An Investigation into the Relationship Between Financial Inclusion and Economic Development of Indian States
DOI:
https://doi.org/10.56411/anusandhan.2024.v6i2.1-12Keywords:
Financial Inclusion, Banking Penetration, Banking Usage, Status of Financial inclusion, Index of Financial Inclusion, Economic Development Index.Abstract
The issue of inclusive growth is placed on the agenda of policy-makers across the
globe. Though the governments of various countries have been considering
financial inclusion as a weapon to combat poverty and to foster growth and
development in the economy, there is an incongruency in the inclusion-growth
nexus. This empirical study explores the relationship between these two
variables in the Indian context. The researchers collect state-level data on
parameters of economic development and financial inclusion over the period
2015 to 2020 to achieve the objective. The investigators compute a weighted
composite index for economic development and financial inclusion of different
states of India with the application of data reduction technique. The study finds a
strong positive relationship between financial inclusion and economic
development .
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