Financial Development and Inclusive Growth: Impact of Government Intervention in Prioritised Credit

Vighneswara Swamy

Zagreb International Review of Economics and Business, 2010, vol. 13, issue 2, 55-72

Abstract: Equitable growth is indeed vital for inclusive growth which in turn can lead to sustainable growth. Access to finance by the poor is a prerequisite for poverty reduction and sustainable economic development. This study has established that there is a strong need to strengthen policy approach for financing the priority sector in India as it has had a positive impact on inclusive growth. In view of the strong relationship between priority sector lending and inclusive growth, it is imperative on the policy makers in general and the governments in particular to make efforts to induce the banks and financial institutions in increasing priority sector lending beyond the stipulations laid down

Date: 2010
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