India’s microfinance sector has seen a sharp rise in operations during the last decade. The sector is large in terms of its lending and reach the size of the sector. This study presents an analysis of the contribution of the microfinance sector to the overall economy in terms of income or ‘Gross Value Added’, a measure of the national economic output and employment. It also provides a review of the profile of borrowers of microfinance, including both households and enterprises. The study also assesses the impact of microfinance credit on poverty reduction, micro-enterprises, women’s empowerment, and non-economic benefits based on a review of previous research