A widely used national benchmark for a financial literacy dissertation in India is the NCFE Financial Literacy and Inclusion Survey 2019, which measured all-India financial literacy at 27 per cent among adults aged 18 to 80, using a rule of at least 15 points out of 22 across attitude, behaviour and knowledge. If you are writing a Commerce, MBA Finance or Economics dissertation on financial literacy, that sentence defines your construct, your benchmark and your scoring rule in one go. This guide sets out what the survey reports, how financial literacy is defined and scored, which theories and designs fit, and ten titles to adapt.
The figures a dissertation can cite, with source and year
All figures below are from the Executive Summary of the NCFE Financial Literacy and Inclusion Survey 2019 (NCFE-FLIS 2019), which the National Centre for Financial Education published after fieldwork in 2018–19; the survey was carried out by Development & Research Services Pvt. Ltd. for NCFE and was the second of its kind, after a baseline survey in 2013–14.
| Measure | Figure | Source and year |
|---|---|---|
| Overall financial literacy, all India | 27 per cent | NCFE-FLIS 2019, Executive Summary |
| Total sample | 75,140 respondents (rural 47,905; urban 27,235) | NCFE-FLIS 2019, Executive Summary |
| Respondents | Adults aged 18 to 80, one permanent resident per selected household | NCFE-FLIS 2019, Executive Summary |
| Zones, highest to lowest | West 37, North-East 33, North 32, South 30, Central 21, East 20 per cent | NCFE-FLIS 2019, Executive Summary |
| Urban versus rural | 33 per cent urban, 24 per cent rural | NCFE-FLIS 2019, Executive Summary |
| Male versus female | 29 per cent male, 21 per cent female | NCFE-FLIS 2019, Executive Summary |
| States above 50 per cent | Goa, Chandigarh and Delhi | NCFE-FLIS 2019, Executive Summary |
| Lowest three states | Odisha 11, Sikkim 10, Chhattisgarh 9 per cent | NCFE-FLIS 2019, Executive Summary |
| Most financially literate age group | 18 to 29 years | NCFE-FLIS 2019, Executive Summary |
| Occupation ranking | Government employees first, then private employees, retired persons, self-employed and students | NCFE-FLIS 2019, Executive Summary |
Read the table as a benchmark, not as a verdict on your respondents. The survey sampled households across all states and union territories; a sample of commerce students in one city is a different population, and your findings should be compared with these figures only with that difference stated.
How financial literacy is defined and scored
The survey defines financial literacy as “a combination of awareness, knowledge, skill, attitude and behavior necessary to make sound financial decisions and ultimately achieve individual financial well-being.” It treats the construct as three components, and, following OECD guidelines, regards a person as financially literate if the combined score is at least 15 out of 22, with a minimum of 3 out of 5 in financial attitude, 6 out of 9 in financial behaviour and 6 out of 8 in financial knowledge.
| Component | Maximum score | Minimum to count as literate |
|---|---|---|
| Financial attitude | 5 | 3 |
| Financial behaviour | 9 | 6 |
| Financial knowledge | 8 | 6 |
| Combined | 22 | 15 |
Note the arithmetic: 5 plus 9 plus 8 is 22, and the component minimums (3, 6 and 6) sum to 15, so the combined threshold equals the sum of the component minimums. A respondent can therefore fail by missing a single component minimum even with a high total. If your dissertation reuses this rule, say so, because it is a classification rule, not a continuous score. Write it into your operational definition as set out in our guide to operational definitions for an Indian thesis.
The Executive Summary does not reproduce the questionnaire items. If you want to score your own sample the same way, obtain the items from the full NCFE report or write to NCFE; otherwise use the survey as a published benchmark and measure financial literacy with a validated instrument you can cite in full.
Theories and prior work that frame the construct
Two reviews are standard starting points for Chapter 2: Lusardi and Mitchell (2011), “Financial literacy around the world: an overview”, Journal of Pension Economics and Finance, 10(4), 497–508; and Lusardi and Mitchell (2014), “The economic importance of financial literacy: theory and evidence”, Journal of Economic Literature, 52(1), 5–44. They bring together measurement approaches and evidence on how financial literacy relates to economic decisions, which is the literature your hypotheses will draw on. Add the NCFE definition above and the OECD-based scoring rule, and your conceptual framework has a definition, a measurement convention and two reviews behind it. To build the diagram itself, see our guide to the conceptual framework for an MBA dissertation.
Designs that work for a financial literacy dissertation
- Level study. Measure financial literacy in a defined group, such as final-year commerce students, and report the share meeting a stated rule alongside the national 27 per cent, with the comparison caveat.
- Group comparison. Compare levels by gender, age, occupation or education, mirroring the breakdowns the survey reports so that your results can be set beside them.
- Relationship study. Relate financial literacy to a behaviour such as saving, investing in a particular product, or use of digital payments.
- Intervention study. Measure before and after a financial education programme delivered to one class or one group, with the same instrument at both points.
For the statistics, our decision table for an accounting or finance dissertation matches design to test. Before you finalise the questionnaire, map each objective to a variable and each variable to the items that measure it, so that every hypothesis below has data behind it.
