Exploring Gender Disparities in Financial Inclusion in India: Evidence from the Global Financial Inclusion Index

The financial inclusion survey conducted by the Gallup Foundation in collaboration with the World Bank reveals significant differences in financial inclusion between men and women in India. Understating the determinants of financial inclusion among both men and women in India is crucial for inclusive financial inclusion policy. This article aims to understand the determinants of financial inclusion using the Global Financial Inclusion Index database for both genders in India. We find notable differences in the factors influencing financial inclusion between men and women. Specifically, women are less likely to be financially included compared to their male counterparts and are more likely to rely on informal sources for saving and borrowing. Using the probit estimation procedure and various model specifications, we show that there are significant differences in the determinants of financial inclusion for males and females in India. These findings underscore the need for different policies designed to promote formal financial inclusion among women in India. JEL Codes: C25, G21, J16, E21