A Study on Impact of Financial Inclusion on Inclusive Growth in India

Abstract

Inclusive growth is the buzzword for the developing economies like India. After three decades of the post-liberalisation period we have to think whether our economic growth is really inclusive. The disparities or inequalities in income, education, health, drinking water, sanitation and shelter are still remaining a barrier to inclusive growth. Besides, gender-gap or male-female discrimination still cannot be eradicated from the society. The 11th Five Year Plan (2007-12) chartered a strategy for inclusive growth to bridge the divisions between ‘haves’ and ‘have not’. Financial inclusion is the key strategy to achieve inclusion growth. In August 2014 the Modi Government launched a financial inclusion programme, PMJDY, with the view to reach several necessary financial services to the remotest area at an affordable cost. Inclusive financial system mobilises more productive resources leading to economic growth and better opportunities for reduction in poverty. In this backdrop, the present paper focuses on the extent of financial inclusion, need of inclusive growth and impact of financial inclusion on inclusive growth in India.