Digital Financial Inclusion and Sustainable Growth in South Asia

Among the driving forces of sustainable economic growth in South Asia, digital financial inclusion has turned out to be one of the most powerful especially when we consider the fast technological change and huge growth of fintech ecosystems. This paper discusses how Digital Financial Inclusion (DFI) influences the sustainable economic growth of the South Asian countries such as India, Pakistan, Bangladesh, Sri Lanka, and Nepal that are the focus of this paper. The study follows a descriptive and analytical approach to research. It uses primary data that were collected from 275 respondents, and secondary data that were obtained from international databases such as the World Bank and International Monetary Fund. Regression and correlation analyses were carried out to assess the extent of association between digital financial inclusion indicators and sustainable growth indicators. The results indicate that Digital Financial Inclusion has a significantly positive effect on Sustainable Economic Growth (B= 0. 267, p < 0. 05). Moreover, the correlation results reveal a moderate positive correlation (r = 0. 452, p < 0. 01) between digital financial inclusion and the indicators of sustainable growth. The comparative analysis shows that countries with a higher adoption rate of digital payments, internet penetration, and financial account ownership have a better sustainability performance. Even though the explanatory power of DFI is limited, the paper verified through its analysis that digital financial ecosystems are enabling factors for entrepreneurship, SME expansion, employment creation, and poverty alleviation. The study argues that digital financial inclusion is one of the driving forces for sustainable development in South Asia but not its sole factor, thus highlighting the importance of complementary institutional and policy reforms.