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

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

By Rajiv Shah This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.

Love letters in a lifelong war: Babusha Kohli’s resistance in verse

By Ravi Ranjan* “War does not determine who is right—only who is left.” Bertrand Russell’s words echo hauntingly in our times, and few contemporary Hindi poets embody this truth as profoundly as Babusha Kohli. Emerging from Jabalpur, Madhya Pradesh, Kohli has carved a unique space in literature by weaving together tenderness, protest, and philosophy across poetry, prose, and cinema. Her work is not merely artistic expression—it is resistance, refuge, and a call for peace.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Asbestos contamination in children’s products highlights global oversight gaps

By A Representative A commentary published by the International Ban Asbestos Secretariat (IBAS) has drawn attention to the challenges governments face in responding effectively to global public-health risks. In an article written by Laurie Kazan-Allen and published on March 5, 2026, the author examines how the discovery of asbestos contamination in children’s play products has raised questions about regulatory oversight and international product safety. The article opens by reflecting on lessons from the COVID-19 pandemic, noting that governments in several countries were slow to respond to early warning signs of the crisis. Referring to the experience of the United Kingdom, the author writes that delays in implementing protective measures contributed to “232,112 recorded deaths and over a million people suffering from long Covid.” The commentary uses this example to illustrate what it describes as the dangers of underestimating emerging threats. Attention then turns...

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Echoes of Vietnam and Chile: The devastating cost of the I-A Axis in Iran

By Ram Puniyani The recent joint military actions by Israel and the United States against Iran have been devastating. Like all wars, this conflict is brutal to its core, leaving a trail of human suffering in its wake. The stated pretext for this aggression—the brutality of the Ayatollah Khamenei regime and its nuclear ambitions—clashes sharply with the reality of the diplomatic landscape. Iran had expressed a willingness to remain at the negotiating table, signaling a readiness to concede points emerging from dialogue.

Authoritarian destruction of the public sphere in Ecuador: Trumpism in action?

By Pilar Troya Fernández The situation in Ecuador under Daniel Noboa's government is one of authoritarianism advancing on several fronts simultaneously to consolidate neoliberalism and total submission to the US international agenda. These are not isolated measures, but rather a coordinated strategy that combines job insecurity, the dismantling of the welfare state, unrestricted access to mining, the continuation of oil exploitation without environmental considerations, the centralization of power through the financial suffocation of local governments, and the systematic criminalization of all forms of opposition and popular organization.

The kitchen as prison: A feminist elegy for domestic slavery

By Garima Srivastava* Kumar Ambuj stands as one of the most incisive voices in contemporary Hindi poetry. His work, stripped of ornamentation, speaks directly to the lived realities of India’s marginalized—women, the rural poor, and those crushed under invisible forms of violence. His celebrated poem “Women Who Cook” (Khānā Banātī Striyāṃ) is not merely about food preparation; it is a searing indictment of patriarchal domestic structures that reduce women’s existence to endless, unpaid labour.

The price of silence: Why Modi won’t follow Shastri, appeal for sacrifice

By Arundhati Dhuru, Sandeep Pandey* In 1965, as India grappled with war and a crippling food crisis, Prime Minister Lal Bahadur Shastri faced a United States that used wheat shipments under the PL-480 agreement as a lever to dictate Indian foreign policy. Shastri’s response remains legendary: he appealed to the nation to skip one meal a day. Millions of middle-class households complied, choosing temporary hunger over the sacrifice of national dignity. Today, India faces a modern equivalent in the energy sector, yet the leadership’s response stands in stark contrast to that era of self-reliance.

Search This Blog