Financial Inclusions in India

Recently India has taken several steps towards financial inclusion for achieving faster inclusive growth. This study seeks to examine the achievement of the Indian states regarding the financial inclusion. Applying the methodology of Rotated Principal Component Analysis this study has computed a comprehensive measure of financial inclusion for each state. For this analysis ten indicators of financial Inclusion have been considered. This study has used the data published by the Reserve Bank of India (RBI) and the Government of India. Ranks of the states in accordance with the Composite score show that although the state of Goa is the best, most of the states in southern region have performed better in terms of financial inclusion. However, the levels of financial inclusion of the states in India have a low mean and high disparity. This study has revealed a strong positive association between the human development and the financial inclusion of the states in India