Micro Credit and Inclusive Growth: An Analysis

Abstract

It is now universally accepted that the objective of inclusive growth cannot be attained without financial inclusion. Access to safe and affordable financial services for the poor and disadvantaged people is a prerequisite for reducing income disparities and eradication of poverty. Micro Credit helps in reducing poverty. It is considered to be a vital tool to provide credit for self- employment and other financial and business services, including savings and technical assistance to the very poor people. It also serves to empower women and for the upliftment of entire community by extension of credit facilities. The Government of India has emphasized inclusive growth strategy in the eleventh five year plan. Yet, the poor people are deprived of financial facilities across the country. Micro Credit system facilitates financial assistance to the needy people. It appears to be vital in achieving inclusive growth, through generating self employment opportunities to the people at the bottom of the pyramid.

 The present paper discusses the Micro Credit as an effective tool for poverty reduction and achieving inclusive growth of Scheduled Castes and Scheduled Tribes in Karnataka State, and assesses the growth and performance of Micro Credit Finance Scheme.This study is based on the secondary sources of data collected from various books, journals and periodicals. Reliable statistical information on Micro Credit beneficiaries of SC & ST population in Karnataka is also gathered from the Economic Survey of Karnataka 2012-13.