Munich Personal RePEc Archive

The unorganised sector and access to finance in rural India

Kar, Saibal and Dutta, Meghna (2014): The unorganised sector and access to finance in rural India. Published in:

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A large number of studies have predominantly focused on the urban informal manufacturing sector broadly classified as the NDMEs and OAMEs. However, their rural counterparts, despite covering two-thirds of the units overall, are often neglected. These organizations suffer largely from lack of access to formal credit. This chapter offers an in-depth analysis of the access to finance by rural unorganised sectors in comparison to the larger agricultural sector. We also provide a sector-wise and state-wise analysis of volatility of gross value added and fixed assets for various industries within the realm of the rural unorganised sector in India. Finally, we discuss the role of micro-credit organizations in linking the formal credit agencies to the unorganised units in rural India.

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