Content

1. 67 and Rising: India’s Financial Inclusion Gains Momentum   
2. National Handloom Day 2025

67 and Rising: India’s Financial Inclusion Gains Momentum   

What is Financial Inclusion?

• Definition: Financial inclusion refers to providing affordable financial services—banking, credit, insurance, pensions, and investments—to all individuals and businesses, especially underserved groups.
• Why It Matters: Enables inclusive economic growth, reduces poverty, increases resilience to financial shocks, and supports entrepreneurship and productivity.
• Global Recognition:
  • UN SDGs: Identified as a key enabler in 7 out of 17 goals (e.g., poverty reduction, gender equality, decent work).
  • World Bank: Monitors progress via Global Findex Database.

Relevance : GS 2 ( Governance, Inclusive Growth, Government Schemes), GS 3(Indian Economy)

India’s Financial Inclusion Index (FI-Index) – Key Data (2025)

• FI-Index Value (2025): 67.0
  • ↑ from 64.2 in 2024 and ↑ 24.3% since 2021 (baseline year).
• Index Scale: 0 (no inclusion) to 100 (complete inclusion).
• Index Components (97 indicators):
  • Access (35% weight): Infrastructure availability – bank branches, ATMs, PoS, digital platforms.
  • Usage (45% weight): Actual use of services – credit, savings, insurance, UPI.
  • Quality (20% weight): Financial literacy, consumer protection, service equity.

PMJDY – The Foundation of Financial Inclusion

• Total Beneficiaries (Aug 2025): 55.98 crore
  • Women Account Holders: >55% of total.
• Key Features:
  • No minimum balance, ₹1 lakh accident cover, ₹10,000 overdraft, Rupay card.
• Outreach:
  • 13.55 lakh Bank Mitras (banking correspondents).
  • 107 Digital Banking Units (DBUs) functional (Dec 2024).
• Campaign Drive (July 2025):
  • 6.65 lakh PMJDY accounts opened in 1 month.
  • Over 10 lakh KYC updates.
  • 99,753 outreach camps held.

Key Support Schemes – Multi-Sectoral Expansion

a. Social Insurance Schemes

b. Pension Scheme

• Atal Pension Yojana (APY):
  • Subscribers: 7.65 crore (April 2025)
  • Corpus: ₹45,974.67 crore
  • Women subscribers: ~48%
  • Monthly pension: ₹1,000–₹5,000 (based on contributions)

c. Credit Enablement – MSMEs & Women

• Pradhan Mantri MUDRA Yojana (PMMY):
  • Loans sanctioned: 53.85 crore
  • Amount sanctioned: ₹35.13 lakh crore (as on Aug 2025)
  • Target groups: Women, minorities, first-time entrepreneurs
  • New Initiative: Tarun Plus – ₹10L–₹20L loans for repeat borrowers
• Stand-Up India Scheme:
  • Total amount sanctioned: ₹61,020.41 crore (as on Mar 2025)
  • Focus: SC/ST/women entrepreneurs in greenfield ventures

d. Digital Empowerment – UPI Revolution

• UPI Transactions (June 2025):
  • Volume: 18.39 billion
  • Value: ₹24.03 lakh crore
  • Share in India’s digital transactions: 85%
  • Global Contribution: ~50% of world’s real-time payments

e. Women Empowerment – Mahila Sammriddhi Yojana

• Target: Economically weak women
• Loan: Up to ₹1.4 lakh to SHGs
• Disbursement: ₹72,859 lakhs (till Mar 2025)

f. Agriculture Credit – Kisan Credit Card (KCC)

• Operative accounts: 7.72 crore farmers
• Outstanding loan: ₹10.05 lakh crore (Dec 2024)
  • ↑ from ₹4.26 lakh crore (2014)
• Purpose: Working capital, marketing, household needs, farm maintenance

Policy Frameworks – Strategic Anchors

a. National Strategy for Financial Inclusion (NSFI 2019–24)

• Objectives:
  • Universal financial access within 5 km radius
  • Basic financial bouquet: savings, credit, insurance, pension
  • Livelihood & skill linkages
  • Financial literacy through AV modules
  • Grievance redressal and consumer protection

b. National Strategy for Financial Education (NSFE 2020–25)

• 5C Approach:
  • Content: Curriculum & training material
  • Capacity: Build intermediaries’ capabilities
  • Community: Leverage local networks
  • Communication: Mass outreach
  • Collaboration: Multi-stakeholder effort

Recent Campaign – 2025 Financial Saturation Drive

• Timeline: July–September 2025
• Objective: Reach every Gram Panchayat/ULB to:
  • Open new PMJDY accounts
  • Enrol in PMSBY, PMJJBY, APY
  • Conduct re-KYC
  • Raise awareness on digital fraud, grievance redressal
• Progress (July 2025):
  • 6.65 lakh accounts opened
  • >10 lakh KYC re-verifications
  • ~1 lakh outreach camps held

Outcomes and Impact – India’s Financial Inclusion Landscape (2025)

• FI-Index reflects:
  • ↑ access and use of banking and digital services
  • ↑ quality via financial literacy and protection
• Inclusivity gains:
  • Women, rural households, small entrepreneurs, unorganised sector
• Reduced informal credit dependency, esp. in agriculture and MSMEs
• Massive digital transformation through UPI and DBT architecture

Challenges Ahead

• Sustainability of Usage: Moving from mere account ownership to active usage
• Digital Divide: Regional, gender-based, and rural-urban disparities
• Financial Literacy: Low awareness of rights, fraud risks, grievance redressal
• Cybersecurity: Rising frauds as digital penetration increases

Conclusion

• India’s rising Financial Inclusion Index (67 in 2025) reflects a robust shift from access to active usage and quality, driven by digital innovation (like UPI), targeted schemes (PMJDY, APY, MUDRA), and grassroots campaigns for saturation and literacy.
• The transformation is structural and inclusive—bridging rural-urban, gender, and class divides—laying the foundation for equitable, resilient, and participatory economic growth.

