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Focus Story Focus Story

Financing Financial conduct by providers, and unfavourable events, and

invest in health and education.
effective financial consumer
Similarly, for MSMEs to thrive,
protection groups.
timely and affordable credit is
Economic Inclusion for FINANCIAL INCLUSION investments, expanding
essential for making
IS CRITICAL FOR
business, and building scale.
ECONOMIC
Hence, at every level, financial
EMPOWERMENT OF
inclusion plays an important
role in reducing
THE EXCLUDED &
Growth and Economic Financial inclusion is an socioeconomic inequalities
UNDERSERVED
and promoting human
GROUPS
development. As a result,
economies with high levels of
financial inclusion tend to
Inclusion: Empowerment important tool to strengthen have stronger growth, more
the livelihoods of consumers
stability, and less inequality.
belonging to the excluded and
underserved groups and in
Recognising that financial
turn drive their economic
inclusion has emerged as a
cornerstone of social and
empowerment. Access to
Priority For B20 T he world economy, more robustly than the poor. finance, by way of credit, economic empowerment, the
savings, and insurance, for
G20 grouping has, since its
inaugural edition in
example, could enable women
to raise the necessary capital
Washington D.C in 2008,
As a result, poverty has
which has yet to fully
to foster inclusive
Provision of quality insurance
recover from the devastation exacerbated, debt to start their own business. emerged as a critical enabler
caused by the pandemic, is vulnerability has increased, products can help farmers development and is a driving
once again being confronted and inequalities have grown protect their savings and force of economic and
with fresh challenges arising across the globe. In such a smooth their consumption financial stability. This has
from the conflict in Ukraine, situation, the need to even during difficult times. resulted in the rolling out of
promote financial inclusion
I ndia’s G20 Presidency the designated B20 India disruption of global supply among the poor and access can help families to guidelines, policies, and
major financial inclusion
Besides, improved financial
chains, unprecedented global
Secretariat and has been
comes at a critical juncture
wherein geo-political tensions actively working to support debt, expected global marginalized holds special meet their consumption initiatives to promote financial
significance.
needs, insure against
inclusion across the globe.
are rising, global growth is global business interests recession, and a lot more.
slowing down, inequality is through the B20 India Financial inclusion could best
increasing, and climate platform. The platform works The impact of the pandemic be described as a state where
disruptions are gathering through 7 Task Forces and 2 and the subsequent crisis has all adults above the age of 15
momentum. India’s vision for Action Councils. been asymmetric with far have effective access to and
the world is aptly reflected in greater risks for developing usage of savings, payments,
its theme for G20 Presidency The 7 Task Forces are as countries and vulnerable credit, insurance, and
this year - “Vasudhaiva follows: demographic groups. The gaps investment services/products
Kutumbakam” or “One Earth 1. Inclusive GVCs for have widened post pandemic, provided by financial
• One Family • One Future”. especially for the poor in
Resilient Global Trade and developing and least institutions. Effective
Investment developed access includes
With its growing economic relevant products
prowess and domestic 2. Future of Work, Skilling countries, as well that cater to
capabilities along with the and Mobility as for micro, small customer needs,
trust that it enjoys with the and medium-sized convenience and
global community, India can 3. Energy, Climate Change The 2 Action Councils are taskforces on ‘Financing for enterprises. affordability for
and will play a significant role and Resource Efficiency as follows: Global Economic Recovery’ customers,
to bring the world together and ‘Financial Inclusion for In fact, a new kind responsible market
to address important global 4. Digital Transformation 1. ESG in Business Economic Empowerment’, of duality has been
challenges. 5. Financing for Global which are critical for driving created wherein the
rich have recovered
Economic Recovery 2. African Economic the economic agenda, present
In terms of industry Integration: An Agenda for the key priorities for their
engagement within G20, B20 6. Tech, Innovation and R&D Global Business respective taskforces.
is among the most influential Mr. Sanjiv Bajaj, President, CII and
and important engagement 7. Financial Inclusion for In this Focus Issue, the Chair Chairman & Managing Director, Bajaj Finserv Limited
groups. CII is privileged to be Economic Empowerment and Co-Chair of the two
06 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 07
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2023 MAY 2023