The poster boy of microfinance is now seeking some anonymity. In Andhra Pradesh, the epicentre of the worst crisis faced by microfinance in India, SKS Microfinance is playing down its identity and going into preservation mode. At its modest office in a residential colony in Warangal district, India’s largest microfinance company has taken down its board. At its head office in upmarket Begumpet in Hyderabad, it hung a cloth mesh...

Sample some data on the microfinance performance in India: According to the data provided by www.mixmarket.org, microfinance in India reached close to 270 lakh active borrowers in 2009, with the average loan size close to Rs 8,000. This translates into total borrowing to over Rs 20,000 crore. Though this number seems large, it represents only 0.3% of our GDP. Thus, large swathes of poor, both in our villages and urban...

Microfinance is an effective tool for financial inclusion. Here are some elements of the recently embattled sector The recent controversy surrounding the microfinance sector has entirely eclipsed the fact that it is the first effort in India to have delivered financial services to remote corners of the country in a self-sustaining manner. The stakes are high for India’s poor, and we have to pave the way for orderly growth in the...

Uttar Pradesh is not a state readily associated with dynamic economic reform. But the state has taken giant strides in reforming one of the least reformed industries in India: the sugar industry. The country’s second largest sugar producing state after Maharashtra is undertaking an aggressive privatisation of its state-owned sugar mills. It has, just recently, successfully sold off 10 of the 11 operating units of the state’s Sugar Corporation to...

According to the National Crime Records Bureau, since 2003, one Indian farmer has committed suicide every 30 minutes. In 2008, 16,196 farmers took their own lives, bringing the total number of farmer suicides in India between 1997 and 2008 to 199,132. (Significantly, P. Sainath is of the opinion that like all government data, these figures too are unreliable. For when women farmhands kill themselves, their deaths are not enlisted as...