NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By E Kumar Sharma

Nobel laureate Muhammad Yunus from Bangladesh, who has been an inspiration for many in the Indian micro-lending space, feels it is time to build the rural economy as that could be the best tool against solving India’s worker migration problem. He has also urged the Indian microfinance institutions (MFIs) to consider setting up a national disaster fund to help in times of calamities. Yunus, was speaking on June 6, Saturday, at a webinar organised by Sa-Dhan, the platform for Indian MFIs. Speaking in the context of the plight of migrant labourers, Yunus says, “Micro credit is about building rural economy. Corona crisis has given the industry an opportunity to aid in creating a strong rural economy. Creating a strong independent rural economy will not only halt rural to urban migration but in the years to come, the migration will be urban to rural. Microfinance institutions should create programmes like venture capital to create entrepreneurs in rural India.”

Photo courtesy of Martin Jernberg.