Agricultural development and inclusive growth in India (original) (raw)

Financial Inclusion and Agricultural Development in India

International Journal of Research -GRANTHAALAYAH, 2018

In most parts of the world, especially in the developing nations, the poor face challenges that impair their conditions and limit their opportunities. In order for growth to be inclusive, it should benefit all sectors of the economy while reducing the disadvantages faced by the poor and the underprivileged, as well as ensuring equitable opportunities for all economic participants. In the context of a developing country like India where a major portion of the population is dependent on agriculture for their livelihood, agricultural development forms an important part of any growth measure. One of the many alternative strategies for attaining inclusive growth is through developing an inclusive financial system. Financial inclusion is instrumental to facilitate economic transaction, manage day-to-day resources, protect against vulnerability, improve quality of life, make productivity-enhancing investments and leverage assets. However, in the Indian agricultural scenario, financial incl...

Financial Inclusion: India towards the Sustainable Economic Growth

The government of India & RBI has out with a main initiative towards making sure the inclusive growth via financial inclusion in order to provide easy access of the banking services at an affordable cost to the vast sections of disadvantaged and low income groups. The main focus of financial inclusion in India is to promote sustainable development and producing employment in rural regions for the rural populace. Out of 19.9 crore households in India, only 6.82 crore families have access to the financial services. The primary theme of this paper is to highlight the extent & dimensions of financial inclusion, to analyse the challenges of the initiatives and to estimate the social benefit from these projects. The RBI statistics shows that as many as 139 districts suffer from huge financial exclusion, with the grownup population in keeping with department in those districts being above 20,000 and best 3 percentages with borrowings from banks. There are several factors which basically an...

Role and challenge of rural banks in the financial inclusive growth of India

Journal of Management Research and Analysis

Financial inclusion is delivery of banking services at a cheaper cost to the vast sections of under privileged and low income groups. An inclusive financial system can help in reducing the growth of informal sources of credit such as money lenders, which are often found to be exploitative. The performance of the Indian economy is one of the strongest drivers for the banking industry's growth and vice versa. This represents a massive opening that financial institutions in the country can leverage upon for future growth.

Financial Inclusion for Growth with Equity: A Case Study of Bank of India

MUDRA : Journal of Finance and Accounting, 2015

Financial inclusion promotes thrift and develops a culture of saving and also enables efficient payment mechanism strengthening the resource base of the financial institution. This benefits the economy as resources become available for efficient payment mechanism and allocation. The whole process of financial inclusion will not be possible without the contribution of banks. Banks are the key pillars of India’s financial system. Public have immense faith in banks. Banks enjoy considerable goodwill and access in the rural regions. Lending to agricultural activities and small scale industry is in the priority sector for lending of the commercial banks. The theme of the paper is to understand the inter-relationship between financial inclusion and its overall contribution to inclusive growth and the role of banks to encompass all those financially excluded into the folds of inclusive class. The study is further extended by covering the contribution of Bank of India in achieving financial...

FINANCIAL INCLUSION FOR INCLUSIVE GROWTH OF INDIA - A STUDY OF INDIAN STATES

India is one of the largest and fastest growing economies of the world, but what has been the most disturbing fact about its growth is that its growth has not only been uneven but also discrete. It has been uneven in the sense that there has been no uniformity in its growth performance and it has been discrete and disconnected with regard to growth and distribution of growth benefits to certain sectors of economy. And thus the need for inclusive growth comes in the picture of Indian economic development. However for attaining the objectives of inclusive growth there is a need for resources, and for resource generation and mobilization financial inclusion is required. It plays a very crucial role in the process of economic growth. The present paper focuses on to understanding inclusive growth phenomenon its need and financial inclusion as an instrument to attain it with reference to its extent in Indian States. The research has been done using secondary data source. Analysis of natural hierarchical grouping cluster is done considering parameters like GDP per capita, literacy rate, unemployment rate and index of financial inclusion (Johnson R.A. & Wichern D.W., 2000) on few of Indian states.

Role of financial inclusion for inclusive growth

The term "Financial Inclusion" means the transfer of banking services at a reasonable cost to the huge sections of deprived and low income group. "Inclusive Growth" by its definition implies an impartial distribution of resources with profits gained to every sections of the society. Financial inclusion and inclusive growth are the two sides of a coin. Both are interrelated and interdependent. For growth to be inclusive, all people should be come under access to financial services. In India, we can see that growth is hampered by Financial Exclusion, which is just the opposite of financial inclusion. Many a times, banking services etc. are not delivered adequately; specially in rural areas. So, there is a need to examine or verify the contribution of financial inclusion (i.e. delivery of financial services to poor) to mould the growth of India which is inclusive i.e. proper allocation of resources to every corners of the country. This paper will be studied with the help of secondary data collected from various journals, Reports, Articles, Reports of various Committees, Plans etc. We will be looking to see a positive relationship between financial inclusion and inclusive growth in India. So, let us hope that this paper reflects a true picture of India in case of access to financial services and building a strong case for inclusive growth.

