Why India needs to work on financial literacy now more than ever
Thursday, June 15, 2017
I wouldn’t have been writing this piece if the calendar on my desk showed a date from a decade-and-a-half back. The topic of financial literacy itself would have sounded alien, though it is now one of the top priorities for most nations. It is even more critical for developing nations like India, where the majority find financial literacy beyond their comprehension.
According to its literal definition, financial literacy is the ability to use skills and knowledge to take effective and informed money-management decisions. For a country like India, this plays a bigger role as it is considered an important adjunct to promotion of financial inclusion and ultimately financial stability.
As per a global survey by Standard & Poor’s Financial Services LLC (S&P) less than 25% of adults are financially literate in South Asian countries. For an average Indian, financial literacy is yet to become a priority. India is home to 17.5% of the world’s population but nearly 76% of its adult population does not understand even the basic financial concepts.