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2) Gender inequalities in access to formal credit have long manifested in India’s scarce gender-wise financial statistics. Analyze.(250 words)

TOPIC:  poverty and developmental issues, Inclusive growth and issues arising from it.


2) Gender inequalities in access to formal credit have long manifested in India’s scarce gender-wise financial statistics. Analyze.(250 words)

Financial express

Why this question

Global Findex Survey released by World Bank has underlined a critical issue – gender inequality in access to formal finance. This issue has multiple linkages with GS 1, 2 and 3. The issue of gender inequality, access of finance to SHGs etc, inclusive growth, gender empowerment are all linked to this finding. Thus, it becomes important from Mains perspective.

Key demand of the question

The question demands us to bring out the issue in its entirety. There are two important keywords here which have to be explained and connected – “gender inequalities in access to formal credit” and “scarce gender wise financial statistics”. Following aspects are to be mentioned in your answer

  • Status quo – reflecting gender inequality presently
  • The impacts of gender inequality in access to formal finance
  • Causes behind the issue – here lack of data highlights the lack of policy focus to specifically address this issue.
  • Way forward

Directive word

Analyze – When asked to analyze, you  have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. In the above question, post discussing the issues as highlighted above, Summarize your answer by linking the points.

Structure of the answer

Introduction – Give details about Global Findex Survey and highlight the finding linked to gender inequality in access to formal finance which should set the course of your answer

Body

  • Highlight the detailed findings of the report both the positives (gender gap is reducing in opening of accounts) and the negatives (access to formal finance, refer to stats in article)
  • Explain the statistics by linking it to real issues on ground such as access to finance for SHGs, women start ups etc
  • Highlight the impact of the present situation if it continues to remain so – women are today seen as agents of development , access to finance is thus critical
  • Highlight where have we gone wrong – mention that the lack of policy focus is evident in the lack of finance related statistics from a gender perspective. Mention other causes too

Conclusion – Briefly Summarize and mention a way forward.