Analysis of Financial Inclusion for Economic and Social Development

With the progress of the Indian economy, especially when the focus is on the achievement of sustainable development, there must be an attempt to include maximum number of participation from all the sections of the society. But the lack of awareness and financial literacy among the rural population of the country is hindering the growth of the economy as majority of the population does not have access to formal credit. Financial inclusion enables improved and better sustainable economic and social development of the country. It helps in the empowerment of the underprivileged, poor and women of the society with the mission of making them selfsufficient and well informed to take better financial decisions. As the majority of the rural population is still not included in the inclusive growth, the concept of financial inclusion becomes a challenge for the Indian economy. Inclusive growth is possible only through proper mechanism which channelizes all the resources from top to bottom. This research paper aims to analyse the effect of financial inclusion on economic and social development of India.