The role of NBFCs, MFIs in empowering rural women entrepreneurs in supporting agricultural ventures

Agriculture is the backbone of rural India, employing a significant portion of the population and contributing substantially to the country’s GDP. Despite their critical role in agricultural productivity, rural women continue to face systemic challenges that hinder their ability to fully participate in and benefit from the sector. Limited access to land ownership, financial services, and modern technology keeps them marginalized, affecting overall agricultural efficiency and economic development.

The gender disparity in Indian agriculture is stark. According to the latest data from the National Sample Survey Office (NSSO), women constitute nearly 75 per cent of the agricultural workforce, yet they own less than 13 per cent of landholdings. This lack of ownership translates into limited decision-making power and reduced access to institutional credit, government schemes, and technological advancements. Addressing these gaps is crucial for achieving food security, economic sustainability, and inclusive growth in rural India.

Challenges faced by rural women

1. Land ownership and legal barriers: Land is a fundamental asset for agricultural productivity, yet rural women rarely have direct ownership of farmland. Social customs and inheritance laws often favor male heirs, leaving women dependent on male family members for land access. The absence of legal recognition restricts their eligibility for formal credit, subsidies, and agricultural training programs.

2. Financial exclusion and credit access: Traditional banking institutions have historically neglected rural women due to their lack of collateral and financial history. According to the Reserve Bank of India (RBI), only 27% of rural women have access to formal banking services. This financial exclusion prevents them from investing in better-quality seeds, fertilizers, irrigation systems, and farm equipment, thereby limiting their productivity.

3. Limited technological adoption: Modern agricultural technology has revolutionized farming practices, yet its adoption among rural women remains minimal. Many women lack the training to use advanced farming tools, mechanized equipment, and digital platforms that could optimize yield and efficiency. Additionally, restricted internet access in remote areas further exacerbates the digital divide, preventing women from leveraging online markets and agricultural resources.

4. Lack of skill development and training: Agricultural education and skill-building programs are predominantly tailored for men, leaving women with fewer opportunities for formal training. Women’s participation in agricultural extension services, which provide knowledge on sustainable practices, crop rotation, and pest management, remains critically low. Without targeted efforts to include them in these initiatives, rural women are left behind in adopting innovative and profitable farming methods.

Empowering rural women: The way forward

1. Policy reforms and legal recognition: A fundamental shift in land ownership policies is essential to ensure that women gain legal rights to farmland. Government initiatives such as joint land ownership schemes and gender-inclusive property laws can empower women by providing them with the security needed to access institutional credit and investment opportunities.

2. Expanding financial inclusion through NBFCs and MFIs: Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs) have played a transformative role in bridging the financial gap for rural women. By offering microloans with flexible repayment options, these institutions enable women to invest in agricultural inputs, livestock, and value-added enterprises such as food processing. Digital banking solutions tailored for rural women can further enhance their financial participation, allowing them to build credit histories and access larger loans over time.

3. Encouraging technological integration: Customised training programmes focusing on digital literacy, mechanised farming, and precision agriculture can help women harness modern agricultural tools. Partnerships with agritech startups and NGOs can facilitate hands-on learning, ensuring that women can independently operate machinery, use mobile-based farming applications, and access real-time market prices to sell their produce at competitive rates.

4. Strengthening market linkages: One of the most effective ways to uplift rural women in agriculture is by integrating them into formal supply chains and markets. Establishing women-led cooperatives and self-help groups (SHGs) can create collective bargaining power, allowing women to sell their produce directly to wholesalers, retailers, and exporters. Additionally, government-backed e-commerce platforms and digital mandis can provide them with wider market access beyond local traders.

Conclusion

The empowerment of rural women in agriculture is not merely a matter of gender equality but a crucial driver of economic and social progress. By addressing the structural barriers they face, — ranging from land rights and financial access to technological training and market integration — India can unlock the untapped potential of its agricultural workforce. Policies and financial institutions must work collaboratively to create an inclusive agricultural ecosystem where rural women are recognised not just as labourers but as key contributors to the nation’s food security and economic growth. The future of Indian agriculture depends on an equitable and empowered rural workforce, and women must be at the heart of this transformation.

(The author is Managing Director & Co-Founder, SAVE Solutions)