International Journal of Social Science & Economic Research
Submit Paper

Title:
FINANCIAL INCLUSION AND ECONOMIC GROWTH IN INDIA: AN EMPIRICAL ANALYSIS OF FEEDBACK MECHANISM

Authors:
Tanya Nautiyal, Dr. Saba Ismail

|| ||

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.

References
[1]. Aghion P, Angeletos G.M., Banerjee A, Manova K (2004), 'Volatility and growth: The role of financial development'. Harvard University.
[2]. Bagli, Dutta,(2012), 'A study of Financial Inclusion in India' ,Radix International Journal of Economics and Business Management, Volume 1, Issue 8, Aug., ISSN: 2277-1018.
[3]. Boyd JH, Prescott E (1986), 'Financial intermediary-coalitions',J Econ Theory 38: pp 211-232. 9.
[4]. Department of Financial services (2018), Pradhan Mantri Jan Dhan Yojana progress report.
[5]. Diamond D.W., (1984), 'Financial intermediation and delegated monitoring'. Rev Econ Stud 51:pp 393-414.
[6]. Godha, Nama (2017) "Pradhan Mantri Mudra Yojana: A new financial inclusion initiative", International Journal of Engineering Technology, Management and Applied sciences, Volume 5, Issue 3, ISSN 23494476
[7]. Goldsmith R.W.,(1969), 'Financial Structure and Development'. New Haven, CT: Yale University Press.
[8]. Gurley, J., Shaw, E., (1967), 'Financial Structure and Economic Development'. Economic Development and Cultural Change 34, pp 333--46.
[9]. Hariharan, G., Marktanner, M.,(2012), 'The growth potential from Financial Inclusion'. ICA Institute and Kennesaw State University
[10]. Jung, W.S., (1986), 'Financial Development and Economic Growth: International Evidence', Economic Development and Cultural Change 34, pp 336--46.
[11]. King RG, Levine R., (1993), 'Finance and growth: Schumpeter might be right', Q J Econ 108: pp 713-737.
[12]. Kugler M. and Neusser K., (1998), 'Manufacturing Growth and Financial Development: Evidence from OECD Countries', Review of Economics and Statistics, 80(4):pp 638- 646
[13]. Levine R., Loayza N. and Beck T., (2000), 'financial intermediation and growth: Causality and causes', Journal of Monetary Economics 46, pp 31-77
[14]. Mckinnon R.I.,(1973), 'Money and Capital in Economic Development'. Brookings Institute, Washington Shaw.
[15]. Ministry of Statistical Planning and Implementation (2003), 'National Sample Survey Organisation (NSSO) 59 Round'.
[16]. Outlook, Regional Economic,(2015), 'Sub-Saharan Africa: Dealing with the gathering clouds'. International Monetary Fund.
[17]. Sahay, R., Cihak, M., N'Diaye, P., Barajas, A., Mitra, S., Kyobe, A.,Yousefi, S. R., (2015) 'Financial Inclusion: can it meet multiple macroeconomic goals?'. International Monetary Fund issue No. 15/17
[18]. Schumpeter J.A.,(1911), 'The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest and the Business Cycle'. Harvard University Press, Cambridge.
[19]. Sethy ,(2018), 'Developing a financial inclusion index and inclusive growth in India', Volume XXIII (2016) No.2 (607), Summer ,pp. 187-206
[20]. Sharma, D., (2016), 'Nexus between Financial Inclusion and economic growth: Evidence from the emerging Indian economy', Journal of Financial Economic Policy, 8(1), pp 13- 36.
[21]. Shekhar, Miryala, (2018), 'Financial Inclusion through PMJDY Pre and Post Demonetization' available at https://www.researchgate.net/publication/329175567_FINAL_ARTICLES_ON_FI_THR OUGH_PMJDY_PREPOST_DEMONETIZATION_-_Copy_-_Copy
[22]. Srivastava, Surbhi, (2016), 'An Overview of Pradhan Mantri Jan Dhan Yojana', Indian Journal of Research, March 2016, p 317-321, ISSN-2250-1991
[23]. Standard and Poor's company (2018), 'CRISIL Inculsix- An Index to measure India's progress to Financial Inclusion', Volume 4, pp- 1-88
[24]. Suresh, A., Narayana, M. Srinivasa, Kumar, P. Vijay, (2016), 'A study on Financial Inclusion Initiatives and Challenges in India with reference to PMJDY', International Journal of Management & Social Sciences, Volume 3, Issue 3, ISSN 2455-2267

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.