About the book

An arrangement of efficient credit provision is a sine qua non for income generation in the enterprises of

capitalist system. Various measures were initiated for improving outreach and ensuring credit to rural areas.

Formal credit markets in India have on the whole failed to provide credit to the rural areas. For instance, formal

credit markets needs numerical literacy and often have little understanding of petty business and social

obligations in rural areas. Further the formal credit agencies find themselves incapable to entertain credit

requirement of a sizeable rural people. One of the major problems facing formal rural credit is the poor

performance of the recovery mechanism. Subsequent Narasimham Committee Report included phasing out of

concessional rates, lowering the ‘directed credit’ towards rural sector, instituting special tribunals for recovery

of the dues, etc. This results in joint liability Self Help Groups (SHGs), a socio-economic and legal innovation

because it incentivize to repay loans in the rural areas. In such cases, then, micro-financing services offer the

best solution to the aforementioned problem. It is encouraging to note that micro-financing is being recognized

as a powerful tool in alleviating poverty and promoting growth and development at the grassroots level. It can

influence structural cause of rural poverty by guarantees a rise in real output, a more equitable income

distribution and increase welfare levels for the poor majority of rural people. Leading writers saw micro-credit

as a panacea for income generation in rural microenterprises. It also records the impact on income generation, of

various social factors such as quality of leadership, education, cast, gender and dependency. This book uses

mainly primary data for discussing results and other necessary socio-economic interventions for generating

income to remove poverty from rural areas. The evaluation carried out from various perspectives led to

conclusive evidence showing that duration of SHGs membership and the kinds of SHGs were predominant in

income generation in rural microenterprises. For reaching potential income, a rural micro-entrepreneur also need

access to one or more of the following: transport, communications, power, water, storage facilities, a legal

system for enforcing contracts and settling disputes, etc. Apart from infrastructure, rural micro entrepreneurs

require information about market trends and skills to run their micro enterprises.

Dushyant Tyagi holds an M.Phil degree from Department of Economics, CCS University, Meerut and PhD from Giri Insititute of Development Studies, Lucknow attached to CSJM Univeristy Kanpur. He has contributed a number of research articles. Presently, he is serving as Assistant Professor ant Zakir Husain Delhi College (Evening), University of Delhi.

Sharad Ranjan is at present Associate Professor of Economics at Zakir Husain Delhi College (Evening), University of Delhi. He holds an M.Phil degree in Applied Economics from Centre for Development Studies, Trivandrum and PhD from Centre for Economic Studies and Planning, JNU, New Delhi. He has over twenty years of teaching experience. He has also contributed numerous articles to various leading journals of high repute that includes Economic and Political Weekly, Productivity and Social Scientist.