Fintech Has The Potential To Provide Inclusive Growth, Development: PM Modi

SUMMARY

PM Modi lauds the success of the ‘India Digital story’ and the rapid adoption of the fintech ecosystem in the country

Public and private sectors should leverage synergies and seize opportunities emerging out of the current global environment: PM Modi

The meeting with economists comes close on the heels of the Union Budget that is slated to be presented by FM Nirmala Sitharaman on February 1

Prime Minister Narendra Modi on Friday (January 13) reportedly said that fintech players have the potential to provide inclusive growth and development.

Interacting with industry experts ahead of the Union Budget, PM Modi lauded the success of the ‘India Digital story’ and the rapid adoption of the fintech ecosystem in the country.

Noting that the emerging global environment offers new opportunities in arenas such as digitisation and healthcare, the prime minister called on the public and the private sector to think out of the box and seize such opportunities.

The meeting was also attended by Finance Minister Nirmala Sitharaman, Niti Aayog Vice-Chairman Suman Bery and other economists.

News agency PTI reported that the economists offered suggestions on ways to sustain India’s development momentum going forward.

The meeting took place weeks ahead of the presentation of the Union Budget 2023-24 by FM Sitharaman on February 1. As a result, startups are waiting with bated breath to see if the government grants any sops for the ecosystem which has been battered by global headwinds and a funding winter.

Indian startups raised $25 Bn in funding in 2022, a decline of 40% from the previous year. The drop was largely the result of the negative market sentiment that has gripped the world.

Despite the tumultuous year, the country minted 21 unicorns in 2022, while ecommerce emerged as the top funded sector.

A report by the Reserve Bank of India (RBI) recently estimated that India’s digital economy scaled 2.4X faster than the overall economy of the country during the 2014-19 period. Last year, PM Modi said that the country’s digital economy was well poised to grow to $1 Tn by 2025.

The growth has largely been led by increasing smartphone and internet penetration, and growing disposable income. Home to 622 Mn internet users at the end of 2020, this number is expected to soar to 900 Mn by 2025.

Besides, state-backed India Stack projects such as Unified Payments Interface (UPI), the nascent Open Network for Digital Commerce (ONDC) and Aadhaar have also provided a boost to digital services in the country.

The entry of new-age tech startups has also catalysed the growth of the space and opened a floodgate of digital services for Indians.