Micro - Finance (MF) has proved to be an effective tool towards poverty alleviation and economic empowerment of women in a number of Third World countries, Bangladesh Brazil are the best examples of this claim. India with more or less the same realties as many other countries, also recognized the potential of MF for poverty alleviation and adopted Micro - finance to achieve the similar results of reducing poverty and inequality in early 80''s. Though MF in India achieved substantial growth, however, this industry is facing a number of challenges today and calls for some good and context specific wise policies and rigorous implementation. This can be effective in making MF work towards fulfilling its promises of making contribution to alleviating poverty and empowering women by ensuring outreach of MF services the poorest of the poor. The monograph is an endeavour to analyze multiple challenges prevailing in the industry and draw up on policy prescriptions to cope these challenges.
An investigation was carried out to study the “Impact of micro-finance on reduction of poverty in Raina block of Burdwan district in West Bengal”. The survey was conducted during the season of 2011-2012. Through purposive random sampling method two villages were selected; one nearer and the other away from the block head quarter. Adopting random sampling without replacement SHG members of the sample villages were selected and enquired about different aspects of micro-finance and its role for alleviation of poverty. SHG –Bank- NGO model was operating in the study area. Since employment opportunities were available in village2, the SHG members of the sample village were not very keen to operate SHG in a successful and sustainable manner. The differential average annual income in village1 was attributed to SHG financed dairy enterprise. There was also marked difference in consumption expenditure across the villages. However, there were some lapses in repayment of loan in scheduled period by the SHG members in general. Both the NGO and banks should work in unison to motivate and influence the behavior of the SHG members, so that financial exclusion in the remote area could be avoided.
The supply of adequate and timely finance has been identified as one of the major problem area to support and sustain the industrialization process. The sources of finance for the MSEs are classified into institutional and non-institutional. In India, out of these two sources, institutional finance is regulated and directed by the Govt. of India through the Reserve Bank of India. The need to establish developmental financial institutions to provide industrial finance was seriously felt after independence because of shyness of capital markets, under developed financial system and to achieve planned industrial development in the country. To provide finance to MSE sector, various financial institutions have been established. These institutions are playing an important role to meet the credit requirements. The government of India has also implemented various measures and policy initiatives to boost up the institutional finance to MSEs. Hence, at this juncture, an empirical work on institutional finance for MSE sector is highly relevant academic exercise. The book is expected to be a decisive piece of document before the policy makers and general readers interested in the subject.
Micro Finance Institutions are proliferating all over the world, so also in India. They are almost more than two decades old in India and many of them are doing business profitably. Off late, many of them have turned professional and seeking funding from market. This has impacted their sustainability to a great extent. This book explores this phenomenon. The work is empirical in nature and based on authentic data base. The outcome from this research would be of helpful to policy makers and MFIs.
Poverty is one of the common obstacles in achieving higher growth and enhancing the standard of living of the people in low income countries. Most of the developing and underdeveloped countries have recently been pursuing various policies and programs to eradicate poverty, an important impediments to sustainable economic development. Among these policies one of the most important and effective one is Microfinance. This book has primarily tried to find the overall progress of SHGs-BLP in India, then to analyse the saving performance under SHG programe, performance of banks in SHGs lending, progress under Mfi-BLP, lastly performance of SHGs in priority states from 2010-2013.The outcome is MF is multifaceted and works in an integrated system. Despite new developments the penetration of MF remains low and spread highly skewed in Southern India. Indeed there are ample gaps to be filled and this would lead to further changes in MF space in future. MF a powerful tool to address challenge of poverty eradication, raise caution regarding overwhelming push for MFIs to become financially self sustainable, mission drift/questionable practices, call for greater transparency and public awareness.
Indian pharmaceutical industry has played a key role in promoting and sustaining development in the vital field of medicines. The goal of financial performance analysis is to determine the efficiency and performance of firm’s management, as reflected in the financial reports. The analyst attempts to measure the firm’s liquidity, profitability, and other indicators that the business is conducted in a rational and normal way? ensuring enough returns to the shareholders to maintain at least its market value. In this context an attempt has been made an analysis of financial performance of pharmaceutical companies to understand how management of finance plays a crucial role in the growth. The study has been undertaken for the period of twelve years from 1997-98 to 2008-09. In order to analyze financial performance, various accounting ratios and statistical techniques have been used. In this context an attempt has been made an analysis of financial performance of pharmaceutical companies to understand how management of finance plays a crucial role in the growth. The book is a modified version of research project report financially supported by UGC, India.
The independence of India created conditions for setting up of the special institutions, called Development Banks, for supply of finance for industrial development. Although special financial institutions for industrial development were in existence in other countries since the early nineteenth century, they were essentially a post-war phenomenon, especially so far as the developing countries are concerned. To begin with, the Industrial Finance Corporation of India was set up in 1948, within a year of the independence of the country. With the opening of a few more development banks in the country, the industrial finance in India got rapid boost. The present study is an academic probe into the evolution of the development banks in India, along with their changing operational aspects. The analysis should be useful to the researchers and students of financial economics, especially those dealing with industrial finance in India, by providing a deep insight into the development banks in India in the pre-liberalization era.
