International Women's Day: NITI Aayog report shows Kerala women much ahead in financial independence, financial inclusion

The NITI Aayog report, titled 'From Borrowers to Builders - Women's Role in India's Financial Growth Story,' has shed light on the increasing financial independence among women across India. This report highlights how women in Kerala are progressively managing their credit profiles and demonstrating robust financial acumen. Accounting for 6% of the nation's women borrowers, Kerala is ranked sixth in terms of absolute numbers, reflecting the state's commitment to financial inclusion and empowerment, despite its relatively small population size compared to other leading states.

Maharashtra leads the country with a 15% share of women borrowers, followed by Tamil Nadu with 11%, Karnataka with 9%, and both Uttar Pradesh and Telangana with 7% each. Kerala stands alongside Telangana at 6%. The report underscores that 44% of women engaging in self-monitoring witness improvements in their credit scores within six months, exemplifying the benefits of increased financial awareness among women in the state. "Women are increasingly demonstrating financial independence through self-monitoring and credit management. This is a testament to their growing financial acumen," the report notes.

The study identified that a significant segment of empowered women borrowers in Kerala are from semi-urban areas, followed by those in rural and urban areas. This distribution indicates a widespread embrace of financial self-management across various demographic segments within the state. "This shows the high rate of financial inclusion in the state. Kerala’s ranking would have gone up if the parameter was self-monitoring as a percentage of borrowers," stated Kiran Kumar Kakarlapudi, assistant professor at Gulati Institute of Finance and Taxation, Thiruvananthapuram.

Kerala's achievements in financial inclusion are remarkable, given its smaller population compared to other states. The NITI Aayog report highlights that the state's position is based on the absolute number of borrowers. "The ranking is on the basis of the absolute number of borrowers. Kerala’s population size is relatively small and still it is positioned sixth," the report stated. This achievement is indicative of the effective financial literacy and awareness initiatives undertaken in the state. 

The emphasis on self-monitoring is seen as a significant indicator of financial automation and empowerment for women. "Self-monitoring is an indication of women’s financial automation and empowerment. It reflects how women are able to manage finances on their own. It is intrinsically linked to financial literacy and awareness about financial products," said Kakarlapudi. This aspect of financial management is crucial for women's empowerment, enabling them to take control of their financial futures and contribute actively to India's economic growth.