Three out of four Indian adults are not financially literate, a new study has showed. The S&P Ratings Services 'Global Financial Literacy Survey' found that that 76% of Indian adults do not adequately understand key financial concepts, including risk diversification, inflation and compound interest. This is lower than the worldwide average of financial literacy, but roughly in line with other BRICS (Brazil, Russia, India, China, and South Africa) and South Asian nations.
In India, 26% of adults in the richest 60% of households are financially literate, compared to 20% of adults in the poorest 40% of households. Worldwide, 36% of adults in relatively richer households and 27% of adults in relatively poorer households are financially literate.
India's income gap deepened when broken down by topic, the survey said. "Poor adults are 21 percentage points less likely than richer adults to correctly answer the compound interest topic correctly. With regard to interest, the gap is 11 percentage points," it said.
In all, 38% of adults with tertiary education are financially literate compared to 30% of adults with secondary education, and 18% of adults with primary education, the survey found.While the array of financial products available in Asia continues to grow rapidly, the survey found that most consumers lack a general understanding of credit, compound interest and other key concepts.
"Research increasingly shows that saving money is better for development than credit. Yet just 14% of adults in India save at a formal financial institution - and their weak financial skills raise questions as to whether they're getting the most out of their money," the survey noted.
Only 14% of Indian adults correctly answered the question on knew about risk diversification. Conversely, 56% answered correctly on the inflation question correctly. About 39% of adults who have a formal loan are financially literate, while more than a quarter (27%) of formal borrowers were found to be not financially literate. Only about half of the participants (51%) understood compound interest.
According to the survey, three-quarters of Asian adults and two-thirds of adults worldwide are not financially literate.
In comparison, 57% of adults in the US and 67% in UK are financially literate. In Asia, Singapore is home to the highest percentage of financially literate adults (59%), followed by Hong Kong and Japan (both at 43%). And less than a third of adults in China (28%) are financially literate.
The survey also shows a material gap between men and women in almost every country. WWorldwide, there is a five percentage points gender gap, with 65% of men not being financially literate compared with 70% of women.
In India, the gap was wider with 73% of men and 80% of women not being financially literate. The survey was based on interviews of more than 150,000 adults across 140 countries. Individuals were tested on their knowledge of four basic financial concepts: numeracy, risk diversification, inflation, compound interest (saving and debt).
Gold imports in value terms tumble 36% in November
The country's gold imports fell by 36.48 percent to USD 3.53 billion in
November this year on account of sluggish global prices.
The world's second-biggest gold consumer had imported gold worth USD
5.57 billion in the same month last year. Data released by the Commerce
Ministry showed that import of both gold and silver has declined in
value terms in November this year.
Even the overseas purchase of pearls, precious and semi-precious stones
has taken a hit.
Silver imports declined by over 55 percent to USD 285.01 million in
November this year from USD 643.71 million in the year-ago period. In
the London market, the average gold prices had fallen to USD 1,088 per
ounce in November this year while its rates were high at USD 1,176 in
the same period last year.
Silver prices had also dropped in the same period. That apart, import of
pearls, precious and semi-precious stones declined 53.49 percent to USD
977.51 million from USD 2,101.75 million in the said period.
As per the data, exports of gems and jewellery too narrowed by about 22
percent to USD 2.89 billion in November this year, as against USD 3.68
billion last year.
Experts said gems and jewellery shipments have been declining for the
last few months in the wake of sluggish global demand.
According to the All India Gems and Jewellery Trade Federation, gold
imports are expected to cross 1,000 tonnes this year, buoyed by a sharp
fall in global prices, as against 900 tonnes in 2014. Gold is the
second-largest import item for India after petroleum.
Higher gold import bill adversely affects the country's current account
deficit, which takes hold when value of imports is more than that of
exports.
Read more at: http://www.moneycontrol.com/news/economy/gold-importsvalue-terms-tumble-36november_4591761.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/economy/gold-importsvalue-terms-tumble-36november_4591761.html?utm_source=ref_article
No comments:
Post a Comment