What is the role of microfinance in poverty alleviation in India?

Microfinance plays a crucial role in poverty alleviation in India. It involves providing small loans, savings, and other financial services to low-income individuals and households who lack access to traditional banking services. Microfinance enables the poor to start or expand small businesses, generate income, and improve their living standards. It empowers women by giving them control over financial resources and promoting gender equality. Microfinance institutions also provide financial literacy and entrepreneurship training, enhancing the capacity of the poor to manage their finances effectively. However, challenges such as high interest rates, over-indebtedness, and lack of regulation need to be addressed to ensure the sustainable impact of microfinance in poverty alleviation.