Financial inclusion under Jan Dhan? Gujarat under Modi was a poor performer

By Rajiv Shah
Prime Minister Narendra Modi has launched his ambitious Jan Dhan project by “enrolling”, according to an official claim, about 1.5 crore Indians as new bank account holders. But what is most interesting is that during his stewardship as chief minister, Gujarat remained a poor performer vis-à-vis several major states in financial inclusion – which is what Modi is seeking to "promote" by targeting around 10 crore people across India as new account holders by the next Republic Day. A report by the top consultants, Crisil, prepared in alliance with American agency Standard & Poor, released in January 2014, said Gujarat’s financial inclusion (Inclusix) index was below national average.
The report, sponsored by the Union ministry of finance, has reached this conclusion on the basis of an analysis of performance of all Indian states in three critical areas of banking services -- branch penetration, deposit penetration, and credit penetration. Titled “Crisil Inclusix: An Index to Measure India’s Progress on Financial Inclusion”, this was the second report in a year brought out by India’s authoritative consulting firm.
Basing on Inclusix index – a special term coined to identify financial inclusion – the report said that found that Gujarat not only slipped its ranking from the 17th position in 2009 to 18th in 2011 and further to 19th in 2012 among 35 Indian states. The state’s Inclusix score in 2012 was found to be 40.6 on a scale of 100 — which was 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.
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 best performing districts, its backward districts continued to show poor performance. Thus, the predominantly tribal district of Dahod scored 22.7 on a scale of 100, the worst in Gujarat, ranking 571 among 638 Indian districts. The score of other backward districts was -- Banaskantha, scoring 23.4, and ranking 560; Panchmahals, scoring 25.3, and ranking 532; Tapi, scoring 26.4, and ranking No 515, and so on. Each of these districts has considerable tribal population.
What should be noticeably a matter of concern for the state policy makers is that such poor performance was registered when Gujarat was being projected as the “financial hub” of India, which is why Modi came up with the Gujarat International Finance Tec-city (GIFT) project next to Gandhinagar as one of the smart cities exclusively devoted to exclusively to finance with huge aims to“rival” Singapore, Dubai, even London and New York. Two major districts with considerable industrial presence Surat, Gujarat’s second biggest city, scored 35.0 Inclusix index, ranking 340.
Major states which performed better than Gujarat were – Kerala, with a score of 80.4, 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. While Gujarat registered an improvement of 2.0 in its Inclusix index, Delhi registered an improvement of 14.0, 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.
The Crisil report said, 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.”

Comments

Countrywide protest by gig workers puts spotlight on algorithmic exploitation

By A Representative A nationwide protest led largely by women gig and platform workers was held across several states on February 3, with the Gig & Platform Service Workers Union (GIPSWU) claiming the mobilisation as a success and a strong assertion of workers’ rights against what it described as widespread exploitation by digital platform companies. Demonstrations took place in Delhi, Rajasthan, Karnataka, Maharashtra and other states, covering major cities including New Delhi, Jaipur, Bengaluru and Mumbai, along with multiple districts across the country.

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.

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.

'Gandhi Talks': Cinema that dares to be quiet, where music, image and silence speak

By Vikas Meshram In today’s digital age, where reels and short videos dominate attention spans, watching a silent film for over two hours feels almost like an act of resistance. Directed by Kishor Pandurang Belekar, “Gandhi Talks” is a bold cinematic experiment that turns silence into language and wordlessness into a powerful storytelling device. The film is not mere entertainment; it is an experience that pushes the viewer inward, compelling reflection on life, values, and society.

Budget 2026 focuses on pharma and medical tourism, overlooks public health needs: JSAI

By A Representative Jan Swasthya Abhiyan India (JSAI) has criticised the Union Budget 2026, stating that it overlooks core public health needs while prioritising the pharmaceutical industry, private healthcare, medical tourism, public-private partnerships, and exports related to AYUSH systems. In a press note issued from New Delhi, the public health network said that primary healthcare services and public health infrastructure continue to remain underfunded despite repeated policy assurances.

The Epstein shock, global power games and India’s foreign policy dilemma

By Vidya Bhushan Rawat* The “Epstein” tsunami has jolted establishments everywhere. Politicians, bureaucrats, billionaires, celebrities, intellectuals, academics, religious gurus, and preachers—all appear to be under scrutiny, even dismantled. At first glance, it may seem like a story cutting across left, right, centre, Democrats, Republicans, socialists, capitalists—every label one can think of. Much of it, of course, is gossip, as people seek solace in the possible inclusion of names they personally dislike.

Gujarat No 1 in Govt of India pushed report? Not in labour, infrastructure, economy

By Rajiv Shah A report by a top Delhi-based think tank, National Council of Applied Economic Research (NCAER), prepared under the direct leadership of Amitabh Kant, ex-secretary, Department of Industrial Policy and Promotion (DIPP), Government of India, has claims that Gujarat ranks No 1 in the NCAER State Investment Potential Index (N-SIPI), though there is a dig. N-SIPI has been divided into two separate indices. The first one includes five “pillars” based on which the index has been arrived it. These pillars are: labour, infrastructure, economic conditions, political stability and governance, and perceptions of a good business climate. It is called N-SIPI 21, as it includes a survey of 21 states out of 29.

Gujarat agate worker, who fought against bondage, died of silicosis, won compensation

Raju Parmar By Jagdish Patel* This is about an agate worker of Khambhat in Central Gujarat. Born in a Vankar family, Raju Parmar first visited our weekly OPD clinic in Shakarpur on March 4, 2009. Aged 45 then, he was assigned OPD No 199/03/2009. He was referred to the Cardiac Care Centre, Khambhat, to get chest X-ray free of charge. Accordingly, he got it done and submitted his report. At that time he was working in an agate crushing unit of one Kishan Bhil.

Planning failures? Mysuru’s traditional water networks decline as city expands

By Prajna Kumaraswamy, Mansee Bal Bhargava The tropical land–water-scape of India shapes every settlement through lakes, ponds, wetlands, and rivers. Mysuru (Mysore) is a city profoundly shaped by both natural and humanly constructed water systems. For generations, it has carried a collective identity tied to the seasonal rhythms of the monsoon, the life-giving presence of the Cauvery and Kabini rivers , and the intricate network of lakes and ponds that dot the cityscape. Water transcends being merely a resource; it is part of collective memory, embedded in place names, agricultural heritage, and the very land beneath our feet. In an era of rapid urbanization and climate-induced land–water transformations, understanding this profound relationship with the land–water-scape is strategic for sustainability, resilience, and even survival.

Search This Blog