IBEF: September 09, 2021
The government's various initiatives have resulted in rapid growth in the fintech industry, which is expected to triple in value to Rs. 6,20,700 crore (US$ 82.7 billion) by 2025, according to Minister of State for Finance Mr. Bhagwat K Karad.
India, he added, is a frontrunner among emerging economies in terms of financial technology adoption, with an adoption rate of 87% in March 2020, compared to a global average of 64%.
“The fintech market in India was valued at Rs. 1,920 billion (US$ 26.09 billion) in 2019. It is predicted that by 2025, the market would have grown to Rs 6,207 billion (US$ 82.7 billion). India's skilled manpower and technological ability make it an ideal location for financial technology development” he mentioned this while speaking at an Assocham virtual event.
He went on to say that India is the world leader in digital transactions, with total digital transactions exceeding US$ 25 billion.
India has a great Fintech ecosystem, including access to bank accounts through the PM Jandhan Yojana, digilockers, and scalable platforms like UPI.
“The government is working to create a robust and secure digital environment, and we are optimistic that public-private partnerships can expand financial inclusion and deliver contemporary financial services to all Indians,” he added.
He noted that modern technology may be the most potent instrument for increasing financial inclusion, as seen by smooth cash transfers into crores of accounts at the click of a button during the pandemic period.
During the pandemic, financial inclusion played an essential role in providing cash transfers to the poor and vulnerable, he noted.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.