Savings and Investment Behaviour in Rural India: An Impact Assessment of Investor Awareness Program

The article examines the impact of the government’s Investor Awareness Program (IAP), which aims to enhance financial literacy and promote savings and investment awareness in rural India. The findings are based on primary data collected through a telephonic survey across 16 states, supplemented by a field survey in three states. The research shows that the programme has led to increased awareness of government schemes, insurance and investment policies. While limited earnings prevent significant savings and investments, participants have begun budgeting, making small savings and investing in livestock and post office savings schemes. Notably, the programme has helped rural investors, who often rely on chit funds, recognise fraudulent schemes, thereby protecting their limited income.