Odisha Strengthens Financial Inclusion with Focus on Women-Led Enterprises

Bhubaneswar: In a landmark initiative to bolster financial inclusion and empower women entrepreneurs, Odisha’s Deputy Chief Minister and Minister for Mission Shakti Department, Women and Child Development, and Tourism, Pravati Parida, chaired a high-level meeting with representatives from leading banks in the state. The meeting focused on advancing credit linkage for Self-Help Groups (SHGs), supporting “Lakhpati Didis” in livelihood activities, addressing challenges, and setting strategic goals for the future.

Under Mission Shakti’s stewardship, Odisha has emerged as a national leader in SHG bank linkages. During FY 2023-24, loans amounting to ₹16,586 crore were disbursed to over 4.13 lakh SHGs, positioning Odisha as the fourth-best-performing state in the country. The increasing average loan size reflects the success of efforts to enhance institutional credit access for SHG members, showcasing the state’s commitment to women’s empowerment.

The meeting also highlighted plans to expand enterprise financing for women, urging banks to introduce schemes specifically tailored for individual women entrepreneurs. This shift aims to foster women-led small and medium enterprises (SMEs), opening new avenues for economic growth and self-reliance.

To further support SHGs, the state government reaffirmed its zero-interest loan program, offering loans of up to ₹10 lakh under the ongoing interest subvention scheme. An allocation of ₹300 crore has been proposed for FY 2024-25, with banks encouraged to promote the scheme for maximum reach and impact.

A key area of focus was addressing Non-Performing Assets (NPAs) in SHG loans. Odisha currently boasts one of the lowest NPA rates nationally at 1.42%, with plans to reduce this further to below 1%.

Looking ahead, the Department of Mission Shakti has set an ambitious target of facilitating ₹30,000 crore in SHG bank linkages, ₹1,000 crore in interest subvention, and providing enterprise financing to over 10 lakh women SHG members by 2030. This vision includes promoting non-farm and service-sector livelihoods to meet the evolving needs of SHG members.

Deputy Chief Minister Pravati Parida praised Mission Shakti’s progress and emphasized the critical role of the banking sector in empowering women. She called on stakeholders to deepen their engagement with SHGs and support the state’s goal of creating more “Lakhpati Didis” through increased loan disbursements to WSHG members.

The Deputy Chief Minister also stressed the need to resolve issues related to Subhadra beneficiaries’ bank accounts, ensuring seamless access to financial support.