Breaking the Divide: Empowering Women and Attaining Sustainable Development Goal 5 Through Digital Financial Inclusion

This study seeks to examine the relationship between digital financial inclusion, Sustainable Development Goal 5 (Gender Equality), and women’s empowerment in Jharkhand, India. The study used indicators for Digital financial inclusion (e-transactions) and Sustainable Development Goal 5 (SDG 5) (female-to-male labor force participation rate). The data were sourced from the Jharkhand Economic Survey report and the e-taal portal. The period of study was 2014-2022. The Augmented Dickey-Fuller test, Pearson correlation, regression, and lagged regression were employed to analyze the stationarity of the data, the relation, impact, and temporal effect between the variables. There was a moderate positive correlation between digital financial inclusion (in terms of e-transactions) and sustainable development goal 5 and women’s empowerment (in terms of female-to-male labor force participation rate). However, regression analysis indicates that digital inclusion alone explains only a small fraction of the variation. The lagged regression model highlights an immediate impact of digital financial services on SDG 5. The study emphasizes the need for comprehensive and transformative interventions. Mere access to banking services does not have the full potential to remove gender disparity in Jharkhand’s patriarchal society.