While 13.6 per cent in Gujarat and 10.7 per cent in Rajasthan reported having heard about and invested in the stock market, the findings show that advanced financial literacy diverges. Respondents in Rajasthan more often correctly defined diversification (25.6 per cent versus just 7.1 per cent in Gujarat) and mutual funds (19.5 per cent versus 13.7 per cent), according to a study of the two structurally different states conducted by the Indian Institute of Management Udaipur and think tank People Research on India’s Consumer Economy. The study covers 4,075 households across Gujarat and Rajasthan and is based on principal component analysis across 10 dimensions of financial capability.
Gujarat and Rajasthan scored 33.6 and 32, respectively, on the overall FMI, with most household scores clustered between 15 and 40. According to the report, both states score reasonably on basic financial literacy and behavioural attitudes towards saving, but lag on financial planning, risk and resilience, and gender-related indicators.
Nearly all respondents reported saving some portion of their income, yet only 24.3 per cent said they invest any amount, with a sharp divide between Gujarat (34.8 per cent) and Rajasthan (14.3 per cent). This gap is also reflected in savings allocation: mutual fund participation stands at 5 per cent in Gujarat against just 1.1 per cent in Rajasthan, where households rely more heavily on bank deposits and gold.
On retirement, the picture is bleak in both states, but grimmer in Rajasthan. Some 56.7 per cent of respondents there have not begun any retirement planning, compared to 53.5 per cent in Gujarat. “The evidence from Gujarat and Rajasthan suggests that financial maturity at the foundational level is incomplete. While households can navigate day-to-day monetary transactions with confidence, many lack the conceptual tools required for effective long-term financial planning,” the report said.
In both states, family obligations — children’s education, health costs, and housing — dominate long-term financial thinking, with retirement consistently treated as a residual concern.
On numeracy, Gujarat holds a modest edge. While both states handle basic arithmetic well, Gujarat’s grasp of inflation concepts is stronger, with 65.6 per cent giving correct responses versus 52.7 per cent in Rajasthan.
Behaviourally, Gujarat households maintain stronger emergency buffers, with 44.2 per cent reporting funds covering three months of expenses, compared to 33.7 per cent in Rajasthan.
On digital finance, both states remain cautious. Mobile banking app usage is nearly identical at 17.3 per cent in Gujarat and 16.9 per cent in Rajasthan. However, the starkest divergence is in digital lending, with Rajasthan’s adoption rate at 3.6 per cent — nearly 9x Gujarat’s 0.4 per cent.
In his foreword to the report, Ministry of Statistics and. Programme Implementation Secretary Saurabh Garg said that as India’s financial ecosystem becomes more complex, household balance sheets are evolving. “Strengthening financial maturity will be essential to enhance retirement preparedness, improve resilience to shocks, promote responsible market participation, and sustain trust in financial institutions,” he said.
 "Representative Picture")