Economic Growth: The True Catalyst for Financial Inclusion

Economic growth naturally drives financial inclusion by generating jobs and opportunities, as highlighted by Chief Economic Adviser V Anantha Nageswaran. At the Global Inclusive Finance Summit, he emphasized that finance complements growth and should focus on strengthening real economic activities, as seen with India's PM SVANidhi scheme.

Chief Economic Adviser V Anantha Nageswaran emphasized that robust economic growth is the most effective driver of financial inclusion, speaking at the Global Inclusive Finance Summit. He asserted that economic dynamism naturally integrates people into financial systems by providing jobs and opportunities.

Nageswaran highlighted that financial services support but do not replace growth, warning that financial inclusion could become fragile without genuine economic expansion. He maintained that finance should amplify real economic activities, as demonstrated by the resilience seen among street vendors under the PM SVANidhi scheme, who have transitioned to more sustainable business models through financial access.

The adviser urged banks to integrate beneficiaries of government credit schemes into their regular portfolios and called for investors to prioritize social returns over purely financial ones. Maintaining that indiscriminate lending undermines financial inclusion's purpose, he underscored the role of inclusive finance institutions in supporting economically vulnerable populations.