India’s particularly vulnerable tribal groups (PVTGs) face severe climate risks, which range from erratic rainfall to depleting ecosystems. They threaten their forest-based livelihoods and health. MSC engaged directly with people from the Juang, Korwa, and Sahariya communities across three Indian states to understand their challenges and identify actionable adaptation strategies. Our findings show that traditional coping mechanisms are no longer sufficient, and community-driven adaptation plans must be paired with support from local governments, CSOs, and financial institutions for long-term resilience.
Read the full report to explore insights and solutions.
As artificial intelligence rapidly reshapes our world, ensuring its development is fair, transparent, and inclusive is more important than ever.
This policy brief advocates for investments in open-source AI as a public good. It presents a roadmap for the G7 to build a competitive and responsible AI ecosystem through four key policy recommendations: expansion of open access to data, support for sustainable governance, policy alignment across nations, and local capacity building.
Read on to know how the G7 can shape a more open, fair, and future-ready AI ecosystem.
India’s tribal communities, long reliant on traditional knowledge, are struggling as climate change outpaces their ability to adapt. Erratic rains, shrinking forests and soil loss threaten not just livelihoods but entire ways of life. Locally-led adaptation offers a way forward by placing communities at the centre of climate action. Grassroots efforts — like Nagaland’s Zabo system and Gujarat’s Bhungroo method — show promise. Scaling such models through programmes like PM JANMAN could strengthen climate resilience, if grounded in community voices.
The Bhil community in the Narmada district of Gujarat used to pray for rain as their village endured long dry spells for months. Yet these days, they pray for the rain not to come all at once. When the skies do open, they flood their fields, only to give way to prolonged dry spells that leave behind cracked soil and a failed harvest. What changed was not just the weather but how little help they had to deal with it. This story is similar to other tribal communities, the context may change from rainfall to excessive heat or droughts.
The lives and cultures of tribal communities across India are tied inextricably to nature. Today, people from these communities are increasingly fighting an uphill battle with climate change’s devastating impacts. When forests shrink, soil erodes, and rainfall patterns go haywire, they do not just lose crops and wage labour, they lose sacred rituals, ancestral knowledge, and the very landscapes that have shaped their identities for centuries.
For generations, these communities relied on traditional wisdom to adapt to shifts in climatic patterns, but the scale and speed of today’s climate shifts outpace those adaptation methods. Reading the skies to predict climate events is failing as weather becomes increasingly unpredictable. Shifting cultivation cycles no longer match erratic weather patterns and the soil depletes faster than it regenerates.
Rainwater harvesting, once reliable, fails amid prolonged droughts. Meanwhile, seasonal migration for work, which was once a temporary fix, is becoming permanent displacement for these people at the margins. Their valiant attempts to diversify livelihoods through craftwork, small-scale trade, or agroforestry have uncertain returns due to a shrinking resource base and the volatile nature of markets.
This is where locally-led adaptation (LLA) matters—not as a policy buzzword but as a lived reality. LLA flips the usual development paradigm. Instead of experts designing solutions in conference rooms, it puts communities at the center because they understand their land better than any outsider ever could. And then let the stakeholders pick the right strategy, including financial support.
Globally, this approach is gaining ground. In Vietnam, CARE restored mangroves by establishing community-based mangrove management boards that coordinated planning and planting activities at the community level. In the USA, the Bureau of Indian Affairs (BIA) funds tribal governments to develop climate adaptation plans rooted in Indigenous knowledge and priorities. In Australia, Aboriginal ranger groups combine ancient fire management practices with modern science to manage their lands with fire.
We need not look far. In Nagaland, the Chakhesang tribe restored soil fertility, sustained water availability, and tripled crop yields through the adoption of the Zabo system. Zabo is a century-old indigenous integrated farming method that combines water harvesting, forestry, animal husbandry, and agriculture.
