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Does financial inclusion impact socio-economic stability? A study of social safety net in Indian slums

Jaskirat Singh (University School of Applied Management, Punjabi University, Patiala, India) (Indian Council of Social Science Research (ICSSR), Ministry of Education, New Delhi, India)
Manjit Singh (University School of Applied Management, Punjabi University, Patiala, India)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 30 December 2022




The study aims to examine the impact of social assistance schemes introduced by the Indian government on poverty alleviation in urban slums.


To accomplish the study's objectives, primary data were collected from 585 beneficiaries of government schemes operating in India's northwestern state using a multistage sampling technique (Punjab). The exploratory factor analysis (EFA) technique reduced the total dataset to its minimum factors. Then, using second-order confirmatory factor analysis, the data's validity and reliability were determined. The data were analyzed using statistical techniques such as one-way ANOVA, t-test and structural equation modeling (SEM).


The study's findings indicate that social assistance provided by the Government of India has a direct and substantial influence on poverty alleviation in urban slums. The study demonstrates how access to basic credit financial services through social assistance programmes has improved the lives of urban poor households living in slums and assisted them in escaping poverty.

Research limitations/implications

The investigation was undertaken among a few limitations. First, the in-depth investigation of the study is restricted to only the northwestern state of India solely because of limited resources and time availability. Second, the study focuses primarily on the perspectives of beneficiaries of the social assistance schemes in India. Still, it might be expanded in the future to include additional stakeholders such as bank executives, business colleagues and municipal town panchayats.

Practical implications

Due to policymakers' increased emphasis on poor households living in urban slums, this topic is critical for studying many issues.

Social implications

The research explores gaps in social welfare schemes to direct policymakers and government authorities to take appropriate steps to aid the urban poor people in sliding out of poverty.


By examining the influence of the Indian government's social welfare schemes on poverty reduction in slums, this study contributes to the literature on public assistance schemes and poverty alleviation. This article can assist policymakers in developing nations in increasing financial capability among disadvantaged urban families on a national and international level.



The scholar, Dr. Jaskirat Singh (F.No. 3-36/2021-22/PDF/GEN), is the awardee of ICSSR Post-Doctoral Fellowship. This paper is largely an outcome of the Post-Doctoral Fellowship sponsored by the Indian Council of Social Science Research (ICSSR). However, the responsibility for the facts stated, opinions expressed and the conclusions drawn is entirely of the author.


Singh, J. and Singh, M. (2022), "Does financial inclusion impact socio-economic stability? A study of social safety net in Indian slums", International Journal of Social Economics, Vol. ahead-of-print No. ahead-of-print.



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