International Journal of Social Science & Economic Research
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Title:
FINANCIAL INCLUSION AND ECONOMIC GROWTH IN INDIA: AN EMPIRICAL ANALYSIS OF FEEDBACK MECHANISM

Authors:
Tanya Nautiyal, Dr. Saba Ismail

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1Tanya Nautiyal, 2Dr. Saba Ismail
1. Research Scholar, Department of Economics, Jamia Millia Islamia, New Delhi.
2. Assistant Professor, Department of Economics, Jamia Millia Islamia, New Delhi.

MLA 8
Nautiyal, Tanya, and Dr. Saba Ismail. "FINANCIAL INCLUSION AND ECONOMIC GROWTH IN INDIA: AN EMPIRICAL ANALYSIS OF FEEDBACK MECHANISM." Int. j. of Social Science and Economic Research, vol. 4, no. 6, June 2019, pp. 4078-4093, ijsser.org/more2019.php?id=311. Accessed June 2019.
APA
Nautiyal, T., & Ismail, D. (2019, June). FINANCIAL INCLUSION AND ECONOMIC GROWTH IN INDIA: AN EMPIRICAL ANALYSIS OF FEEDBACK MECHANISM. Int. j. of Social Science and Economic Research, 4(6), 4078-4093. Retrieved from ijsser.org/more2019.php?id=311
Chicago
Nautiyal, Tanya, and Dr. Saba Ismail. "FINANCIAL INCLUSION AND ECONOMIC GROWTH IN INDIA: AN EMPIRICAL ANALYSIS OF FEEDBACK MECHANISM." Int. j. of Social Science and Economic Research 4, no. 6 (June 2019), 4078-4093. Accessed June, 2019. ijsser.org/more2019.php?id=311.

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Abstract:
Sustainable and Inclusive growth involves participation of all sections of society. Financial Inclusion is a major step towards achieving inclusive growth and sustainable development. The objective of the study is to analyze the extent of financial inclusion in various regions and compare the region wise financial inclusion score of India. It will also compare the decadal changes in the structure of Institutional and Non-Institutional Rural credit in India. The study was conducted through collection of secondary data from Crisil Inclusix reports and PMJDY (Pradhan Mantri Jan Dhan Yojana) reports and RBI (Reserve Bank of India) official website. Empirical analysis has been undertaken using panel data econometrics. Descriptive analysis suggests that South region leads in financial inclusix score whereas North-east states are on the lowest scale. Panel data analysis tests supply-leading and demand-following hypothesis. The study accepts both the hypothesis in case of India. However, evidences of demand-following hypothesis are stronger than the supply-leading hypothesis. Finally, the study suggests that Government of India and Government of each state should make efforts to reach all the rural sections of India and increase financial literacy among the rural people of India.

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