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.