There are a few other experiments led by non-tribal communities that bear some important lessons for mainstreaming LLA for climate action. One such noteworthy example is from Gujarat, where women used the Bhungroo water management system to combat seasonal waterlogging and severe droughts. This system stores floodwater underground and releases it during dry periods. To maximise farm productivity, they planted climate-resilient crops and applied modern irrigation techniques. On the social side, this intervention enabled female farmers to lead adaptation efforts and gain economic independence.
In another effort, the Government of Uttar Pradesh has developed action plans for 43 ‘Climate Smart’ Gram Panchayats (GPs), identified through a multi-criteria assessment in highly vulnerable districts. To take this to the national level, Niti Aayog is running an ongoing program with Vasudha Foundation.
Similarly, KILA (Kerala Institute of Local Administration) has supported local governments in Kerala to develop and implement Local Action Plans on Climate Change (LAPCCs)- which are blueprints for communities to tackle climate change challenges and transition towards sustainable and resilient futures.
These examples worked because they respected indigenous knowledge and practices and gave locals the tools, voice, and flexibility to adapt that knowledge to new threats. Replicating such success stories is not easy, but the moment is ripe. The Government of India’s INR 24,000 crore PM JANMAN program is a great opportunity to scale this approach. The program focuses on the socioeconomic development of 75 particularly vulnerable tribal groups (PVTG) across the country.
What makes efforts like JANMAN, Climate-smart GPs, LAPCC and other examples illustrated here different is that they signal a shift from doing things for local communities to doing things with them. While some of them work directly with the community, others work through the local institutions like GPs.
And the early signs are promising: The program adopts inclusive decision-making, community-driven planning, local capacity-building, flexibility and learning. However, the test lies in its execution. If these programs can integrate the locally led adaptation approaches, using local institutions like GPs as levers, it could transform the resilience of the local communities to climate change.
The blog was first published on Firstpost on 22nd April, 2025
Ten years on, MUDRA Yojana has sparked a quiet revolution—fueling small dreams with big impact, empowering women, uplifting villages, and proving that access to credit can rewrite India’s entrepreneurial story
While loan disbursement figures are impressive, MUDRA’s real success lies in its inclusivity
Almost 68 per cent of loan accounts belong to women, and about 51 per cent of the borrowers are from scheduled castes, scheduled tribes, and other backward classes
On a quiet morning in Manikpur village, Bihar, Ruby Devi watched as local dairy farmers lined up outside her milk collection centre. Not long ago, these farmers had to sell milk at Rs 40 per litre through intermediaries. However, that changed when Ruby secured a loan worth Rs 1.5 lakh through the Pradhan Mantri Mudra Yojana (PMMY). With the funds, she set up a collection centre that allowed farmers to sell their milk directly for Rs 55 per litre, which boosted their income by 30 per cent.
The MUDRA loan did not just fund Ruby’s business— it gave her the power to set the terms of trade in her village and improved the lives of 30 families there. Over the past decade, the PMMY has enabled thousands of microentrepreneurs like Ruby to overcome financial barriers and build sustainable businesses.
As the PMMY marks a decade since its launch on April 8, 2015, assessing its impact on India’s economic empowerment becomes imperative. The scheme, designed to “fund the unfunded,” has disbursed collateral-free loans to micro and small enterprises to address a critical gap in financial inclusion. PMMY has undeniably expanded opportunities for small businesses with more than 51.67 crore loan accounts till January 24, 2025 and a growing preference for higher loan amounts. But has it done enough to propel India’s microentrepreneurs forward?
Micro and small enterprises (MSMEs) are often hailed as India’s “growth engine,” as these encompass 6.33 crore enterprises, contribute nearly 30 per cent to the GDP, and employ millions. Yet, the biggest hurdle for these enterprises has been access to finance. High processing costs, complex documentation, and a lack of collateral have historically locked out small entrepreneurs from the formal banking system.
