This chapter provides an overview of financial inclusion, with a particular focus on India. It begins by establishing the role of the financial sector in economic development and the importance of financial inclusion in enhancing household welfare. The chapter outlines the four core pillars of financial inclusion—credit, savings, insurance, and remittances—highlighting their relevance to low-income and self-employed households. It then situates India’s experience within global financial inclusion efforts, discussing the evolution of the G20 Financial Inclusion Action Plans and the emergence of Digital Public Infrastructure (DPI) as a transformative framework for service delivery. Special emphasis is placed on India’s initiative and leadership in initiating a digital finance ecosystem in the global south. Despite significant progress, persistent gaps in usage, regional disparities, and demand-side constraints remain in India. The chapter concludes by outlining the book’s objective: to examine these gaps through both macro-level and micro-level analyses, thereby offering one of the most comprehensive evaluations of financial inclusion in India.

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Theory and Practice of Financial Inclusion: A Focus on India

  • Shika Saravanabhavan,
  • Meenakshi Rajeev

摘要

This chapter provides an overview of financial inclusion, with a particular focus on India. It begins by establishing the role of the financial sector in economic development and the importance of financial inclusion in enhancing household welfare. The chapter outlines the four core pillars of financial inclusion—credit, savings, insurance, and remittances—highlighting their relevance to low-income and self-employed households. It then situates India’s experience within global financial inclusion efforts, discussing the evolution of the G20 Financial Inclusion Action Plans and the emergence of Digital Public Infrastructure (DPI) as a transformative framework for service delivery. Special emphasis is placed on India’s initiative and leadership in initiating a digital finance ecosystem in the global south. Despite significant progress, persistent gaps in usage, regional disparities, and demand-side constraints remain in India. The chapter concludes by outlining the book’s objective: to examine these gaps through both macro-level and micro-level analyses, thereby offering one of the most comprehensive evaluations of financial inclusion in India.