Credit Guarantee Scheme for Microfinance Institutions-2.0 (CGSMFI-2.0)
- Context: The Government of India has introduced CGSMFI-2.0 with a total corpus of ₹20,000 crore.
About CGSMFI-2.0
- The scheme aims to offer credit guarantee support to eligible Member Lending Institutions (MLIs) so they can finance NBFC-MFIs and other MFIs, which in turn provide loans to new and existing small borrowers.
NBFC-MFI Definition
- These are non-deposit taking NBFCs that must allocate at least 75% of their assets to microfinance loans, which are collateral-free loans given to households with an annual income of up to ₹3 lakh.
Management
- The scheme is administered by the National Credit Guarantee Trustee Company (NCGTC), which is fully owned by the Department of Financial Services under the Ministry of Finance.
Duration
- It will remain in force until June 2026 or until guarantees worth ₹20,000 crore are issued, whichever comes first.
About Microfinance
- Microfinance involves providing small-scale financial services such as loans, savings, and insurance to individuals and small enterprises who do not have access to formal banking systems.
Significance of Microfinance in India
Financial Inclusion and Poverty Reduction
- It bridges the gap left by traditional banking institutions by integrating low-income populations into the formal financial sector.
Support to MSMEs and Entrepreneurship
- It promotes small businesses by offering customized loans without requiring collateral.
Women Empowerment
- Women make up around 95% of borrowers in the microfinance sector, highlighting its role in improving their economic independence (Economic Survey 2025–26).
Index of Eight Core Industries
- Context: The growth rate of the Index of Eight Core Industries (ICI) declined to 2.3% in February (year-on-year), compared to 4.7% in January.
- The Index of Eight Core Industries (ICI) is released by the Office of Economic Advisor, under the Ministry of Commerce and Industry.
Sectors Showing Growth
- Cement production increased by 9.3%
- Steel output rose by 7.2%
- Fertilizer production grew by 3.4%
- Coal production went up by 2.3%
- Electricity generation saw a marginal rise of 0.5%
Sectors Showing Decline
- Crude oil production decreased by 5.2%
- Natural gas output fell by around 5%
- Petroleum refinery products recorded a slight decline
Current Facts- India imports 60% of its overall LPG requirements, of which 90% is routed through the blockaded Strait of Hormuz.
- India is the fourth largest buyer of natural gas in the world, with an imported supply of 261 lakh metric tonnes in 2025.
