Finance Minister Nirmala Sitharaman has presented the Economic Review for the financial year 2023-24 in the Lok Sabha. This economy survey has said that the Indian economy will maintain a strong pace. Real GDP has been estimated to be between 6.5% to 7% for the current financial year. It has also been said that digital infrastructure has now become the wheel of development of the country. Not only this, it is playing a big role in financial inclusion.
Financial inclusion is not just a goal
The Economy Survey states that financial inclusion is not just a goal but also a means to sustainable economic growth, inequality reduction and poverty eradication. The United Nations (UN) has positioned financial inclusion as a key enabler of other development goals in the 2030 Sustainable Development Goals (SDGs). Financial inclusion can enhance overall economic growth and facilitate the achievement of various SDGs.
Everyone benefits from financial inclusion
The government has prioritized providing financial services to the last mile. According to the World Bank’s Global Financial Inclusion Database, India has made significant progress in its financial inclusion goals over the last ten years. The number of adults with an account in a formal financial institution increased from 35 percent in 2011 to 77 percent in 2021. Based on bank account data and correlation with GDP per capita, one estimate is that if India had relied solely on traditional means, it would have taken 47 years to achieve the target of 80 percent of adults having a bank account. Digital loans have emerged as a powerful medium for individuals and firms to develop economic opportunities. It can become a powerful medium for inclusive growth.
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