Financial Inclusion: Measuring Progress in India using Wroclaw Taxonomic Method

Abstract

Financial inclusion turnsout to be the catchwordand policy challenge for all over theworld.Whilefinanceinvariablyhasbeenacknowledgedtobethelife-bloodofanyeconomic interest. “Financial inclusion” is seen as a tool that might allow fuller participationof inclined agencies including low-earnings community and weaker sections in the financialenvironment. It isa system that connectspeople to the formal financial sector. If peoplehaveeasyanddecentaccesstothe financialstructure, thatnationcanachievehighereconomicgrowth.ThispaperaimstomeasuretheprogressoffinancialinclusioninIndiaduringtheperiod2009to2018andcomputescompositefinancialinclusionindex.Toconstruct composite financial inclusionindexWroclawTaxonomicmethodisused.The results display that proportion of credit to GDP and ratio of deposit to GDP playessentialfunctiontoachievefinancialinclusion.