Financial inclusion refers to the provision of financial services for the low income groups and under privileged. Number of initiatives have been taken by the Government of India and Reserve Bank of India to provide financial services for those, which have been financially excluded. Financial inclusion is vital for the growth of the economy as it bridges the gap between the rich and poor and ensures their participation towards the growth of the economy by mobilisation of funds which ultimately leads to more savings and investment. Despite being various initiatives taken by the Government there still exists a gap between the providers of the financial services and those who are in need of those financial services. Study intends to investigate the reasons behind that gap between the demand and supply of financial literacy as well. The present study aims to investigate various indicators of financial inclusion and the extent of financial inclusion in economy and finally its impact on growth on the economy in India by taking a period of 10 years. Regression analysis will be used to study the impact of financial inclusion on the growth of the economy and to suggest policy measures for bridging the gap between the demand and supply of financial services with special emphasize on rural population.

KEYWORDS:  Financial Inclusion, Financial Literacy, Growth, India, Rural.