Role of Micro Finance and Financial Inclusion in Inclusive Growth

"Inclusive Growth" is not a unique concept and it got importance in 11th five year plan. The architectures of planning have been giving due importance to Growth with Social Justice and Equal Opportunities for All in all five year plans. To achieve growth with social justice and equal opportunities for all, the respective governments have been allocating sufficient financial resources to priority sectors since first five year plan. At the very beginning of five year plans, the father of Indian industrial economy and the first prime minister of independent India Pundit Jawaharlal Nehru has given at most importance to agriculture in the first five year plan and allocated nearly 31% of total funds. The planners realized the importance of agriculture for the growth of the nation. Still nearly 63% of the population depends on agriculture for their survival and nearly 70% of the population lives in rural areas. Not only in the first five year plan, but in each five year plan the government has been giving due importance to agriculture by allocating adequate financial resources keeping in mind the importance. Though the government has been giving importance to various priority sectors like agricultural development, small and medium scale industrial development, development of infrastructure, poverty eradication programs and increased expenditure on social sectors like education, health, women development etc., we are unable to achieve the targets laid down in the each five year plan. Let us discuss in detail the areas for not achieving the targeted growth rate.