Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. (150 words) [2022]
Inclusive growth is defined as economic growth that is broad-based and benefits all segments of society, including the poor and disadvantaged. It is possible for inclusive growth to occur under a market economy, provided that certain conditions are met. These conditions may include the presence of strong and effective institutions, the provision of basic social services and infrastructure, the promotion of competition and innovation, and the adoption of policies that address inequality and poverty.
Financial inclusion is an important component of inclusive growth in India. Financial inclusion refers to the availability and accessibility of financial services to all segments of the population, including the poor and disadvantaged. Financial inclusion is important for achieving economic growth in India for several reasons. Firstly, it helps to facilitate access to credit and financial resources, which can help to stimulate economic activity and increase productivity. Secondly, it helps to increase the financial literacy and awareness of the population, which can help to improve financial decision-making and increase the efficiency of financial markets. Finally, it helps to reduce poverty and inequality by providing access to financial services to those who may otherwise be excluded.
Overall, financial inclusion is an important component of inclusive growth in India, and can help to facilitate economic growth by increasing access to financial resources, improving financial literacy and awareness, and reducing poverty and inequality.
