Integration of our economy with world economy will increase further and so the risk of world crisis impacting Indian economy. In India there is large unorganized sector and the Government is withdrawing from pension schemes even in organized sector. In absence of any social security scheme, our economy may be in, for a major instability after demographic dividend starts waning after 20/25 years. Thus improvement of financial literacy in the country is imperative for financial wellbeing of individuals as well as for the economy. The significance of financial literacy as a transformation agent on the financial inclusion agenda of the nation is undisputed in academic as well as practitioner’s circle. This paper takes a literature review of definitional and measurement aspects of financial literacy. It makes an attempt to identify the various aspects involved in defining and measuring Financial Literacy in Indian context. It also takes a review of Financial Literacy measures being taken in the country. We propose to arrive at an index of Financial Literacy for college going students. It may be pointer to modification of educational inputs for improvement in Financial Literacy amongst the students.
Ardhendu Shekhar Singh