Bridging the gap: Factor analysis of financial inclusion and economic empowerment of rural and tribal women in Tamil Nadu

This study explores the role of financial inclusion in empowering rural and tribal women across eight districts in Tamil Nadu. Using exploratory factor analysis, it identifies key dimensions. such as accessibility, availability, and usage of banking services, that significantly influence socio-economic development. A sample of 384 respondents provided insights into how access to formal financial services enhances independence, confidence, and decision-making among women. The research categorizes the financial inclusion experience into seven exogenous and six endogenous factors, including approachability, information access, usage patterns, social upliftment, and economic stability. Findings reveal that inclusive financial practices improve living standards, reduce dependency on informal credit, and facilitate participation in community and economic activities. Despite initiatives like SHGs, PMJDY, and Kisan Credit Cards, barriers remain, especially in remote areas. The study emphasizes the need for district-specific, technology-driven strategies to bridge inclusion gaps. Financial inclusion emerges not only as a policy tool but also as a catalyst for gender equity and sustainable rural development.