MICROFINANCE AND EXPERIENCES IN MEASURING INCOME AND INEQUALITY: EVIDENCE FROM AN INDIAN STATE

This research was conducted to investigate the microfinance impact on the household income falling in the rural are in an Indian State. The study was primary in nature and conducted in Gujarat state. A convenience sampling technique was considered for the selection of the households from the rural areas in the State of Gujarat. The data has been taken from SEWA bank. Since, SEWA bank is considered as a pioneer in introducing the concept of Microfinance in India and has started its operation in Ahmedabad city, Gujarat. Therefore, three surrounding districts are covered in the study. SEWA bank is women oriented. So, all the respondents are women. The sample households were distributed into two groups, participants and non- participants. Participants women are those, who are associated with SHG's and also provided micro-credit support, whereas, non-participants are those women participants in the same area who are not provided any micro–credit. Descriptive statistics were used to analyze the characteristics of the respondents. A comparison is made between participants and non-participant income and t test is applied. Microfinance impact on the participants is measured by multiple regression model. Income inequality distributed between participant and non-participants are measured by the support of Gini coefficient and Lorenz curve. The result of the study indicates positive outcome of the participation in microfinance program on the participant's income. The study result shows the significant increase in the income of the participants