MICROFINANCE IN INDIA: BALANCING SOCIAL MISSION AND FINANCIAL SUSTAINABILITY

Abstract

This paper presents a critical review of microfinance in India, examining its historical context, impact on poverty reduction, role in women's empowerment, contribution to financial inclusion, sustainability challenges, regulatory reforms, and emerging trends. The analysis reveals that microfinance has played a significant role in alleviating poverty, empowering women, and promoting financial inclusion in India. However, the sector faces challenges related to sustainability, regulation, and reaching the most vulnerable populations. To ensure the continued success of microfinance, it is essential to address these challenges and adopt a more inclusive and sustainable approach. This paper concludes by offering recommendations for policymakers, MFIs, and other stakeholders to promote the growth and development of the microfinance sector in India.