PMMY sought to change this. It established the Micro Units Development and Refinance Agency (MUDRA) to facilitate lending through banks and non-banking financial institutions. Through MUDRA, the government created a structured pathway for microentrepreneurs to access capital.
The scheme’s three-tiered loan structure—Shishu (up to INR 50,000), Kishore (INR 50,001 to INR 5 lakh), and Tarun (INR 5 lakh to INR 10 lakh)—ensured that businesses at different growth stages could secure funding. Recognising the evolving needs of entrepreneurs, the government introduced a new category, Tarun Plus, in 2024 to offer loans up to INR 20 lakh.
While loan disbursement figures are impressive, MUDRA’s real success lies in its inclusivity. Almost 68 per cent of loan accounts belong to women, and about 51 per cent of the borrowers are from scheduled castes, scheduled tribes, and other backward classes. This is social empowerment in action.
Moreover, MUDRA loans have played a crucial role in job creation. A Ministry of Labour and Employment survey estimated that PMMY generated 1.12 crore net additional jobs between 2015 and 2018. The scheme has also facilitated digital financial inclusion through the MUDRA Card, a debit card linked to loan accounts that allows borrowers to manage working capital efficiently.
Despite its successes, PMMY is not without challenges. Northeast India, for instance, accounts for only 4 per cent of total loan accounts, which indicates a need for greater outreach in underserved regions. Many potential borrowers remain unaware of the scheme or struggle with cumbersome application processes.
While the loans’ collateral-free nature makes them accessible, it also raises concerns about credit risk. However, improved monitoring has helped reduce non-performing assets (NPAs). Public sector banks’ NPA in the MUDRA category declined to 3.4 per cent in fiscal 2023-24 from 4.77 per cent in FY 2020-21. Similarly, private sector banks’ NPA dropped to 0.95 per cent during the same period.
For PMMY to fulfill its potential, the government must simplify documentation, expand digital loan processing, and enhance financial literacy to promote responsible borrowing and timely repayment. Reducing state-imposed costs, such as stamp duties and rent agreement charges, will further ease the financial burden on small businesses. Additionally, using digital tools for early detection of financial distress can prevent defaults and ensure long-term sustainability.
As India strives for “Viksit Bharat” by 2047, financial inclusion will remain key to fostering an entrepreneurial and self-reliant economy. MUDRA has shown that a small loan can make a big difference. However, it must go beyond disbursing credit to ensure India’s smallest entrepreneurs thrive and prosper.
The blog was first published on Pressreader on 8th April, 2025
The Hon’ble Prime Minister has repeatedly emphasized the need to ensure that the benefits of development programs reach all sections of society, particularly the most vulnerable individuals.
Efforts to drive development at the grassroots level have been made through initiatives such as the Aspirational Districts Program and the recently launched Aspirational Blocks Program. The latter aims to enhance government services in 500 Blocks across the country in health, nutrition, education, water and sanitation, agriculture, financial inclusion, and basic infrastructure. The block and gram panchayat are foundational elements of the overall structure of the federal administrative structure. At the local and panchayat levels, administrative officers hold responsibility for executing government schemes and programs. However, implementing several projects, each with its own distinct challenges, places a heavy burden on officers operating at different levels—each with different capabilities.
This note is based on our experience of working at various levels, ranging from the district to the gram panchayat level. It emphasizes three critical factors for implementers to effectively oversee development initiatives in line with the government’s goal of successful implementation and desired outcomes for welfare programs.
1) Driving inclusivity
Inclusivity in a scheme design or implementation is not a default virtue. It may overlook the most vulnerable and marginalized groups, including women, who may not have access to or may not be reached by these programs.
