Financial literacy has become a vital element in building a future-ready India in an increasingly complex financial environment. Even though the number of investment opportunities is increasing due to the rapid growth of digital financial services, FinTech, mutual funds and sustainable investment products, the behaviour of investors is influenced by the absence of financial education and their capacity for making sound financial decisions is restricted. This chapter analyses the interaction between investor behaviour, digital innovation, sustainable investing and financial literacy. It includes financial literacy, behavioural aspects that influence investment decisions and the growing importance of Environmental, Social and Governance (ESG) investing. A high level of financial literacy helps investors to better identify risks, diversify their portfolios and make long-term investment decisions that promote sustainable economic growth. The chapter also emphasises the significance of digital technologies such as FinTech, mobile banking, artificial intelligence (AI) and digital investment platforms in enhancing investment accessibility and financial literacy. It also tackles topics including lack of financial literacy, discriminatory conduct, digital marginalisation, fake information and dangers to cybersecurity. The chapter finishes with proposals to promote financial education, digital inclusivity, investor protection and cooperation between financial regulators, governments, academic institutions and financial service providers. It concludes that digital innovation, sustainable investing and financial literacy might foster India’s financial ecosystem, create informed investors and build a robust, inclusive and future-ready economy.