Gujarat financial inclusion index slips, most districts perform worse than national average

By Rajiv Shah

Despite wide talk of Gujarat being No 1 in things financial, top rating agency Crisil has found that the state is failing to improve upon its financial inclusion index compared to most of India. The top consulting firm's new report has revealed that the financial inclusion index, called Inclusix – a concept it worked out in alliance with the Ministry of Finance, Government of India, to find out how deep is financial penetration among larger sections of population – has revealed, Gujarat has failed to improve its performance over the last four years in providing the three critical parameters of banking services, viz. branch penetration, deposit penetration, and credit penetration.

Titled “Crisil Inclusix: An Index to Measure India’s Progress on Financial Inclusion”, this is the second report in a year brought out by India’s authoritative consulting firm, which is supported by the well-known US rating agency, Standard & Poor.
Dated January 2014, the report – which bases the financial inclusion rankings of all the 35 Indian states and 638 districts on the basis of the data provided by the Reserve Bank of India (RBI) – has found that Gujarat has not only slipped its ranking from the 17th position in 2009 to 18th in 2011 and further to 19th in 2012. The state’s Inclusix score in 2012 was found to be 40.6 on a scale of 100 — which is 2.2 points below the national average of 42.8. India’s financial index registered an improvement by 2.7 in 2012, compared to 2011, when it was 40.1. As against this, Gujarat’s financial inclusion index improved by just 2.0.

Financial inclusion index on a scale of 100: Indian states

Worse, the data suggest, of the 26 Gujarat districts analysed by the top consulting firm, only 10 districts were able to perform better than the national average (42.8). These districts are Porbandar (56.8), Vadodara, (54.1), Jamnagar (51.6), Navsari (50.4), Ahmedabad (50.3), Kutch (45.8), Anand (46.8), Rajkot (46.4), Bharuch (45.4), and Amreli (44.1). Even the state capital, Gandhinagar, being projected by the powers that be as the “role model” township for other states to follow in financial development, could score below the national average with 42.7.

While none of Gujarat districts could make it to the top 50, backward districts of the state continued to show poor performance in financial inclusion, too, in almost the same way as other social sectors. Thus, the predominantly tribal district of Dahod scored 22.7 on a scale of 100, the worst in Gujarat, ranking No 571 among 638 Indian districts. The situation was found to be not very different for the border district of Banaskantha, scoring 23.4, and ranking No 560; Panchmahals, scoring 25.3, and ranking 532; Tapi, scoring 26.4, and ranking No 515, and so on. Each of these districts has a sizable number of tribal population.
What should be particularly disconcerting for the policy makers, who are seeking to project Gujarat as the future “financial capital” of India by introducing the Gujarat International Finance Tec-city (GIFT) next to Gandhinagar, is that several major districts, known for industrial development, performed poor compared to large parts of India. Surat, Gujarat’s second biggest city which has become an industrial and commercial hub, for instance, scored 35.0, ranking No 340, and Bhavnagar scored 32.1, ranking No 409.
Major states which performed better than Gujarat are – Kerala, with a score of 80.7, double that of Gujarat, Delhi (78.2), Andhra Pradesh (64.8), Tamil Nadu (64.8), Karnataka (61.4), Himachal Pradesh (58.4), Punjab (56.8), Uttarakhand (52.4), Haryana (49.3), Orissa (43.3) and Maharashtra (40.7). Interestingly, the study shows that out of 35 Indian states (both major and minor), as many as 22 of them showed a better improvement in their score in 2012 over 2011, as compared to that of Gujarat.
Among the major Indian states, the best improvement was registered by Delhi (14.0). This was followed by Kerala 4.3, Tamil Nadu 4.2, Karnataka 4.2, Andhra Pradesh 3.5, Karnataka 3.7, Andhra Pradesh 3.5, Maharashtra 3.2, Madhya Pradesh 3.2, Jammu & Kashmir 3.1, Odisha 2.8, West Bengal 2.5, Assam 2.2 and Rajasthan 2.1. Gujarat’s improvement was 2.0 on a scale of 100, which suggests that in financial inclusion the state machinery failed to mobilise banks to remotest corners, despite loud talk about mobilising finances for micro credit.

Financial inclusion index on a scale of 100: Gujarat districts

Crisil says, India’s score of 42.8 on a scale of 100 reflects “under-penetration of formal banking in the country.” It underlines, “Just one in two Indians have a bank savings account, and one in seven access to bank credit.” It points towards “wide regional disparities”, with south Indian states remaining “leader in financial inclusion” in “all three dimensions of financial inclusion”. These states, in fact, “strengthened” their “leadership in 2012.” What it said of India was found to be equally true for Gujarat.

