Recently India has taken numerous steps towards financial inclusion for achieving closer inclusive growth. This study seeks to examine the achievement of the Indian states regarding the financial inclusion in Jharkhand and Chhattisgarh. For this examination ten indicators of financial Inclusion have been deliberated. This study has used the data published by the Reserve Bank of India (RBI) and the Government of India. The study broadly analyses the role of financial inclusion on rural economic growth of Jharkhand and Chhattisgarh. Ranks of the states in accordance with the Composite score show that although the state of Jharkhand is the best, most of the state Chhattisgarh in eastern region has performed better in terms of financial inclusion. However, the stages of financial inclusion of the states in India have a lower the mean and higher the disparity. This study has revealed a strong positive association between the human development and the financial inclusion of the state Jharkhand and Chhattisgarh in India.

KEYWORDS:  Financial Inclusion, Principal Component Analysis, Rural Economic Growth.