Financial inclusion plays a pivotal role in economic growth and social development, particularly in emerging economies like India. It ensures that individuals and businesses have access to essential financial services, fostering economic stability and reducing disparities. While several studies have attempted to measure financial inclusion, most rely heavily on supply-side indicators, such as the number of bank branches and ATMs, which do not fully capture the accessibility and usage of financial services at the individual level. This paper proposes a Multidimensional Financial Inclusion Index (MFII) tailored to India, incorporating both demand- and supply-side indicators through a descriptive analysis approach. The proposed index evaluates financial inclusion across different states based on key dimensions, including banking penetration, availability of financial services, digital transactions, credit accessibility, and financial literacy. The study highlights regional disparities in financial access and usage, with some states demonstrating significantly better financial inclusion than others. These findings emphasize the need for targeted policy measures, such as improving digital infrastructure, promoting financial awareness, and expanding credit facilities for underserved populations. The study contributes to the broader discourse on financial inclusion and supports efforts to bridge the gap between financial services and the unbanked population in India. Future research can refine the index further by incorporating real-time financial transaction data and assessing the impact of financial inclusion initiatives like Jan Dhan Yojana and Digital India.