• UGI USER
  • Jul 07, 2024
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RBI: ONLY 7% MSME LOANS GO TO WOMEN

Why in the news?

  • RBI Executive Director Neeraj Nigam highlights the need to increase credit supply to women.
  • Currently, only 7% of the total outstanding MSME loans are to women-led businesses.
  • Nigam spoke at the “Financing Women Collaborative” event organised by Niti Aayog and Transunion Cibil.

Female Labour Force Participation:

  • Female labour force participation in FY22 was 32.8%, compared to over 77% for men.
  • Low participation of women in the workforce hampers their financial inclusion and economic growth.
  • A fifth of MSMEs are led by women, yet they receive a disproportionately low share of credit.
source:medium
About MSMEs

  • MSMEs: Micro, Small, and Medium Enterprises.
  • Classified by investment in manufacturing/service equipment and annual turnover.
  • Produce, process, and preserve goods and commodities.

MSME Regulation in India:

  • The Ministry of MSME formed in 2007.
  • Develops policies, programs, and implementation for MSME growth.
  • The MSME Act of 2006 addresses issues, establishes a National Board, and enhances competitiveness.

Associated Article:

https://universalinstitutions.com/the-curse-of-smallness-definition-of-msmes/