(MENAFN- KNN India)
Mumbai, Sep 6 (KNN) In a compelling address at the Annual FIBAC 2024 Conference, Reserve bank of India Governor Shaktikanta Das underscored the pivotal role of the financial sector in addressing the gender disparity in India's workforce and supporting women entrepreneurs.
The conference, organised jointly by the Federation of Indian Chambers of Commerce and industry (FICCI) and the Indian Banks' Association (IBA), provided a platform for Das to emphasise the need for inclusive economic growth.
Governor Das highlighted the stark contrast between India's female labour force participation rate and the global average, stressing that this discrepancy points to a significant area for improvement.
He argued that a developed India must ensure that every citizen, regardless of socio-economic background, has access to financial services and possesses adequate financial literacy.
Addressing the current challenges faced by women in the financial and entrepreneurial sectors, Das noted that less than 20 per cent of micro, small, and medium enterprises (MSMEs) in India are owned by women.
He attributed this low representation to several factors, including limited access to capital, restrictive societal norms, and inadequate financial resources.
"The financial sector has a crucial role to play in bridging this gender gap," Das asserted. He proposed two main strategies: firstly, increasing employment opportunities for women within financial institutions, and secondly, supporting women-led enterprises through specially designed financial products and government-sponsored schemes.
The governor suggested that banks could also consider increasing the number of 'bank saathis' or 'sakhis'-individuals who facilitate banking services in rural areas-particularly among members of self-help groups (SHGs). This, he argued, would enhance financial inclusion and support grassroots-level financial engagement.
Das also pointed out the importance of nurturing MSMEs, which are vital for driving employment and economic development. Many of these enterprises remain small and struggle to scale up due to various barriers, including limited access to affordable finance.
He encouraged banks and financial institutions to develop tailored products and services that address the unique needs of MSMEs, such as flexible credit options and improved working capital access.
The governor concluded by reaffirming the strength and resilience of the Indian economy, noting its macroeconomic stability and the favourable balance between growth and inflation.
The policy measures implemented in recent years, he said, have fortified the economy's fundamentals and bolstered its resilience against external shocks.
Das's address at FIBAC 2024 highlights a critical juncture for India's financial sector, emphasising the need for systemic changes to foster gender inclusivity and support the growth of women-led businesses as part of a broader strategy for equitable economic development.
(KNN Bureau)
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