The study examines the linkages between financial literacy, banking services, and economic growth in India. Financial literacy plays a crucial role in enhancing individuals’ ability to understand and effectively use banking services, which in turn supports savings, investment, and productive economic activities. To examine the relationship between financial literacy, usage of banking services, and economic growth in India. Using a sample of 100 respondents selected through a simple random sampling technique, the study analyses how financial literacy influences access to and utilization of banking services and its perceived contribution to economic growth. Primary data were collected using a structured questionnaire, and appropriate statistical tools were employed for analysis. The findings highlight that higher levels of financial literacy are associated with better usage of banking services, contributing positively to economic development. The study underscores the importance of strengthening financial literacy initiatives and inclusive banking policies to support sustainable economic growth in India. The article critically identifies the relationship between financial literacy, banking services, and the economy development in the context of India. Through theoretical frameworks, empirical evidence and policy environments, the article mentions the power of financial literacy to enable individuals to make better financial choices, accessibility and efficiency of bank services to participation in the economy and combination of both factors to support sustainable economic growth. The article also outlines major challenges, policy initiatives and suggestions to make the financial ecosystem in India stronger..