The present work is an attempt to investigate into the causal impact of financial deepening on economic growth in case of India. For analyzing the long term equilibrium relationship between the desired variables, we have employed Autoregressive Distributed Lag (ARDL) Bound testing approach. ARDL being a new approach is an improvement over the other traditional techniques of cointegration. Further, using the Granger Error Correction Model (ECM) technique we have tried to estimate the causal impact in the short run also. The findings suggest that there exist an equilibrium relationship in long run between financial deepening and economic development. Results suggested that financial deepening causes economic growth in the long run and also in the short run. Therefore, it is concluded that for enhancing the economic growth the government has to take effort to improve the financial deepening. Special efforts should be put to provide easy credit to private sector, stock market development and also to foster foreign trade.

Amidst the well-known facts, there is a considerable disparity between India and Bharat. Whereas India is leaping high towards advancement, Bharat is retreating with a big chunk of the population still poor and under privileged both socially and economically. Microfinance has been introduced and promoted to bridge this gap and it has been successful to a great extent. This paper examines the progress of microfinance in terms of the successes and failures of SHG-bank linkage program. SHG-bank linkage program has been analyzed critically in this paper to assess its contribution towards removing the disparities prevailing in various regions of the country. An attempt has been made to find out that whether this program has reduced regional disparities or has it itself became prey to regional imbalances. The first half analyzes the trends in the scheduled commercial banks, and the latter half gives an account of SHG-bank linkage program.

No abstract

No abstract

ABSTRACT