TEACHING FINANCIAL LITERACY FOR ECONOMIC EMPOWERMENT IN INDIA: CHALLENGES AND OPPORTUNITIES

Abstract

In India, financial literacy plays a pivotal role in fostering economic empowerment, particularly in a country characterized by economic diversity, rural-urban disparities, and rapid financial inclusion. With the increasing penetration of digital payment systems, government welfare schemes, and access to financial products, the need for financial literacy has become more urgent. This chapter explores the contemporary Indian context of financial literacy, focusing on its impact on diverse demographic groups, including rural populations, women, and youth. The chapter reviews the role of government initiatives such as the Pradhan Mantri Jan DhanYojana (PMJDY), digital finance platforms like UPI, and microfinance institutions in promoting financial inclusion. Challenges such as linguistic and cultural diversity, low levels of formal education, and digital literacy gaps are examined. Data analysis reveals a significant correlation between financial literacy and improved economic outcomes, such as increased savings rates, reduced debt dependency, and enhanced participation in government schemes. The chapter concludes with recommendations for policymakers, educators, and financial institutions to design culturally relevant, accessible, and scalable financial literacy initiatives to empower individuals and promote sustainable economic growth in India.