Topic: Inclusive growth and issues arising from it.
4) An inclusive financial ecosystem is quintessential to the social contract. Critically evaluate the success of recent government initiatives in strengthening and deepening financial inclusion in India. (250 Words)
Why this question?
Financial inclusion is in news since 2014 thanks to various initiatives and policy decisions. It’s directly related to syllabus and an important issue for Mains this year (why? last year there was no question on these initiatives, this year UPSC might ask. There was a question on inclusive growth growth though)
Key demand of the question:
Evaluate, i.e. assess performance of various initiatives in strengthening and deepening financial inclusion in India. Be objective – write both positives and negatives.
Critically evaluate: Objectively assess performance of various schemes in strengthening and deepening financial inclusion. You need to provide data compulsorily when it’s asked to evaluate.
Structure of Answer:
In the introduction, write about importance of financial inclusion for India’s economy and also for government’s various efforts to develop India.
In the body, divide answer into various parts such as Jan Dhan Yojana, Digital India etc and evaluate their contribution towards financial inclusion. No need to divide as ‘strengthening’ and ‘deepening’ – both mean same (more or less). Write about CRISIL Inclusix and use its data to substantiate.
In the conclusion, write how financial inclusion can aid inclusion growth and strengthen social contract.