IMPACT OF NABARD’S MICROFINANCE INITIATIVES ON POVERTY ALLEVIATION AND EMPLOYMENT GENERATION IN RURAL INDIA
DOI:
https://doi.org/10.65009/erbnhr88Keywords:
NABARD, Microfinance, Poverty Alleviation, Employment Generation, Rural Development,,Abstract
This study examines the impact of the National Bank for Agriculture and Rural Development’s
(NABARD) microfinance initiatives on poverty alleviation and employment generation in rural
India, using secondary data from authentic government and institutional sources. Drawing
upon data from NABARD annual reports, Reserve Bank of India (RBI) publications, Ministry
of Rural Development statistics, and reports from the National Sample Survey Office (NSSO),
the analysis focuses on trends in credit disbursement, Self-Help Group (SHG) participation,
and the resultant socio-economic changes. The study employs descriptive statistics and
comparative trend analysis to assess improvements in household income, employment
opportunities, and livelihood diversification. Findings indicate that NABARD’s microfinance
programs, particularly through the SHG-Bank Linkage Programme, have played a significant
role in enhancing financial inclusion, empowering women, and creating sustainable income
sources. However, challenges such as uneven regional penetration, repayment defaults, and
limited financial literacy continue to hinder the full potential of microfinance in rural
transformation. The paper concludes with policy recommendations to strengthen microfinance
outreach, improve capacity building, and ensure equitable socio-economic development across
rural India.
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