A latest study by the Indian School of Business (ISB) has shed light on the pivotal role of ‘financial inclusion’ in mitigating climate risks for rural households.
The study pointed out that ‘financial inclusion’ alleviates the need to hold liquidity, relieving the resource constraint and enabling rural households to respond better to known climate risks.
The study, conducted in the semi-arid tropics across nine States including Karnataka, Odisha, Bihar, Jharkhand, Gujarat, Telangana, Andhra Pradesh, Madhya Pradesh and Maharashtra— focuses on how access to formal financial institutions empowers rural households in vulnerable communities to navigate the challenges posed by climate change.
