Bharat Vikas Mandal: Integrating Vedic Economic Principles with Digital Financial Inclusion

Abstract

This paper proposes Bharat Vikas Mandal (BVM), an economic model that integrates Vedic principles with contemporary blockchain, AI, and digital technologies for financial inclusion of underserved populations in India. The model is grounded in dharma, understood as the principle of righteous action and sustainable social order, as a foundational value alongside technological infrastructure.

BVM introduces several integrated mechanisms: a Karma Credit System that quantifies community contributions through blockchain verification, AI-driven mentorship combining traditional wisdom frameworks with financial guidance, decentralized community hubs (Dharma Nodes), and DharmaVerse, a digital ecosystem for economic participation. By synthesizing Arthashastra's governance principles with modern decentralized finance mechanisms, BVM creates a framework potentially targeting financial inclusion for underserved Indians while remaining compatible with existing economic systems.

This paper presents the conceptual framework, implementation methodology, feasibility assessment based on existing models in cooperative finance and community-based economics, and preliminary research agenda for pilot validation.

Keywords: Dharmic economics, financial inclusion, decentralized finance, community governance, blockchain applications, AI integration, cooperative finance, Vedic principles, underserved populations, Karma Index,  Ethical causality measurement, Financial inclusion India, Dharmic governance,  Community-based finance.