India’s start-up sector has seen tremendous growth in the last few years. This was also a highlight of Prime Minister Narendra Modi’s Independence Day speech from the Red Fort. “Today my youth have propelled India to a certain position in the world’s first three startup economy systems. The youth of the world are amazed to see this power of India. Today the world is technology driven and the coming era is going to be influenced by technology,” the Prime Minister said.
Launched in 2016, Startup India has been instrumental in nurturing the entrepreneurial spirit in the country while also contributing to its economic development. According to the Economic Survey 2022-23, more than 9 lakh jobs have been created by start-ups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Corporate Affairs. At the end of April 2023, there were 98,119 government recognised start-ups across 56 sectors in the country. Out of these, 3,085 startups are in the fintech sector.
The Fintech sector has tremendous growth potential and it remains one of the large untapped markets. This growth of fintech startups in the country can be attributed to rapid adoption of technology, increasing penetration of affordable smartphones and a growth of digital infrastructure including launch of Aadhaar and UPI. With UPI going international, the fintech sector will get a further boost. This would also strengthen the global presence of UPI.
The growth in the fintech sector has also been made possible by the Digital India mission. Several fintech startups have steered the digital revolution in the country towards making India a cashless economy. From neighbourhood vegetable vendors to coffee houses, the ubiquitous presence of QR Codes has made mobile payments the norm. This reflects the ease of adoption of technology-driven services by people that has made their everyday lives easier.
With the aim to make India a global hub for Fintech, the government launched the International Financial Services Centre (IFSC) at GIFT City in Gujarat. From banking to insurance management, IFSC-GIFT City has seen phenomenal growth across the entire spectrum of financial services. In order to expand its presence globally, International Financial Services Centre Authority (IFSCA), the regulator for IFSC, has signed several MoUs with other countries. This would provide a flow of information and global best practices that will help IFSC-GIFT develop further into a preferred international destination for financial services.