FINANCIAL INCLUSION IN INDIA: AN OVERVIEW OF THE NORTH-EASTERN STATES

Abstract

The primary objective of financial inclusion is to provide the disadvantaged group people with basic financial services at an ease and affordable cost. India although, achieving heights of financial inclusiveness, is challenged by continuous inter-regions disparities. To access the existing situation of the North-Eastern regions of India, which is less developed and geographically isolated than its counterparts. The study analyses 3 dimensions namely- availability, accessibility and uses of financial services and amalgamating them into an extensive and multidimensional financial inclusion index. The empirical result of this study shows that Tripura is most financial inclusive state among all the eight states of North-Eastern region of India followed by Meghalaya and Sikkim. However, the extent is poor in Mizoram, Assam, Arunachal Pradesh, Manipur and Nagaland as exhibited by lower financial inclusion index (FII).