Measuring Financial Inclusion: A State-Wise Impact Analysis of India’s National Mission on Financial Inclusion
This dataset contains data for 'Measuring Financial Inclusion: A State-Wise Impact Analysis of India’s National Mission on Financial Inclusion'. This dataset contains 3 files where the individual dimensional scores are calculated, and a FIS Calculation file which combines the three dimensions into one comprehensive value. Purpose: This study aims to calculate the level of financial inclusion across India’s states/ UTs and Union Territories from 2011 to 2019, to quantify the impact of India’s National Mission on Financial Inclusion (Pradhan Mantri Jan Dhan Yojana) which was launched in 2014. Approach: We utilise the Index of Financial Inclusion, which has 3 dimensions- Banking Penetration, Banking Services Availability and Banking Services Usage, comprised of sub-dimensions to capture various individual indicators of financial inclusion. This allows us to factor in the various aspects of financial inclusion into one score, which can then be used for empirical studies. Findings: We find that the National Mission on Financial Inclusion (PMJDY) has been able to accelerate the growth of financial inclusion in India, and as of 2019, 24 of India’s 31 states/UTs, considered in this paper, have been able to achieve High Financial Inclusion, with the remaining 7 achieving Medium Financial Inclusion. This represents a significant improvement over the state of financial inclusion in 2011. Originality: We have enhanced the Index of Financial Inclusion used in previous studies to include additional indicators of financial inclusion based on existing literature. The application of the measurement framework to quantify the impact of India’s National Mission of Financial Inclusion is original. The financial inclusion scores have been calculated over an extended period from 2011 to 2019.