Economic Measurement and Analysis of Financial Inclusion in Odisha Dr. Mohapatra Siba Prasad1, Dr. Kamilla Usha2 1Assistant Professor (Finance), Institute of Management and Information Science, Vivekananda Marg, Bhubaneswar-751002 2Associate Professor (Economics), Institute of Management and Information Science, Vivekananda Marg, Bhubaneswar-751002 Online published on 5 September, 2013. Abstract The Eleventh Five Year Plan has explicitly stated ‘Inclusive Growth’ as its objective, given the trend in declining share of institutional credit in total credit since 1991–92. So, focus on comprehensive financial inclusion has undoubtedly become an essential pre-requisite for achieving current policy stance of ‘Inclusive Growth’ and for accelerating economic growth by moving the wealth effect towards a neutral domain through provision of basic financial services at affordable prices to the weaker sections of the society. Odisha being one of the poorest states of the country has its development indicators like literacy rate, infant mortality rate, state per-capita income etc. considerably lower than the national averages. So, financial inclusion fits in best in the state for significant improvement in these development indicators. This paper attempts to make a comprehensive study of financial inclusion in rural Odisha since its inception in the state by firstly studying the current status of financial inclusion in Odisha considering the geographical and demographic penetration of banking services in rural Odisha. Subsequently, an attempt has also been made to measure financial inclusion in terms of a monitorable Financial Inclusion Index (FII) and also presents a regression analysis by identifying the causative factors that influence financial inclusion in Odisha, using select parameters. The paper ends by suggesting future strategies to ensure that rural credit from institutional sources achieves vital coverage and expands financial inclusion in a big way in the state in the years ahead. Top Keywords Financial Inclusion Index, Financial Inclusion widening, Financial Inclusion deepening. Top |