Indian Financial System and New Economic Paradigm: Bridging Gaps through Financial Literacy

Market modernization and globalization have accelerated since economic liberalization in 1991, bringing revolutionarychanges to the Indian financial sector. Improvement has been made, but still, there are many obstacles to overcome beforethe great majority of Indians can enjoy stability, financial inclusion, and literacy. The financial system in India evolvesquickly in answer to changes in the global market, advances in technology, and changes in domestic legislation. Financialliteracy is essential to ensure development, stability, and inclusion in this new economic scenario. This study is descriptive.This study focuses on how the Indian financial system is currently doing, the gaps brought about by recent economicchanges, and by what means financial literacy could benefit from closing these gaps. The study emphasizes the need toprepare individuals with financial literacy to allow informed decision-making and economic involvement by examining thelinks between financial literacy and prominent industries including banking, digital finance, and financial inclusion.