ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
Reader Mode
-A A +A
The Case of Rural Labour Households

Reading the Tea Leaves on Financial Inclusion

Understanding the extent of financial inclusion of rural labour households is important since in the intercensal period 2001-11, the proportion of agricultural labourers in the workforce increased by 3.5 percentage points. This paper examines progress in financial inclusion using information on indebtedness of rural labour households collected by the National Sample Survey Office as part of the surveys of employment and unemployment conducted in 2004-05 and 2009-10. It is estimated that 22.3 million out of the nearly 66 million rural labour households report being in debt in 2009-10. The share of formal institutions in the outstanding debt of rural labour households increased from 29% to 37% while the share of moneylenders decreased from 44% to 33% during this period. What is promising is that the reliance on institutional sources among rural labour households without cultivable land increased from 20.6% to 26%. The aggregate picture however masks large variations across the states and one does not observe any structural change in geographical distribution of flow of credit and share of outstanding advances to the landless.



Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

649for India

$20for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top