Rural India (unlike urban India) is relatively high trust environment. Everybody knows each other and there are lots of shared ethical values. But they still have to build their houses one brick wall at a time (lack of access to home loans) and be at the risk of financial ruin due to unpredictable life events (lack of access to insurance).

Urban India is a very low trust environment, but people still have access to things like home loans, insurance and capital markets (equity and loans).

> lack of good governance (bad or non-existant laws, corruption etc)

I agree that good governance is a necessity for development of financial markets, but not sure what it has to do with being a high trust or low trust society.