Financial Inclusion in India: Progress from Access to Well-being

Over the past decade, India has made significant progress in expanding financial inclusion, driven by increased account ownership and a robust digital financial ecosystem. However, to achieve financial empowerment, a key development outcome for Viksit Bharat, financial access must translate into meaningful usage and financial well-being of individuals in the economy. Using multiple indicators from the World Bank’s Global Findex microdata 2025 for India, this article examines whether improvements in account ownership have enabled adults to manage day-to-day financial needs, cope with financial shocks, arrange emergency funds and feel confident about their future financial lives. The analysis is structured across key demographic groups, including gender, age, income, location and labour force participation. The results indicate that, as compared with 2021, a higher proportion of adults in 2024 own bank accounts, save, borrow and make digital payments, but that among account holders, the intensity of use remains low, with 37 per cent transacting less than once a month and 45 per cent storing money for short-term needs, a share unchanged since 2021. The results also suggest that adults in India have limited ability to manage day-to-day financial requirements and can cover expenses for only a short period during sudden financial shocks. The share of individuals who can arrange funds during an emergency has remained almost stagnant since 2021. The proportion of adults who save for old age has declined, and the proportion who borrow for health has increased, thereby indicating a limited impact of financial inclusion on financial well-being. Therefore, the article emphasises that the financial inclusion policy should extend beyond access and basic usage metrics to prioritise financial health, resilience and substantive engagement with financial services. The study concludes by outlining policy implications to support these broader development objectives. JEL Codes: G21, O10, O16