India's Financial Maturity Lags Despite Inclusion Gains, IIMU-PRICE Study Finds — Indian Institute of Management Udaipur (IIMU)

Event summary

IIMU and PRICE released the Financial Maturity Index (FMI) on April 24, 2026, assessing household financial capability in Gujarat and Rajasthan.
Study found significant gaps in understanding key financial concepts like compounding, inflation, and risk-return trade-offs.
Only 30% of households have adequate emergency buffers, with most relying on informal coping mechanisms during financial shocks.
85% of households prefer traditional investment instruments like gold and real estate over diversified financial products.

The big picture

While India has made significant strides in financial inclusion, the study highlights a critical gap between access and informed financial behavior. This discrepancy poses challenges for monetary policy effectiveness and long-term financial stability. The findings underscore the need for a shift from inclusion to maturity, requiring coordinated efforts between policymakers, regulators, and financial institutions.

What we're watching

Policy Intervention: How targeted policy measures will address gaps in financial awareness and decision-making.
Product Innovation: Whether financial institutions can develop products aligned with households' actual financial behaviors.
Digital Integration: The pace at which digital financial tools will evolve beyond transactional use to support broader financial planning.