From Cash to Connectivity: Digital Financial Inclusion and Market Participation among Zari-Zardozi Artisans

Abstract

Micro, small, and medium enterprises (MSMEs) are the backbone of the Indian economy, contributing significantly to the generation of employment and national output. Nevertheless, a large portion of these enterprises function under the unorganized sector, where the work is informal, no financial documentation, and there are limited formal credit opportunities. Bareilly’s Zari-zardozi industry is an example of such an unorganized MSME. It is a culturally rich sector, dominated by Muslim artisans, but it is economically fragile, characterized by low earnings, delays in receiving payments, and heavy dependence on cash-based transactions. These further create structural issues, limiting business growth and making financial stability difficult.