Impact of Financial Inclusion on Net Value Added by Economic Activity

The study intends to analyze the impact of Financial Inclusion (FI) as viewed from the number of branches and access points of the Indian Post Payment Bank (IPPB) on the Net value added (NVA) by economic activities from banks and the insurance sector. The panel data model (PDM) is used to analyze the data of 19 states collected from 2019 to 2021. Findings indicate a positive impact of FI on NVA, suggesting an increase in the usage of IPPB as a tool of inclusion. This study has its own set of limitations. Certain states are not included in this study due to data unavailability, a shortcoming suggested to be resolved in the future by further studies. To the updated knowledge of authors, the inclusion of the insurance sector along with banks for consideration of NVA as an impact of FI is undertaken for the first time in this study.