Need of Financial Inclusion for Poverty Alleviation and GDP Growth

Since last three decades the major objective of policy makers is to remove poverty from India. Many programmes and policies were started at the grass root level. But results were not very encouraging. After liberalization India's GDP growth witnessed an encouraging change. It was hoped that it will be a solution for the problem. But due to some basic reasons at grass root level, results were not very overwhelming. It has also been realized by the policymakers that increase in GDP alone is not the solution of the deep rooted problem of poverty. Growth is necessary but not sufficient for the poverty eradication. Inclusive growth can be a solution for poverty removal. In the1990s government of India started many programmes which were specially made for enhancing the income level of the poor masses. Consequently, all the major initiatives of government – in agricultural and rural development, in industry and urban development, in infrastructure and services, in education and health care – sought to promote "inclusive growth". It is apparent from the study that Inclusive growth is necessary for sustainable development and equitable distribution of wealth and prosperity. The success of poverty alleviation programmes can be achieved in real sense, when common man is also a part of growth