Credit Risk Management Strategies for Enhancing Financial Inclusion in Viksit Bharat 2047

Abstract

Financial inclusion is pivotal for equitable economic growth and sustainable development. In the context of Vikshit Bharat 2047—India’s vision to transform into a developed, inclusive, and resilient economy by 2047—credit accessibility for disadvantaged populations remains both a linchpin and a risk-intensive challenge. Traditional lending paradigms often exclude the financially underserved due to higher perceived credit risk, information asymmetry, and lack of collateral. This research investigates contemporary credit risk management strategies that financial institutions can adopt to expand inclusive credit access without disproportionate risk exposure. Employing a mixed-methods research design anchored in empirical data, theoretical frameworks, and case study evidence, the paper delineates innovative risk mitigation mechanisms, technology-enabled credit assessment models, and policy interventions aimed at balancing credit inclusivity with financial stability. The study concludes with strategic recommendations for policy makers, regulators, and financial service providers to operationalize credit risk frameworks that are both inclusive and resilient—catalyzing the realization of Vikshit Bharat 2047.