Interrelationship Between Credit Achievement of Inclusive Growth - A State-wise Analysis in India
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Date
2013
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Abstract
Inclusive growth aims at poverty reduction and to achieve this it is
essential to broaden access to economic opportunities in terms of credit
There is a bidirectional cause and effect relationship between poverty
and credit accessibility. Credit inaccessibility causes poverty and poverty
causes low demand for credit. This paper was designed with the objectives
of analysing the trends in the percentage of people below poverty line,
trends in provisions of credit, number of branches, number of bank
accounts and analyzing the impact of credit accessibility on poverty
reduction. The study is related to the period 1990-2009. The study tried
to estimate compound growth rate of poverty and credit accessibility and
estimated Theils inequality index of credit accessibility and prevalence of
poverty. The study tried to identify the impact of credit accessibility on poverty reduction. The study found out that credit accessibility has a
significant impact on poverty reduction in many states of India. Hence, it
is essential to develop inclusive financial system for poverty reduction.