National Handloom Day 2025

Background & Significance

• Historical Roots:
  • Tied to the Swadeshi Movement launched on 7th August 1905, promoting indigenous industries like handloom as tools of economic resistance.
• Institutionalisation:
  • 7th August declared National Handloom Day in 2015, first celebrated in Chennai.
• Objective:
  • Celebrate handloom heritage.
  • Recognise contributions of artisans.
  • Promote ‘Vocal for Local’ and Atmanirbhar Bharat.

Relevance : GS 1( History , Heritage)

11th National Handloom Day 2025

A. Venue & Awards

• Date & Venue: 7th August 2025, Bharat Mandapam, New Delhi.
• Dignitary: President of India.
• Awards Distributed:
  • Sant Kabir Awards (5):
    • ₹3.5 lakh, gold coin, Tamrapatra, shawl, certificate.
  • National Handloom Awards (19):
    • ₹2 lakh, Tamrapatra, shawl, certificate.

B. Theme-based Innovation:

Handloom Hackathon 2025

• Date: 4th August at IIT Delhi.
• Theme: “DREAM IT; DO IT”
• Stakeholders: Ministry of Textiles, NDC, FITT, IIT-D.
• Objective: Tech-enabled, design-led solutions for traditional problems.

C. Public Engagement Initiatives

1–8 August 2025: Week-long Celebration

• Know Your Weaves Campaign:
  • Venue: National Crafts Museum, New Delhi.
  • Activities:
    • Live demos, storytelling, natural dye workshops.
    • Weaves like Banarasi, Chanderi, Kanchipuram, Pochampally.
    • Youth engagement through quizzes, installations.
• Saree Festival: Janpath Haat (116 weaves).
• Fashion Shows:
  • Vastra Veda – regional handloom showcases.
  • Naad – fusion of music and handloom narratives.
• India International Hand-woven Expo:
  • Dates: 7–9 August at Bharat Mandapam.
  • Buyers–Sellers meet for global promotion.

Sectoral Overview: Economic & Social Context

A. Employment & Livelihood

• Largest cottage industry in India.
• 4th Handloom Census (2019-20):
  • 35.22 lakh households, >35 lakh artisans.
  • Women comprise 72% of weavers – vital for rural women’s empowerment.

B. Cultural Relevance

• Carries stories of heritage, identity, and ecology.
• Made using eco-friendly, low-capital, and sustainable methods.
• Popular weaves: Banarasi, Kanjeevaram, Chanderi, Bomkai, Paithani, Jamdani, etc.

Global Recognition & Export Performance

A. India’s Global Handloom Standing

• 95% of the world’s handwoven fabric is from India.
• Unique due to living craft traditions + commercial viability.

B. Exports (FY 2024-25):

C. Product Categories (Share in Total Export):

• Made-ups (Curtains, linen): 42.4%
• Floor coverings: 40.6%
• Clothing accessories: 12.7%
• Fabrics: 4.3%

 Government Schemes: Financial & Policy Support

A. Key Schemes

B. NHDP Performance

C. Social Security Measures

• PMJJBY, PMSBY, MGBBY schemes.
• Awardee weavers (60+ years): ₹8,000/month support.
• Children of weavers: Scholarships up to ₹2 lakh/year.

Modernisation, Digitisation & Capacity Building

GI Tagging: Preserving Design Identity

• 104 handloom products registered under GI Act (1999).
• Seminars, workshops conducted for awareness and registration.

Critical Appraisal

Strengths:

• Deep cultural roots + global market edge.
• Inclusive (women-dominated, rural employment).
• Eco-friendly production.
• Supported by strong institutional frameworks (NHDP, RMSS).

Challenges:

• Competition from powerlooms & cheap imports.
• Lack of awareness among youth & modern consumers.
• Low income levels despite high skill.
• Fragmented supply chains, weak marketing.

Way Forward

• Design-Led Innovation: Expand hackathons, design schools in clusters.
• Market Expansion: Strengthen exports via trade pacts, fashion weeks.
• Digital Push: Strengthen platforms like indiahandmade.com.
• Social Media Campaigns: Influence-driven marketing to attract youth.
• Integrated Value Chains: Cooperatives, logistics, branding under one roof.
• Financial Literacy & Credit Access: Strengthen Mudra, SHG linkages.
• Education: Include handloom heritage in school & design curriculums.

Conclusion

National Handloom Day 2025 exemplifies India’s renewed commitment to blending heritage with innovation, honouring the artisans, and building a self-reliant handloom ecosystem. It reflects a strategic vision of “economic empowerment through cultural pride.” As India celebrates its weaving traditions, the focus is shifting from preservation to transformation, from craft to commerce.