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NITI AAYOG LAUNCHES REPORT ON WOMEN’S ROLE IN INDIA’S FINANCIAL GROWTH STORY

Context

NITI Aayog released a report titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story.”

The report was prepared by TransUnion CIBIL, the Women Entrepreneurship Platform (WEP) of NITI Aayog, and MicroSave Consulting (MSC).

Increase in Women’s Financial Awareness

• As of December 2024, 27 million women were monitoring their credit scores, showing a 42% rise from the previous year.
• This increase reflects a growing awareness of financial management among women.

Importance of Financial Access for Women Entrepreneurs

• The government recognizes that access to finance is essential for empowering women entrepreneurs.
• WEP works to promote financial literacy, access to credit, mentorship, and market linkages for women.
• The Financing Women Collaborative (FWC) has been created to bring financial stakeholders together to support this goal.

Impact of Women’s Entrepreneurship on Economic Growth

• Encouraging women to start businesses can generate employment opportunities and boost economic growth.
• It is estimated that women’s entrepreneurship could create jobs for 150 to 170 million people.

Increase in Credit Self-Monitoring by Women

• Women’s share in the total self-monitoring base rose to 19.43% in December 2024, up from 17.89% in 2023.
• Growth in self-monitoring credit awareness was higher in non-metro regions (48%) compared to metro areas (30%).
• Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for 49% of all self-monitoring women.

Growth in Women’s Business and Gold Loans

• Since 2019, women’s participation in business loan origination has increased by 14%.
• Women now account for 35% of business borrowers.
• Their share in gold loans has increased by 6%.

Challenges Faced by Women in Accessing Credit

• Many women hesitate to take loans due to credit aversion and negative banking experiences.
• Issues like lack of collateral, difficulty in finding guarantors, and readiness for credit remain major challenges.

Opportunity for Financial Institutions

• With rising credit awareness and better financial scores, banks and financial institutions can design gender-smart financial products.
• These products should cater to women’s unique financial needs and encourage more women to participate in the financial sector.

Conclusion

• Increasing financial awareness and access to credit are crucial for empowering women entrepreneurs in India.
• Addressing credit barriers through inclusive policies and gender-smart financial products can accelerate women’s economic participation and growth.