India's inclusive growth - an approach based on TOPSIS method

Abstract

This study analyses the achievement of 32 Indian states and union territories in the inclusiveness of financial system, their relative position, major emerging trends and computes the rate of growth during a period of 2000-2001 to 2016-2017. The level of inclusion is determined using technique of order preference by similarity to ideal solution (TOPSIS) method and growth rate is computed by log linear regression model. The results indicate that states and union territories have secured different level of inclusiveness of financial system. While the situation has seen tremendous improvement in approximately 20% states/union territories, it has faced significant decline in 13% states/union territories. There is no robust change in as many as 70% states/union territories. These dynamics in the extent of financial inclusion will act as a guide in policy formulation by concerned authorities.