Strengthen Gram Panchayat Development Plan
To ensure inclusivity in program implementation, targeting multiple specific groups and setting goals for each is essential. The gram panchayat (GP) officials who are elected every five years need to be taught to be data-driven and inclusive. Such training works for GP officials, who can draft better need-based and local context-specific Gram Panchayat Development Plan (GPDP). Specific provisions are made in the XVth finance commission for GPDP regarding the allocation of funds to rural local bodies, the formation of State Finance Commissions (SFCs) in all states, and the appointment of nodal officers and facilitators to prepare plans. Much stress has also been given to data collection, analysis, and updating the GPDP and other related portals.
Involve groups in the planning process
To drive inclusivity, it is crucial to involve women Self-help Group members, farmer producer groups, and youth groups and utilize their increasing influence within their communities. With a collective reach of over 80 million women, SHGs hold a more excellent hold in the community than others. SHG in many states (such as Bihar’s JEEViKA and Kerala’s Kudumbashree, to name a few) are successful examples of SHG-led initiatives that various departments trust to implement schemes and reach out to communities.
2) Building implementer’s capacities
Cultivate an outcome-focused mindset
Implementers’[1] work with the output mindset, focusing on short-term results. These achievements feed into performance evaluation and appraisals, reinforcing the attention to output. However, their focus can be expanded through coaching and training to include outcomes.
The central ministries are collaborating with NITI Aayog to develop strategic plans and align them with the Output Outcome Framework. Yet, for this approach to be successful, knowledge and capacities must also be built, and insights from lower levels must be gathered by including those directly accountable for implementing the plan.
Encourage data analytics and data reporting
Data-driven decision-making is crucial for both inclusive targeting and effective implementation. It is essential for district officers to utilize data for decision-making and to enhance their skills in three key areas: first, understanding the significance of quality data; second, being able to collect and utilize disaggregated data (based on geography or gender); and third, skilfully employing data in the decision-making process concerning their development programs.
3) Fostering community engagement
Push for Jan Bhagidari
Community engagement, or Jan Bhagidari, is crucial for the success of development programs. Unless the community owns its development agenda (think education, sanitation, nutrition, health, digital payments) and makes complementary efforts, it will be easier for development programs to achieve outcomes. By working with volunteers and leveraging behavior change communication, implementers can engage the community to design and execute activities, assess needs, create awareness, and drive behavior change. However, for implementers, this requires proper selection of community volunteers, setting expectations, creating a supervision and support structure, engaging public representatives and influencers, and continuous support from development partners. We have witnessed that =incorporating the spirit of competition through incentivizing performance motivates the community and its representatives to achieve goals and promote excellence.
Streamline working with development partners
Development partners (including multilateral and bilateral agencies, donors, philanthropies, technical agencies, non-governmental organizations, and civil society organizations) often need to be more utilized by district officials. Their engagement can be more effective when development partners are assigned distinct roles and specific responsibilities with set targets and are held accountable for their work. Moreover, development partners can contribute to skill and knowledge transfer by conducting training programs for implementers and the community.
Overall, the Government can fast-track inclusive development by involving the community development partners, building implementers’ capacities towards an outcome-oriented and data-driven approach, and pushing for inclusivity in implementation.
[1] By implementers, we mean district/block-level officials
The United Nations Capital Development Fund is leading an initiative to enhance the capabilities of Financial Service Providers (FSPs) engaged in humanitarian efforts, focusing on digital payments and agent network services. Our on-the-ground assessment revealed a gap between the needs of humanitarian aid services and the current capabilities of FSPs, prompting a new pilot with MicroSave Consulting that seeks to improve the delivery of Cash Voucher Assistance in a UN World Food Programme relief operation for 65,000 people in the Somali region. Here’s what we’ve learned.
In a previous blog highlighted our team’s recent implementation of a project to digitalize Cash Voucher Assistance (CVA) in Ethiopia’s Somali Region. This second blog focuses on the lessons learned throughout the initiative implemented in partnership with MicroSave Consulting (MSC) under the Digital Finance for Resilience (DFS4Res) Programme, funded by the European Union and the Organization of African, Caribbean and Pacific States (OACPS).
