(Commonwealth_India) Women in India are increasingly taking charge of their financial futures, actively engaging with credit systems and tracking their credit scores, according to a recent report launched by NITI Aayog. This shift in financial behavior is transforming the economic landscape and playing a crucial role in empowering women and fostering entrepreneurship across the country.
The report, titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story,” was unveiled by NITI Aayog CEO BVR Subrahmanyam on Monday. The findings shed light on the growing financial awareness among women, revealing that as of December 2024, a remarkable 27 million women were actively monitoring their credit scores. The figure represents a substantial 42 percent increase from the previous year, signaling a significant rise in women’s engagement with their financial health.
The report, a joint publication by TransUnion CIBIL, the Women Entrepreneurship Platform (WEP) of NITI Aayog, and MicroSave Consulting (MSC), highlights a positive shift in women’s participation within India’s financial ecosystem. Women’s share of the total self-monitoring credit base grew to 19.43 percent by December 2024, up from 17.89 percent in 2023. This growth demonstrates the increasing awareness and self-sufficiency women are adopting when it comes to managing their finances.
A particularly intriguing trend emerging from the data is that non-metro areas have shown a much stronger growth in self-monitoring credit behavior compared to metro regions. Women in rural and semi-urban regions saw a 48 percent rise in actively monitoring their credit, outpacing the 30 percent increase in urban centers. This trend speaks to the growing financial independence of women across the country, beyond just the urban hubs, indicating that financial literacy and access are expanding into rural areas as well.
Regionally, states like Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for 49 percent of women who were self-monitoring their credit as of December 2024. The southern region emerged as the leader with 10.2 million women engaged in self-monitoring. Meanwhile, northern and central states, including Rajasthan, Uttar Pradesh, and Madhya Pradesh, recorded the highest compounded annual growth rates (CAGR) in the number of active women borrowers over the past five years.
The report also points to a noticeable shift in the borrowing patterns of women. Since 2019, the share of women in business loan origination has increased by 14 percent, while their share in gold loans has grown by 6 percent. This growth trend is projected to continue, with women expected to account for 35 percent of business borrowers by December 2024. This marks a significant contribution of women to India’s economic growth, with more women now emerging as entrepreneurs and business owners, further solidifying their role in shaping the country’s economic future.
Despite these advancements, the report also highlights the challenges that continue to hinder women’s full participation in the financial ecosystem. Key barriers include credit aversion, poor banking experiences, a lack of collateral, and difficulties in securing guarantors. These obstacles limit women’s access to finance, which in turn restricts their ability to leverage credit for personal and business growth.
At the launch of the report, NITI Aayog CEO BVR Subrahmanyam emphasized the critical importance of financial access for empowering women entrepreneurs. He noted that the government acknowledges that access to finance is a fundamental enabler of women’s entrepreneurship. The Women Entrepreneurship Platform (WEP), under NITI Aayog, is committed to promoting financial literacy, expanding credit access, and strengthening mentorship and market linkages for women entrepreneurs.
Subrahmanyam also underscored the need for collaborative efforts to ensure equitable financial access for women. He highlighted the importance of designing inclusive financial products that cater specifically to the needs of women. Policy initiatives that address the structural barriers limiting women’s financial participation are essential in accelerating the progress made so far. One such initiative is the Financing Women Collaborative (FWC), which was established under the WEP initiative. This collaborative effort invites more financial sector stakeholders to join in advancing the mission of empowering women through financial inclusion.
Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of WEP, reinforced the value of promoting women’s entrepreneurship as a key strategy for India’s economic growth. Roy pointed out that encouraging women entrepreneurs could create between 150 and 170 million employment opportunities while driving greater women’s participation in the workforce. This would benefit women and stimulate broader economic growth, with positive ripple effects across various sectors of the economy.
The financial landscape for women in India is evolving, with more women becoming active participants in the credit ecosystem. Although challenges remain, the growing trend of women monitoring their credit, securing loans, and taking on entrepreneurial roles is helping to transform India’s financial future. With continued support from the government, financial institutions, and society at large, the momentum toward empowering women financially is set to contribute significantly to India’s broader economic growth.