Comments

From plagiarism to proxy exams: Galgotias and systemic failure in education

By Sandeep Pandey* Shock is being expressed at Galgotias University being found presenting a Chinese-made robotic dog and a South Korean-made soccer-playing drone as its own creations at the recently held India AI Impact Summit 2026, a global event in New Delhi. Earlier, a UGC-listed journal had published a paper from the university titled “Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis,” which became the subject of widespread ridicule. Following the robotic dog controversy coming to light, the university has withdrawn the paper. These incidents are symptoms of deeper problems afflicting the Indian education system in general. Galgotias merely bit off more than it could chew.

Farewell to Saleem Samad: A life devoted to fearless journalism

By Nava Thakuria* Heartbreaking news arrived from Dhaka as the vibrant city lost one of its most active and committed citizens with the passing of journalist, author and progressive Bangladeshi national Saleem Samad. A gentleman who always had issues to discuss with anyone, anywhere and at any time, he passed away on 22 February 2026 while undergoing cancer treatment at Dhaka Medical College Hospital. He was 74.

From ancient wisdom to modern nationhood: The Indian story

By Syed Osman Sher South of the Himalayas lies a triangular stretch of land, spreading about 2,000 miles in each direction—a world of rare magic. It has fired the imagination of wanderers, settlers, raiders, traders, conquerors, and colonizers. They entered this country bringing with them new ethnicities, cultures, customs, religions, and languages.

Sergei Vasilyevich Gerasimov, the artist who survived Stalin's cultural purges

By Harsh Thakor* Sergei Vasilyevich Gerasimov (September 14, 1885 – April 20, 1964) was a Soviet artist, professor, academician, and teacher. His work was posthumously awarded the Lenin Prize, the highest artistic honour of the USSR. His paintings traced the development of socialist realism in the visual arts while retaining qualities drawn from impressionism. Gerasimov reconciled a lyrical approach to nature with the demands of Soviet socialist ideology.

The 'glass cliff' at Galgotias: How a university’s AI crisis became a gendered blame game

By Mohd. Ziyaullah Khan* “She was not aware of the technical origins of the product and in her enthusiasm of being on camera, gave factually incorrect information.” These were the words used in the official press release by Galgotias University following the controversy at the AI Impact Summit in Delhi. The statement came across as defensive, petty, and deeply insensitive.

Public money, private profits: Crop insurance scheme as goldmine for corporates

By Vikas Meshram The farmer in India is not merely a food provider; he is the soul of the nation. For centuries, enduring natural calamities and bearing debt generation after generation while remaining loyal to the soil, this community now finds itself trapped in a different kind of crisis. In February 2016, the Modi government launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) with the stated objective of freeing farmers from the shackles of debt. It was an ambitious attempt to provide a strong safety net to cultivators repeatedly devastated by excessive rainfall, drought, and hailstorms.

Development at what cost? The budget's blind spot for the environment

By Raj Kumar Sinha* The historical ills in the relationship between capital and the environment have now manifested in areas commonly referred to as the "environmental crisis." This includes global warming, the destruction of the ozone layer, the devastation of tropical forests, mass mortality of fish, species extinction, loss of biodiversity, poison seeping into the atmosphere and food, desertification, shrinking water supplies, lack of clean water, and radioactive pollution.

Conversion laws and national identity: A Jesuit response response to the Hindutva narrative

By Rajiv Shah A recent book, " Luminous Footprints: The Christian Impact on India ", authored by two Jesuit scholars, Dr. Lancy Lobo and Dr. Denzil Fernandes , seeks to counter the current dominant narrative on Indian Christians , which equates evangelisation with conversion, and education, health and the social services provided by Christians as meant to lure -- even force -- vulnerable sections into Christianity.

Thali, COVID and academic credibility: All about the 2020 'pseudoscientific' Galgotias paper

By Jag Jivan* The first page image of the paper "Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis" published in the Journal of Molecular Pharmaceuticals and Regulatory Affairs , Vol. 2, Issue 2 (2020), has gone viral on social media in the wake of the controversy surrounding a Chinese robot presented by the Galgotias University as its original product at the just-concluded AI summit in Delhi . The resurfacing of the 2020 publication, authored by Dharmendra Kumar , Galgotias University, has reignited debate over academic standards and scientific credibility.

Search This Blog