Financial Inclusion and Growth of Indian Economy: An Empirical Analysis

Abstract

For the increasing growth of the economy, the main concern of the policy makers should be overall economic and social growth of the country. Most of the developing countries around the world, face scarcity of the capital, so only through financial literacy and making financial services and banking facilities approachable to the weaker section of the society the habit of saving can be generated among them and which in long run lead to the overall growth of an economy. The present study aims to investigate the relationship between financial inclusion and growth of the economy by applying multiple regression model on a data over a period of 2009-2013. Results of the study showed positive relationship between number of bank branch networks and number of ATMs in the country with the GDP growth rate of the country.