FINANCIAL INCLUSION VIA AGRICULTURAL CREDIT

FINANCIAL INCLUSION VIA AGRICULTURAL CREDIT – SOME SHADES OF GREY ABSTRACT -MS ANINDITA SARDAR -SH SARAJIT SARDAR -ASSISTANT PROFESSOR -ASSISTANT PROFESSOR -DEPPARTMENT OF COMMERCE -DEPARTMENT OF COMMERCE -SERAMPORE COLLEGE -VIDYASAGAR EVENING COLLEGE “Everything else can wait, but not agriculture”- Sh Jawaharlal Nehru (1947) India’s desire to become a global superpower cannot be fulfilled until the economy grows at a consistent rate of 9 percent per annum. Achievement of this growth is possible only if agriculture (Agricultural Gross Domestic Product) grows at a pace between 5 and 6 percent per annum. Therefore agricultural sector which still accounts for over 13% of Gross Domestic Product and employs 45% of the workforce can hardly be overlooked. Dearth of finance has affected the sector for too long until 2004 when various schemes of the Government and Public Sector Banks not only increased the credit flow but also provided affordable and accessible credit to the farmers. Financial Inclusion, which is defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost (The Committee on Financial Inclusion, Chairman: Dr. C. Rangarajan), a flagship programme started by Reserve Bank of India is an attempt to fill in the aforementioned gap of finance in the agricultural sector through graduated and easily affordable and available credit. Projects like Basic Savings Bank Deposits (BSBDs), Relaxed and Simplified KYC Norms, issue of Kisan Credit Cards are to name a few. In spite of the aforesaid efforts the decline in agricultural GDP, increase in money-lenders role in agricultural finance, the spurt in farmers’ suicide are some of the many shades of grey which have posed a doubt if not question the effectiveness and efficiency of the noble programme. Keywords: Financial inclusion, agricultural credit, agricultural GDP, Kisan Credit Cards

Need of Financial Inclusion for Poverty Alleviation and GDP Growth

zenithresearch.org.in

Since last three decades the major objective of policy makers is to remove poverty from India. Many programmes and policies were started at the grass root level. But results were not very encouraging. After liberalization India"s GDP growth witnessed an encouraging change. It was hoped that it will be a solution for the problem. But due to some basic reasons at grass root level, results were not very overwhelming. It has also been realized by the policymakers that increase in GDP alone is not the solution of the deep rooted problem of poverty. Growth is necessary but not sufficient for the poverty eradication. Inclusive growth can be a solution for poverty removal. In the1990s government of India started many programmes which were specially made for enhancing the income level of the poor masses. Consequently, all the major initiatives of governmentin agricultural and rural development, in industry and urban development, in infrastructure and services, in education and health care-sought to promote "inclusive growth". It is apparent from the study that Inclusive growth is necessary for sustainable development and equitable distribution of wealth and prosperity. The success of poverty alleviation programmes can be achieved in real sense, when common man is also a part of growth.

Financial Inclusion in India – A Look

Reserve Bank of India's vision for 2020 is to open nearly 600 million new customers' accounts. The government should encourage the banks to adopt financial inclusion by means of financial assistance, financial literacy, advertisement, awareness program, etc. to achieve the aim of 11th plan of Inclusive Growth. The availability of quality financial services in rural areas is extremely important for the growth of the economy as this will enable the large number of rural households to fund the growth of their livelihoods. The growth of the economy is dependent on the growth of the rural market in the country. Therefore greater financial inclusion in these segments is imperative. The main objective of this study is to review various papers on the how financial inclusion serves as a means of inclusive growth and to study the initiatives taken by Government and Reserve Bank of India for strengthening financial inclusion in the country. The study is based on secondary data collection. Financial inclusion plays a major role in inclusive growth of the country. It is estimated that globally over 2.5 billion people are excluded from access to financial services of which one third is in India. The origins of the current approach to financial inclusion can be traced to the United Nations initiatives, which broadly described the main goals of inclusive finance as access to a range of financial services including savings, credit, insurance, remittance and other banking /payment services to all 'bankable' households and enterprises at a reasonable cost. In India, financial inclusion first featured in 2005, when it was introduced by Dr. K.C. Chakrabarty, the Chairman of Indian Bank. Mangalam Village becomes the first village in India where all households were provided banking facilities.