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Financial inclusion and economic status of the states of India: An empirical evidence
Author(s) -
Ghosh Shantanu,
Sahu Tarak Nath
Publication year - 2021
Publication title -
economic notes
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.274
H-Index - 19
eISSN - 1468-0300
pISSN - 0391-5026
DOI - 10.1111/ecno.12182
Subject(s) - financial inclusion , equity (law) , economics , consolidation (business) , development economics , demographic economics , finance , political science , financial services , law
Financial inclusion, especially for a developing nation like India, plays a vital role in framing policies to ensure the development of the underprivileged. Applying the maximum–minimum technique for normalization and inverse of the Euclidean distance for consolidation, the present study attempts to construct an index of financial inclusion across all the states and union territories of India for 2003–2018. It further explores the effect of regional classifications and productivity on the achievement of financial inclusion. Analysis suggests Chandigarh be placed at the top in terms of mean financial inclusion scores for the study period. In addition, comparison among the regional classifications advocates for significant differences. Whereas the difference between the groups based on productivity remains nonsignificant. Theoretical propositions expect uniform achievement in financial inclusion among the states of a country. However, certain macroeconomic and other factors seem to reduce the esteemed equity.