In a recent address at the ninth Global Economic Summit in Mumbai, Chief Economic Advisor (CEA) V. Anantha Nageswaran underscored the transformative potential of fintech solutions. He noted that the rapid advancement in this sector is set to revolutionize income, savings, and wealth creation across India. Nageswaran emphasized that these developments are expected to foster greater social stability throughout the country.
Nageswaran stressed that India, with its vast population and rapidly expanding digital infrastructure, has immense potential for growth in the fintech sector. He pointed out that India has become a global model for using technology to promote financial inclusion, enhance government services, and drive innovation in the financial sector.
The CEA shared key insights into the fintech landscape, noting that India’s digital lending market was valued at USD 270 billion in 2022. He also mentioned the significant growth anticipated in the Wealth-Tech market, which is expected to reach USD 237 billion by 2030, according to a report by ANI. This growth will be fueled by the increasing number of retail investors, supported by fintech innovations such as robo-advisors and micro-investing platforms.
Nageswaran underscored the fact that India is home to over 10,000 fintech companies operating across various sectors. India’s fintech ecosystem is currently the third largest in the world and is growing at a compound annual growth rate (CAGR) of 14%. To further support this growth, the Reserve Bank of India (RBI) recently released a draft framework for the recognition of a Self-Regulatory Organization (SRO) for the fintech sector, inviting stakeholder consultations.
The Indian government is also actively working to develop the fintech ecosystem. As part of these efforts, it has signed a USD 23 million loan agreement to enhance access to quality fintech education, research, and innovation at the Gujarat International Finance Tec-City (GIFT-City).
