Financial inclusion, economic growth and mobile telephony in India: analysing the nexus

ABSTRACTUsing data on major Indian states, the paper analyses the impact of AIM (Aadhaar, Inclusion and Mobile) trinity on economic growth. The evidence suggests that mobile penetration exerts a positive and statistically significant impact on economic growth. In addition, there exist strong complementarities between mobile telephony and financial inclusion. In addition, the evidence points to the fact that biometric identification process (Aadhaar) is making its impact felt on financial inclusion, primarily by improving financial access.