Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it.
5. Account for the role that microfinance institutions can play in poverty alleviation in India. (250 words)
Reference: Economic Survey 2019-20 – Chapter 7
Why this question:
The question is based on the analysis provided by the recently released economic survey upon the role that microfinance institutions can play in poverty alleviation in India
Key demand of the question:
The answer must discuss the role that microfinance institutions can play in poverty alleviation in India
Account – Weigh up to what extent something is true. Persuade the reader of your argument by citing relevant research but also remember to point out any flaws and counter- arguments as well. Conclude by stating clearly how far you are in agreement with the original proposition.
Structure of the answer:
Briefly explain what Microfinance institutions are.
- Explain the importance of microfinance institutions in poverty alleviation.
- Microfinance services help the poor to lift out poverty, provide them self- employment and empower the women. In this way, microfinance services made poor people start their own business through they can increase income and be bankable which contribute the overall economic growth and poverty reduction.
- Discuss about the future prospects these institutions have in India.
- Suggest suitable measures to be taken in this regard.
Conclude by suggesting way forward.