Das underscored the importance of inclusive growth, stating that a truly developed India should ensure that all citizens, irrespective of their socio-economic status, have access to financial services and the necessary financial literacy.
Need for targeted moves
India’s female labour force participation rate remains below the global average. According to Das, this gap necessitates targeted initiatives including improvements in girls’ education, skill development, workplace safety, and the removal of societal barriers hindering women’s entry into the workforce.
He pointed out that entrepreneurship is a crucial part of economic empowerment, but in India, less than one-fifth of micro, small, and medium enterprises (MSMEs) are owned by women. Women entrepreneurs face many challenges, such as limited access to capital, restrictive societal norms, and difficulties in securing affordable finance.
“The financial sector has a crucial role to play in bridging this gender gap by implementing supportive policies, creating tailored financial products, and leveraging fintech innovations to offer better access to finance,” Das said.
Two main approaches
Das suggested two main approaches for the financial sector: increasing employment opportunities for women within financial institutions and supporting women entrepreneurs through government-sponsored schemes and bank-specific initiatives designed for businesses led by women.He also proposed that banks could actively explore recruiting more ‘bank saathis’ or ‘sakhis’, particularly from among members of self-help groups (SHGs).According to Das, with India’s large young population, tapping into the full potential of MSMEs is essential for driving employment and economic development. Despite their importance, many MSMEs remain small and struggle to scale up due to various challenges, with access to affordable finance being a significant barrier.
Creating jobs the MSME way
“Banks and financial institutions may develop tailored financial products and services that cater specifically to the needs of MSMEs,” Das said. “This includes offering flexible credit options, improving access to working capital, and providing financial support that accommodates the unique cash flow cycles and growth stages of MSMEs.”
Such measures can help MSMEs expand, enhance their productivity, and contribute more significantly to job creation, said Das.
The governor also noted that the Indian economy is making strong progress, marked by macroeconomic and financial stability and a favorable growth-inflation balance. He credited the policy mix pursued in recent years for strengthening the fundamental aspects of the economy and building substantial buffers.