Rural India still continues to hold assets in two principal forms – housing and jewellery. And these two assets form 93% of the total net worth of the rural average household, according to a study by Chennai-based Institute for Financial Management and Research (IFMR) for the National Stock Exchange (NSE).

So, we can see that consumption assets (house, electronics) form 54% of the portfolio while jewellery (44%) is the predominant investment asset.

The study analysed the asset portfolios of a set of 143,632 households - 69% of sample households reside in Tamil Nadu while Odisha and Uttarakhand account for 19% and 12% households, respectively.

The study says: “It is clear that there is an urgent policy imperative to extend the benefits of the formal financial system to rural households and provide them access to financial instruments.”

(Image Credit: Wikimedia)

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