One in Four Indians Is Financially Literate, Says Wef Study

Hyderabad: One in every four Indians is financially literate, having an awareness about basic financial concepts like investment, debt, budgeting, and saving techniques, according to a report of the World Economic Forum.

Telangana, the report said, fared slightly better than the national average. While states like Goa and Himachal Pradesh topped in financial literacy, states such as Assam, Bihar, Manipur, Nagaland, and Uttar Pradesh are at the bottom.

Around 25 per cent of the Indian population is aware of basic financial concepts, which is significantly low compared to developed nations or emerging economies.

According to the report, only 4.2 per cent of the Indian population have an advanced understanding of financial concepts, while 20.8 per cent have moderate financial knowledge. The population having elementary financial knowledge is 42.8 per cent, while 32.2 per cent are financially illiterate.

In Telangana, urban areas showed promising trends in understanding financial concepts and utilising digital platforms, while challenges persist in rural areas and among disadvantaged groups.

A study conducted in Hyderabad and Secunderabad reveals that over 75 per cent of residents demonstrate a good understanding of financial concepts like interest rates, inflation, and risk-return relationships

The WEF's Financial Literacy Initiative aims to address gaps in financial education by targeting underprivileged groups through interactive workshops using storytelling techniques. While the initiative has primarily focused on Navi Mumbai so far, its emphasis on grassroots engagement could be beneficial if extended to semi-urban and rural regions of Telangana.