Why do we need to expand formal sources of credit in India? Give three reasons.

1. To Promote Financial Inclusion: In order to ensure that all sections of society have access to credit, it is important to expand formal sources of credit in India. By increasing access to credit, more individuals and businesses are able to benefit from financial services and build their financial resilience. 2. To Foster Economic Development: Expanding access to formal credit sources is necessary for fostering economic development in India. This is because access to financial capital enables businesses to invest in new technologies, expand their services, hire additional staff, and create more local jobs. 3. To Support Small and Medium Enterprises: Small and medium enterprises are vital players in the Indian economy. Expanding access to formal credit sources helps to support small businesses and make it easier for them to borrow money and grow – something that is necessary for creating a supportive business environment in India.