Analysis of Financial Inclusion in India: A Comparative Study of Selected Countries

Abstract

The importance of financial inclusion in economic and financial discourse has piqued the interest of academics and practitioners alike. Financial inclusion is viewed as a tool for poverty reduction around the world, and it is now on the agenda of all policymakers in both rich and developing nations. The current study explores the amount of financial inclusion in various nations across the world to highlight the importance of financial inclusion and give insight into the level of financial inclusion globally. Using four metrics from the World Bank Global Findex database 2021, this study assesses the extent of financial inclusion in India, the G20, and SAARC nations. The findings show that India performed better than the global average in terms of account ownership, but it was in the bottom half of G20 nations in terms of account ownership, citizen borrowings, and savings. When compared to the G20 and SAARC countries, India had a very tiny average proportion of borrowings. Government payments in the case of G20 nations were the highest and this statistic was relatively lower in the case of India. A similar pattern was also observed in the case of savings by the citizens. Outcome of the study will go a long way in improving the quality of financial inclusion initiatives so that desirable ground level benefits are realized. Findings of the study will not only provide an assessment of the present situation but also provide vital clues for steering relevant and effective policy measures.