A survey across northern and western India on ‘Women and Finance’, released just ahead of Women’s Day 2025, has shown that 90 per cent of female entrepreneurs in rural India are diligent savers, who put away a portion of their monthly income as savings.
The survey, conducted by Haqdarshak and DBS Bank India, has revealed that 100 per cent of respondents in Madhya Pradesh; 95 per cent in Maharashtra; and 73 per cent in Rajasthan set aside a portion of their income as savings.
Among the female rural entrepreneurs surveyed, 33 per cent save between 20 per cent and 50 per cent of their monthly income.
DBS is a leading financial services group in Asia with a presence in 19 markets; and it is headquartered and listed in Singapore.
Haqdarshak is an organisation that is bridging the information and access gap between citizens and social protection services (both government and private) using technology and a network of last-mile field agents called ‘Haqdarshaks’ (mostly women).
Rural survey builds upon ‘Women and Finance’ series launched by DBS Bank India in 2024
The current report, timed with International Women’s Day 2025, builds upon the ‘Women and Finance (WAF)’ study launched by DBS Bank India in 2024. That study comprises three reports, each capturing unique insights from women across different segments and their attitudes towards finance.
The first two WAF reports provided insights into women in urban India, focusing on their savings and investment behaviours, career preferences, and the challenges they face in the workforce. The third report centred on women entrepreneurs in Indian metros, identifying key areas where they seek support and opportunities for business enablement.
The current rural survey has sampled 411 women entrepreneurs across rural districts in Madhya Pradesh, Maharashtra, and Rajasthan, with 402 being members of Self-Help Groups (SHGs). This was supplemented by qualitative insights from five focus group discussions (FGDs), offering a nuanced understanding of their experiences, according to a media release summarising the survey.
Financial decision-making dynamics: The survey reveals a shift towards greater financial autonomy among female Indian rural entrepreneurs. About 18 per cent of the respondents make financial decisions independently; 47 per cent make financial decisions jointly with their husbands; 24 per cent stated that their husbands make all financial decisions; and the remaining 11 per cent consult their immediate or extended family members. This distribution highlights both progress and persistent traditional norms.
Prudent savings habits: A notable 90 per cent of respondents save a portion of their income. Out of these regular savers, 57 per cent save less than 20 per cent of their monthly income; 33 per cent save between 20 per cent and 50 per cent; 5 per cent save more than 50 per cent of their income; while the remaining respondents are unsure about the portion of their income saved, suggesting a need for improved financial literacy and planning.
Among savers, 56 per cent opt for bank deposits; 39 per cent participate in SHG savings programmes; and 18 per cent set aside cash without investing it in any instruments. (This suggests there is an overlap between savers opting for bank savings and SHG savings.) Approximately 64 per cent reinvest their business profits into their enterprises, reflecting a strong orientation towards business expansion and growth.
Banking preferences: The female entrepreneurs in the rural India survey exhibit a strong preference for traditional banking methods. A majority — 89 per cent — favour in-person banking, underscoring their reliance on conventional channels despite the increasing availability of digital services.
Despite 99 per cent of respondents a having bank account, only 38 per cent utilise digital banking services for their businesses. Among these digital users, 70 per cent rely solely on UPI for business transactions; 20 per cent combine UPI with mobile or Internet banking; and 10 per cent use only mobile banking, Internet banking, or other digital services. This highlights a significant opportunity to enhance digital financial literacy and infrastructure, enabling rural entrepreneurs to fully harness the benefits of digital banking.
Access to credit: According to the survey, 36 per cent of female Indian rural entrepreneurs started their businesses using personal savings, while 25 per cent relied on loans. Additionally, 29 per cent combined their savings with loans or borrowed from family and friends, employing both formal and informal financial sources.
Nearly 80 per cent secured funding through a combination of SHGs and/or other lending channels, while 43 per cent relied solely on loans from SHGs. About 15 per cent of the respondents stated that they had accessed government credit schemes.
Growth aspirations: To expand their businesses, rural entrepreneurs seek support from industry and government (72 per cent); assistance with digitisation (39 per cent); business mentorship (35 per cent); and networking opportunities (32 per cent). Focus groups revealed a strong commitment to community development among respondents, who aspired to create jobs for other women in their villages.
“22 to 27 million individuals are employed by women-owned businesses in rural India”
Commenting on this survey, Azmat Habibulla, Managing Director and Head of Group Strategic Marketing & Communications at DBS Bank India, said, “A 2024 World Bank estimate indicates that 22 to 27 million individuals are employed by women-owned businesses in rural India, underscoring their significant contribution to local economies. Understanding the unique challenges these entrepreneurs face — and identifying the support they need to overcome them — is essential.”
Aniket Doegar, Co-Founder and CEO of Haqdarshak, said, “At Haqdarshak, we collaborate closely with rural women entrepreneurs, understanding the challenges they face — not only in accessing financial services and schemes but also in enhancing their financial literacy, skills, and confidence…. Our aim is to drive meaningful dialogue and build actionable solutions that bridge knowledge gaps, ensuring these women have improved access to social protection and financial services, ultimately fostering a more equitable economy.”
