Emerging Economy Studies

An initiative of financial inclusion helps to boost the economies of poorer regions and countries. Also, greater financial inclusion is a prime driver for attaining social inclusion in most of the developing nations across the globe. So, the main purpose of this article is to investigate the determinants of financial inclusion from both demand- and supply-side variables in Indian states during the post-liberalization periods (1993–2015). Furthermore, the study uses different econometric models such as fixed effect, random effect, panel-corrected standard errors, and feasible generalized least squares for analysis purpose. The empirical findings of this study suggest that among the demand-side factors, literacy and per capita state GDP have a positive impact on financial inclusion, whereas other two variables like rate of unemployment and percentage of rural population have a negative impact on financial inclusion. Likewise, from the supply-side factors, our empirical findings depict that all four variables (i.e., road length, electricity supply, social sector expenditure, and capital receipt) have a positive and significant effect on financial inclusion in the post-liberalized Indian states.

The Government of India had set a target of 40 GW of rooftop solar power installation by 2022. However, the progress on rooftop installation is lagging far behind, reaching only 7.9 GW as of June 2022. Lack of availability of capital—both debt and equity and high cost of capital are the key reasons for this uninspiring growth of the rooftop solar sector. Multilateral Development Banks (MDBs) such as the World Bank and Asian Development Bank have provided a credit line of USD 625 million to the rooftop solar sector through commercial banks to address the high cost of financing and limited capital availability. However, these lines of credit are far lower than the capital requirements of the sector. The article will show that securitization with an appropriate credit guarantee structure can help Indian rooftop solar developers access the capital market and reduce the cost of debt through expansion of the investor base, reduction in liquidity discount, and bankruptcy risk mitigation. This will allow the sector to better leverage public and MDBs’ capital to attract the much-needed commercial long-term debt capital at appropriate terms of credit to India’s rooftop solar sector.

This study explores the possibilities and prospects of the G20’s involvement in igniting private development financing, which is crucial for fostering economic growth and development in underdeveloped nations. The G20 has acknowledged the essential role that private development finance plays in attaining global development objectives. It also assesses the G20’s policies and programs for promoting private development financing, citing examples like the Global Infrastructure Connectivity Alliance and the Compact with Africa. The evaluation also takes into account India’s views on G20 initiatives like the G20 Innovation Partnership for Inclusive Development and the present situation. The findings from the study show that the G20 has made a substantial effort to spur private development financing, although there are still gaps and difficulties in their work. Challenges that must be overcome include, for example, the lack of coordination among G20 countries and the requirement for stronger risk-sharing systems. This study offers valuable insights for policymakers, private sector corporations, and other stakeholders involved in promoting economic growth and development in developing nations. This also highlights India’s G20 Presidency and its initiatives to encourage private investment. The suggestions made in this article are intended to fill in the gaps and overcome the obstacles facing the G20’s initiatives to spur private development financing, which may help achieve the world development goals, particularly from the Indian perspective.

This study employs panel data from 2000 to 2019 to examine and analyze the impact of foreign aid on growth in six South Asian nations, which are Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka. The motivation of this study is to furnish empirical support for resolving the ongoing discourse on the relationship between foreign aid and economic growth. To this end, the article employs three panel regression models: pooled ordinary least-squares, random effect, and fixed effect, and estimates them using White cross-sectional standard errors and covariance. The empirical results reveal that foreign aid and population have a negative and considerable impact on Asian countries’ economic progress; whereas, gross capital formation has positive and significant effects. The empirical results of this study have important implications for both donors and aid recipient countries. It suggests that to get positive influence from aid, the recipient countries should enhance the quality of governance on the other side; the donor should provide a huge amount of aid for reforming the institutions’ quality and capacity building to developing countries. Furthermore, these countries should prefer to receive a grant as aid rather than a loan to reduce the debt burden. Government should develop the appropriate policies that help to increase government revenue and reduce the unnecessary current expenditure. To increase government revenue, the tax base should be regulated rather than being reliant on foreign loans. Also, advised channeling remittance into the productive sector and reducing the trade deficit by substituting imports through attracting foreign direct investment.

Millets are small grains, normally referred to as “inferior goods” in the classification of goods, under microeconomics. Across South East Asia and Africa, it has been a staple food for ages. In India, since ancient times, millets have been cultivated and consumed but are not as popular as rice and wheat. In April 2018, India declared 2018 as the National Year of Millets. The United Nations General Assembly at its 75th session in March 2021 declared 2023 as the International Year of Millets. India is already among the five largest economies in the world. India is predicted to be the third fastest-growing economy by 2030. As we embark on to 2024, India has to achieve the dream of a $5 trillion economy and ensure self-sufficiency in the production of food grains. Through the rapid pace of innovation and ideation, and by ensuring food availability, India can achieve a higher growth trajectory. The demographic dividend, digital prowess and the renewed focus on “Millets production” will help India to achieve the goals of “Viksit Bharat” by 2047. This article is an attempt to understand that “encouragement to millet production and consumption” can lead to multifarious gains. Hence, to achieve the goals of sustainable development, it is imperative that healthy and cost-effective crops are encouraged.