Pathways to Navigate Financial Literacy Landscape in Indian Context

Abstract

In the rapidly evolving India, financial literacy and inclusion are important drivers in the development of the country. However, there are challenges and gaps in meeting adequate financial literacy. These gaps translate into limited financial decision-making capabilities, economic inequality, barriers in economic growth, vulnerability to financial scams, digital financial exclusion, etc. There is also a segment connecting financial literacy and its inclusion to economic development and how Covid-19 affected the landscape. This research paper is an attempt to examine the landscape of financial literacy and inclusion in India, the various issues and challenges faced by individuals and MSMEs in accessing financial services The paper also looks at the various government initiatives taken in this domain. After an analysis of existing government interventions and various initiates, many actionable recommendations have been discussed that aim to accelerate the spread of financial literacy e.g. leveraging education, various digital platforms, and creating target audience specific initiatives to be relatively more effective and hence, fast pace financial literacy. Special emphasis has been placed on women, vulnerable groups and on launching scalable initiatives. The recommendations have been curated to suit Indian context. This research attracts attention to multi-stakeholder approach to financial inclusion and hence, recognising the role of various elements of the landscape in achieving India’s inclusive growth.