SUMMARY
- PM Modi has stated that the fintech sector has received a record investment of more than $31 billion along with witnessing a startup growth of 500% in the last 10 years.
- The PM highlighted UPI as a prime indicator of the nation’s success in the fintech sector.
- He added that the government is focusing on the development of advanced technologies and regulatory frameworks to fortify financial markets.
PM Modi stated while addressing the Global Fintech Fest 2024, “In the last 10 years, the (fintech) industry has received a record investment of more than $31 billion along with witnessing a startup growth of 500%.”
The PM commended India’s Unified Payments Interface (UPI), highlighting it as a prime indicator of the nation’s success in the fintech sector, with India now representing over half of the global digital transaction landscape.
He further emphasized that services such as remote healthcare, digital education, and skill development would not be feasible without the advancements in fintech. The fintech revolution in India is significantly contributing to enhancing the dignity and quality of life.
Amidst global concerns over the “dangers of a parallel economy,” the Indian fintech ecosystem has been effective in challenging such systems by introducing transparency, the Prime Minister noted.
To further strengthen the fintech sector, the government is implementing policy changes at the necessary level, the Prime Minister stated, providing examples such as the abolition of Angel Tax, the enactment of the Digital Personal Data Protection Act, and a $1 billion investment to support research and development in the field.
The PM affirmed, “I am confident that India’s Fintech ecosystem will enhance the ease of living of the entire world. Our best is yet to come.” Additionally, the government is focusing on the development of advanced technologies and regulatory frameworks to fortify financial markets, he added.
Concerns over the increasing incidence of cyber fraud in the country have prompted Prime Minister Modi to call for an enhancement in digital literacy among regulators to prevent such fraud from hindering the growth of the domestic fintech ecosystem.
These remarks come at a crucial moment, as the fintech market in India continues to expand at a rapid pace. As per Inc42, India boasts over 24 fintech unicorns and 36 soon-to-be unicorns. These startups are competing for a share of the rapidly growing fintech market, which is projected to reach a $2.1 trillion opportunity by 2030.
The Economic Survey 2023-24 also outlined India’s ambition to become a “fintech nation,” leveraging the country’s digital public infrastructure (DPI) as a foundation for this goal. PM Modi recognized the DPI’s contribution for the innovative products in fintech such as QR code and the use of soundboxes, neobanking, digital-only banks, and digital twins.
