The growth of digital technology is changing the way people in India use money, make payments, and access financial services. Cryptocurrency and Central Bank Digital Currency (CBDC) are two important developments in this changing financial system, but they are different in nature. Cryptocurrencies are privately created digital assets and their values can change sharply, while India's Digital Rupee is a digital form of the Indian Rupee issued by the Reserve Bank of India (RBI). This study examines the role of CBDC in improving financial inclusion and supporting economic growth in India, with particular attention to the differences between cryptocurrency and the Digital Rupee. The study uses a mixed research approach based on secondary information and a proposed primary survey. Statistical tools such as descriptive statistics, correlation, regression analysis and hypothesis testing can be used to examine the relationship between awareness of digital currencies, CBDC adoption, financial inclusion and economic benefits. Existing studies suggest that better financial inclusion can support economic development, while CBDC may improve the efficiency, accessibility and transparency of digital payments. The expansion of India's Digital Rupee, including its use with UPI, programmable payments and offline payment features, shows its growing importance in the digital financial system. However, challenges such as limited awareness, digital literacy, cybersecurity, privacy concerns and access to digital infrastructure may affect its wider adoption. Overall, the study suggests that CBDC has considerable potential to strengthen financial inclusion and contribute to India's economic development, while cryptocurrency presents both opportunities and risks.