The initiative emphasized the importance of well-established financial service access points, and the challenges related to distribution and the readiness of digital payment service providers. Local agents are crucial in ensuring that individuals without direct access to digital services can receive aid, which improves the efficiency, security, and financial inclusion of the cash transfer process.
Training and capacity-building efforts have strengthened the network of agents involved in delivering CVA. Key developments from this initiative include fostering connections between agency banking, business banking, and performance measurement within humanitarian assistance. While some institutions have clear business models for agency banking, many still lack awareness at the district and branch levels. The initiative has successfully onboarded over 300 new active agents with the support of the project, particularly through effective agency banking strategies.
Key Lessons
Agency Network Management Processes: Effective management is critical for advancing financial inclusion. Our approach integrates theoretical frameworks, international best practices, and on-ground findings.
Agent Recruitment and Onboarding: Recruiting reliable agents is fundamental to a robust network. Comprehensive training on banking products, service delivery standards, compliance protocols, and customer engagement strategies is essential. Successful practices are seen in countries such as Kenya and India.
Float and Liquidity Management: Maintaining transaction liquidity is crucial for operational efficiency. Effective float management involves monitoring float levels, timely cash replenishments, and providing tools for management, with successful implementations seen internationally.
Monitoring Agent Performance: Regular evaluations and continuous feedback are vital for maintaining service standards and compliance. Ongoing assessments ensure agents meet performance expectations.
Agent Support Service: Support services, including help desks and real-time troubleshooting, are essential for maintaining service quality and addressing operational challenges.
Agent Retention: Incentive structures and regular communication are key to retaining high-performing agents. Successful models in countries such as Ghana and Bangladesh illustrate effective retention strategies.
Key Developments
Periodic Reporting: Most banks have established mechanisms for monitoring agent performance, with regular reports generated by management teams.
Performance Evaluations: Continuous oversight is achieved through regular evaluations conducted by branch and digital managers, ensuring adherence to performance standards.
Key Challenges
Cumbersome KYC and Eligibility Requirements: Agents face burdensome KYC requirements slowing onboarding processes, which hinders network expansion, especially in rural areas. Many businesses are unregistered, limiting potential agents, and compliance burdens can discourage participation, particularly among women.
Liquidity Management Challenges: Agents often struggle to maintain float levels due to access issues at banks or ATMs. Insufficient cash availability during humanitarian distributions can lead to service interruptions. Additionally, agents limit transactions primarily to airtime sales due to low incentives from other cash services.
Mapping Service Delivery Points with Beneficiaries: Thorough research is needed to align financial services with the needs of beneficiaries. A lack of agents in specific areas limits service delivery, necessitating the recruitment of additional agents to ensure a sustainable ecosystem.
The training and strategy development provided by UNCDF and MicroSave Consulting, along with the efforts of banks, lay the foundation for a more inclusive financial ecosystem that enhances economic resilience among vulnerable populations. While initially piloted in the Somali region, the intervention has the potential for expansion across Ethiopia, requiring collaboration with humanitarian agencies, government bodies, and beneficiaries to streamline service delivery.
Humanitarian agencies are not only clients of financial service providers but also play pivotal roles in digitization efforts supported by policies established by DG ECHO. Moreover, telecom operators contribute to infrastructure development, ensuring access to essential services for last-mile beneficiaries.
The commitment and ongoing efforts of all stakeholders highlight the transformative potential of coordinated action in achieving broader economic development and poverty alleviation goals.
In conclusion, the insights gained from the Cash Voucher Assistance initiative in the Somali Region illustrate the necessity of fostering a well-structured financial ecosystem. While collaboration among stakeholders is essential for addressing compliance challenges and enhancing liquidity management, commitment to learning and adapting from these experiences is critical. By building on these successes, Ethiopia can serve as a model for future humanitarian interventions, ultimately contributing to poverty alleviation and economic development.
For more about the project’s context, please click here
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