Inclusive financial system is a key to sustainable development and growth of a nation wherein all segments of the society have timely access to financial services at an affordable cost. It facilitates safe custody of savings, availability of loan for multiple purposes, diversification of risk through investment in different avenue, coverage of risk through various insurance products, etc., which make the life of people easier and comfortable. Therefore, inclusive finance leads to prosperity and economic growth by eliminating or minimizing poverty, unequal distribution of income and dominance of indigenous bankers. Financial inclusion is not a single dimension that can be achieved directly; rather, it is a process which completes after different dimensions such as access to and usage of financial services and banking penetration are accomplished. The present study considers three main dimensions of financial inclusion: usage, penetration and accessibility. The purpose is to observe how financial inclusion is linked with economic growth in India. Spread over 2005 to 2017, the study uses Bayesian vector auto-regression model to explore the linkage of economic growth with financial inclusion and its different dimensions (accessibility, penetration, and usage). The findings show a considerable relationship between economic growth and the usage dimension of financial inclusion in India. As far as financial inclusion index is concerned, it does not explain economic growth significantly. This study is based on recent data extracted from IMF and World Bank databases. The study is useful for policymakers and banks to frame appropriate policies to achieve complete financial inclusion that would lead to a robust growth of an economy.

Purpose This study aims to evaluate the financial performance of the textile industry in Haryana located in the northern part of India. Design/methodology/approach Input-oriented Cooper, Charnes and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) techniques of data envelopment analysis, as well as the return to scale (RTS) technique, were used to conduct the analysis. Findings The findings show that textile units in Haryana have hugely underperformed financially with a consolidated technical efficiency score of only 0.35. Both private and public limited textile companies with respective scores of 0.46 and 0.24 are technically efficient. Public limited textile companies are more efficient than private limited companies. Private limited textile companies need to increase their input scale because they are operating at an increasing return to scale while public limited textile companies have to lower their input scale because most companies are operating at a decreasing return to scale to enhance their efficiency. Originality/value The study can assist in decision-making to all key stakeholders (Shareholders, management, government, tax authorities, debtors and creditors, among others) by identifying efficient and inefficient companies. Appropriate policies can be framed based on that knowledge.

A sound financial system is a prerequisite for the inclusive and stable development of an economy, especially it plays a key role in dealing with the menace of inequality in income distribution. Economic policies including monetary and fiscal policy framed by the policymakers influence the accessibility to the financial resources by the poor. This study intends to examine the relationship between financial development and income inequality in India over the period 1973 to 2015. To analyze this relationship, the financial development index was constructed using the PCA approach. The study also checks the presence of the Greenwood–Jovanovich (GJ) hypothesis in the Indian economy. In this study, the ARDL Bound testing procedure is followed to assess the impact of financial development on income inequality. Besides financial development, the impact of economic development and government expenditure is also observed. Results confirm the existence of an inverted U-shaped linkage between financial development and income inequality in India, whereas economic development deteriorates the gap between the income of poor and rich. Furthermore, a U-shaped relationship between government expenditure and income inequality is revealed in this study. The findings of this study may provide new insight to the policymakers for framing suitable economic policies to encourage sustainable development in India.

The Micro, Small and Medium Enterprises (MSMES) have always been considered as growth engine of the Indian economy. MSMES are well known for its lower investment and technology requirement. After agriculture, this sector holds second position in generating employment opportunities in Indian economy. MSMES also enhance industrialization in rural and backward area thereby reduce regional imbalances and assure equitable distribution of national income and wealth. Despite its contribution and significance in the Indian Economy, the MSME sector has been facing various hurdles since long. After the liberalization and globalization in India since 1991, this sector is facing keen competition from domestic organizations as well as from the MNCS because of the improved technology in the market. This present paper deals with growth and development of MSMES in India and also highlight the problem and prospects of MSMES in India.

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