India’s Fintech Ecosystem Set for Transformative Growth: CEA Nageswaran

Chief Economic Advisor V Anantha Nageswaran underscores the transformative impact of Fintech in India, highlighting its potential to drive income, savings, and wealth creation. Speaking at the Global Economic Summit in Mumbai, he cited India's strengths in financial inclusion and anticipated growth in digital lending and Wealth-Tech markets.

Chief Economic Advisor V Anantha Nageswaran emphasized the transformative potential of the Fintech ecosystem in India during his speech at the ninth edition of the Global Economic Summit held in Mumbai. He noted that the rapid development of Fintech solutions could significantly alter income, savings, and wealth creation patterns, thereby fostering social stability in the country.

Nageswaran pointed out the vast growth potential for the Fintech sector in a country as large as India. He highlighted several key Fintech advancements that have set India apart as a model for leveraging technology to promote financial inclusion, streamline government services, and drive innovation within the financial sector.

Discussing the sector's future, Nageswaran stated that the ongoing expansion and evolution of India's Fintech ecosystem would have a profound impact on economic development and the global Fintech landscape. He cited impressive statistics, including the valuation of India's digital lending market at USD 270 billion in 2022 and projections that the Wealth-Tech market would reach USD 237 billion by 2030, supported by innovations such as robo-advisors and micro-investing platforms.

Currently, India is home to over 10,000 Fintech companies operating across various sectors, making it the third largest Fintech ecosystem globally, growing at a CAGR of 14 percent. Nageswaran mentioned that the Reserve Bank of India has proposed a draft framework for recognizing Self-Regulatory Organizations (SROs) in the Fintech sector for stakeholder consultation. To boost the ecosystem further, the government signed a USD 23 million loan agreement to improve access to quality Fintech education, research, and innovation at Gujarat International Finance Tec-City (GIFT-City).

(With inputs from agencies.)