This chapter advances the discussion on India’s financial sector by developing a comprehensive, multi-dimensional Financial Inclusion Index for the period 1994–2017. Unlike existing indices that provide a combined assessment, this index offers separate evaluations for rural and urban areas, recognising the distinct nature of financial inclusion challenges across regions. The index uniquely incorporates indicators from both scheduled commercial banks and cooperative institutions (Primary Agricultural Credit Societies (PACSs)), thereby capturing the broader structure of India’s financial system. Further unlike most other studies that rely on arbitrary weighting schemes, we use factor analysis to arrive at the weighting scheme for the indicators, ensuring robust results. Overall, this new index enhances our understanding of spatial disparities in financial access and is more representative of India’s financial landscape.