FINANCIAL LITERACY AS A TOOL FOR IMPROVING FINANCIAL INCLUSION AMONG FARMERS IN GUJARAT

Financial literacy has emerged as a critical factor in promoting financial inclusion, particularly in the agricultural sector where farmers often face income instability, limited access to formal credit, and high exposure to financial risks. This review paper examines the role of financial literacy as a tool for improving financial inclusion among farmers in Gujarat. The study is based on an extensive review of existing literature, including research articles, government reports, policy documents, and institutional studies related to financial literacy, financial inclusion, and agricultural finance. The review highlights the conceptual relationship between financial literacy and financial inclusion and examines the current status of financial inclusion among farmers at the national level and within Gujarat. It also discusses the role of financial literacy in enhancing access to and effective use of formal financial services, such as banking, credit, insurance, and digital financial platforms. The paper further identifies key challenges in improving financial literacy among farmers, including low educational levels, income uncertainty, digital divide, and behavioral barriers. The review concludes that financial literacy is a crucial demand-side intervention that complements financial infrastructure and policy initiatives, and it emphasizes the need for targeted, region-specific financial education programs to achieve meaningful and sustainable financial inclusion among farmers in Gujarat.