Hypotheses you can test: an illustrative set
| Objective | Null hypothesis | Likely test |
|---|---|---|
| To assess financial literacy of [group] using [instrument] | None needed for a descriptive objective | Percentages meeting the stated rule; component means |
| To compare financial literacy between [male and female respondents] | H0: There is no significant difference in financial literacy between [male and female respondents] | t-test, or Mann-Whitney U; chi-square for the literate/not-literate split |
| To compare financial literacy across [occupation or education groups] | H0: There is no significant difference across [groups] | ANOVA, or Kruskal-Wallis |
| To examine the relationship between financial literacy and [saving or investment behaviour] | H0: There is no significant relationship between financial literacy and [behaviour] | Correlation or logistic regression |
The choice among these depends on your data: check the distribution of your scores before you choose between the parametric and non-parametric versions. Sample size follows from the design and the tests you plan, so calculate it from your analysis plan and state the method in Chapter 3.
Ten researchable titles to adapt
Bracketed items are yours to fill in with a real group, place and instrument.
- Financial literacy of [final-year commerce students] in [city]: a level and gender comparison
- Financial literacy and investment behaviour of [young salaried employees] in [city]
- Financial literacy of [women in self-help groups] in [district]
- Financial attitude, behaviour and knowledge among [college students]: a component analysis
- Financial literacy and use of [digital payment platforms] among [small traders]
- Effect of a [financial education programme] on the financial knowledge of [school students]
- Financial literacy and retirement planning among [government and private employees]
- Rural and urban differences in financial literacy in [state]: a comparison with the national benchmark
- Financial literacy and [credit card or loan] decisions among [postgraduate students]
- Financial literacy as a predictor of [mutual fund participation] among [first-time investors]
Where to find more data and how to describe it
The survey is one source of several. For official statistics by discipline, see our guide to where to find data for your Indian thesis. Whatever you use, describe each source by its publisher, title, year and coverage, and say what it can and cannot support in your study. When you cite the NCFE survey, cite the Executive Summary or full report by title and year, and state which figure you used.
Where the survey fits in each chapter
Chapter 1. Use the national figure in the statement of the problem, once, with its source and year: for example, that the survey measured overall financial literacy at 27 per cent, and that the gap between urban and rural respondents was 33 against 24 per cent. Then say what your study adds in a group or place the survey could not break down. The worked examples in our guide to the statement of the problem show how a national figure becomes a research gap.
Chapter 2. Summarise the survey’s definition and scoring, then place it beside the reviews and any studies of your own group. Keep the survey as a data source and the journal studies as the evidence on relationships.
Chapter 3. State whether you scored respondents with the survey’s rule or with another validated instrument, and give the number of items, the response format and the scoring in your operational definitions.
Chapter 4. Report your own percentages and component scores first. Only then, in one clearly labelled paragraph, compare them with the national figures, restating how the populations differ.
Five mistakes in a financial literacy chapter
- Comparing a student sample directly with the 27 per cent. The survey covers adults aged 18 to 80 in households across India.
- Using a total score only. The survey’s rule needs component minimums as well as a combined threshold.
- Quoting the 2013–14 figure as current. Cite the survey year you use.
- Calling a self-reported attitude a measure of knowledge. Keep the three components separate.
- Skipping reliability. Report it for your own sample, as in our guide to the acceptable Cronbach’s alpha for a thesis.
Writing the chapter around the data
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Frequently asked questions
What is the financial literacy rate in India?
The NCFE Financial Literacy and Inclusion Survey 2019 measured overall financial literacy at 27 per cent among adults aged 18 to 80, using a rule of at least 15 out of 22 across attitude, behaviour and knowledge.
How does NCFE define financial literacy?
As a combination of awareness, knowledge, skill, attitude and behavior necessary to make sound financial decisions and ultimately achieve individual financial well-being.
How is a person classed as financially literate in the survey?
Following OECD guidelines, by a combined score of at least 15 out of 22, with minimums of 3 in attitude, 6 in behaviour and 6 in knowledge.
What was the sample of the 2019 survey?
A total of 75,140 respondents, of whom 47,905 were rural and 27,235 urban, aged 18 to 80, with one permanent resident interviewed per selected household.
Which zone had the highest financial literacy?
The West zone at 37 per cent, followed by the North-East at 33, North at 32, South at 30, Central at 21 and East at 20 per cent.
Is there a gender gap in financial literacy in India?
The 2019 survey reports 29 per cent of male respondents as financially literate against 21 per cent of female respondents.
Can I compare my student sample with the national figure?
Only with care. The survey covers adults aged 18 to 80 in households across the country, so state how your sample differs and avoid claiming that your group is above or below the national average without that caveat.
Where can I get the survey questionnaire?
The Executive Summary does not reproduce the items. Obtain them from the full NCFE report or write to NCFE, and cite the report by title and year.
Which theories or reviews should I cite for financial literacy?
Lusardi and Mitchell’s 2011 and 2014 reviews are standard starting points, together with the NCFE definition and the OECD-based scoring rule used in the survey.
What is the difference between financial literacy and financial inclusion?
The survey treats financial literacy as awareness, knowledge, skill, attitude and behaviour for sound decisions, and financial inclusion as access to and use of regulated financial products and services. They are measured separately.