Although the social banking concept has been well conceived, yet several rural areas remained unbanked. It was during early 1980’s banks started their operation in rural areas through micro finance initiatives for financial inclusion. In Nagaland, micro finance is of recent origin. Micro Finance Schemes is one of the major initiatives affecting the rural people of the state. These schemes have been aiming at improving the income of the poor by extending credit. In fact, one issue germane to microfinance programme is how to improve the credit absorptive capacity of an area. This has not received due attention.This book gives a description of the pattern,progress and implications of micro finance in Nagaland and provides a window to the issues and challenges. Of late, it has been included in the curriculum of the Indian Universities. Being an emerging area it is now an important subject of study. The subject matter of micro Finance is inter disciplinary in nature. The book will be of immense utility not only to the research students but also to the policy makers as well. This book is the first of its kind in this part of the region, which
This edited volume as an outcome of the contributions made by the eminent researchers who have conducted studies on Indian MSME sector. Fourteen papers are included in this edited volume. Authors have collected lot of information form primary and secondary sources. The important aspects covered are: • Performance and challenges of MSMEs in India; • Role of various institutions working for the entrepreneurship development in India; • Various tax incentives and concessions for MSMEs in India; • Role of banks in financing MSMEs in India; • Listing of SMEs in Indian stock exchanges; • Marketing and HR issues of Indian MSMEs; and • Prospects for Indian MSMEs. This bunch of various research works of eminent scholars in an effort to showcase status of Indian MSMEs. I hope the reader will get an understanding of performance, challenges and prospects of MSMEs in India. I am confident that this volume helps the entrepreneurs in facing their challenges; helps prospective entrepreneurs in choosing the sector and to set up their business; students of commerce and management get an idea of the latest developments of Indian MSME sector.
Federal fiscal transfers to state governments are necessary for reducing vertical and horizontal fiscal imbalances. In India also there exists vertical and horizontal fiscal imbalances and federal transfers have become a regular feature of the Indian federation. These are channeled through the Finance Commission, the Planning Commission and various Ministries of the Central government in the form of Shared Tax Revenue, Grants and Loans. The Finance Commission transfers have emerged as one of the major sources of transfers. The present volume makes a modest attempt to analyse various issues relating to the transfer of fiscal resources in the form of shared tax revenue, loans and grants and their relative importance have been discussed. An analysis regarding the structure of fiscal federalism in India, and a detailed empirical analysis to examine the growth and relative importance of different types of fiscal transfers have been made. A critical analysis of the criteria for inter se distribution of Finance commission transfers and their horizontal equity has been discussed.
The need for micro finance in India has arisen due to failure of formal banking system in meeting the credit needs of millions of rural and urban people, who constitute poverty or near poverty groups in the country. The banking sector always demands high discipline in collateral security, procedures, impracticable, repayment schedule, high transaction cost, emanating from the low scale of operation, high turnover of clients. Hence they failed to meet the financing need of those struggling to stay alive. It is possible only by making the strategies to increase the scope of activities of micro finance by including food, credit, health, consumption loans, and skill up gradation and education loans. Micro finance is accessing financial services in an informally-formal route, in a flexible, responsive and sensitive manner. Micro finance aims at assisting communities of the economically excluded to achieve greater levels of asset creation and income security at the household and community level.
Micro finance and its group lending contract have received substantial academic attention in recent years. Swarnajayanti Gram Swarojgar Yojana (SGSY) is a government sponsored micro finance programme of India. Though the programme is in vogue since 1999,there is sufficient debate regarding the efficacy of the ‘programme’. The book is based on the theoretical and empirical aspects of ‘SGSY’ programme. Theoretical part has evaluated the role of transaction cost in making credit accessible to the poor; and the role of ‘back ended subsidy’ in making group lending feasible in diverse population and ensuring group sustainability in an infinite time horizon. Since ‘Independence’ Government of India took several measures to bring the poor under formal credit structure, however, the Government has been successful to bring ‘the better poor’, not the ultra poor. In empirical part I have shown the impact of the programme on human capital, and women empowerment for the ‘programme participants’, and spillover effects on ‘programme non-participants’. This book is useful to the policy planners, micro finance practitioners, NGO workers, and above all the students of micro finance.
The book provides in depth information about the micro finance, its need, history, features, models, main players, and its importance. One of the key roles of micro finance is to provide financial services to the poor, who are neglected by the formal banking sector. Because banks tend to be found in urban areas and majority of the poor live in rural areas where financial services are not provided. Therefore, MFIs are there to reach the rural poor. Appropriate loan sizes for clients matching their needs, realistic interest rates, savings as a prerequisite, regular, short and immediate repayment periods can contribute to sustainability. If these measures to achieve sustainability are put in place, while focusing on the needs of the poorest, then both the social and financial objectives can be achieved.
The community development programme was the first rural development programme launched in India. Because of poor implementation and lack of commitment the programme has failed. Now government has shifted its emphasis on individual targets to group targets. The women Self Help Group s(SHGs) which are covered by the SGSY programme are progressing in different states of India. Hence it is appropriate to study the various dimensions of the participation of women SHG members in the SGSY programme. This study concentrated on to find the effectiveness and implementation of SGSY’s project in Kerala. SUBICSHA is one of the Projects of SGSY implemented in Kerala. The researcher made an attempt to find out whether the SGSY’s is able to alleviate poverty in Kerala through SUBICSHA. With the use of Primary data the study revealed that SGSY is able to improve the standard of living of people of Kerala. Therefore it is suggested to adopt similar type of projects in many other part of India.
The need for micro finance in India has arisen due to failure of formal banking system in meeting the credit needs of millions of rural and urban people, who constitute poverty or near poverty groups in the country. The banking sector always demands high discipline in collateral security, procedures, repayment schedule, high turnover of clients. Hence they failed to meet the financing need of those struggling to stay alive. It is possible only by making the strategies to increase the scope of activities of micro finance by including food, credit, health, consumption loans, and skill up gradation and education loans. Micro finance is accessing financial services in an informally-formal route, in a flexible, responsive and sensitive manner. Micro finance aims at assisting communities of the economically excluded to achieve greater levels of asset creation and income security at the household and community level. In this study we made an attempt to bring out the complete picture of Microfinance in India. The study is presented in five chapters. This is very useful for the Students, Academicians and Researchers who are in the field of commerce & management and, for the policy makers.