Significance and Impact of Financial Inclusion on Indian Economy: An Empirical Study

Abstract

Purpose: This research is an attempt to assess the current state of financial inclusion empirically, its significance and impact in the Indian context. Methodology: The present study examines the impact of financial inclusion on the economic growth of India. A multiple regression model was developed based on secondary data from 2010-11 to 2019-20. Findings: The results of the study found a positive as well as a significant impact on the total number of transactions through ICT-A/Cs-BC and the number of basic saving bank deposit account (BSBDA) on the GDP of India. Hence, the study concludes that financial inclusion has a significant impact on the growth of the Indian economy. Practical Implications: The concept of financial inclusion in the context of macroeconomics gives researcher innumerable opportunities to explore. The paper allows future researchers an opportunity to study the change in financial behaviour of the people after being financially included, to discuss the technicalities and dynamics of our financial inclusion indicators, and to suggest policymaking that may align for successful implementation of financial literacy, Originality/ Value: Financial inclusion aims to include each individual in the financial framework of the country. It focuses on the accessibility and affordability of banking services for everyone irrespective of their financial status. This study by and large analyses the quantitative aspects of financial inclusion, its impact and significance on the Indian economy from the empirical research point of view.