06/07/2024– India’s fintech sector, a crucial pillar of the nation’s economic framework, is expected to make a substantial impact by contributing an estimated additional $400 billion to the national economy over the next seven years. Globally recognized for its fintech advancements, India’s fintech industry has significantly enhanced access to financial services for previously underserved populations.
Industry stakeholders highlight that fintech companies have been urging the government to prioritize initiatives and incentives that facilitate their expansion into underserved Micro, Small, and Medium Enterprises (MSMEs). These firms anticipate government support to foster partnerships with traditional institutions and promote innovative solutions, all while ensuring financial stability.
During the recent interim budget, fintech firms appealed to Finance Minister Nirmala Sitharaman for advocacy on behalf of MSMEs’ financial inclusion, streamlining lending processes, introducing incentives for financial inclusivity, and implementing tax benefits to propel sector growth.
Comments
S Anand, the esteemed Chief Executive Officer and Founder of PaySprint,
“As we approach Budget 2024, the fintech industry in India eagerly awaits policy directions that will shape our future trajectory. This budget arrives at a critical juncture, offering a strategic opportunity to reinforce India’s position as a global leader in digital innovation and financial technology.
From a fintech perspective, one of the primary expectations revolves around fiscal incentives and regulatory frameworks that foster innovation and accelerate digital transformation. As technology continues to redefine financial services, there is a pressing need for policies that support entrepreneurship, attract investments, and promote the adoption of advanced technologies such as blockchain, AI, and digital identity verification. Clear and forward-looking regulations will be crucial in enabling fintech firms to operate with certainty and scale their innovations effectively.
Financial inclusion remains a cornerstone of our collective vision for India’s economic future. The budget presents an opportunity to enhance access to digital financial services, particularly in underserved and rural areas. Initiatives that bolster digital infrastructure and incentivize fintech solutions tailored to diverse customer segments will be instrumental in advancing financial inclusion goals. This includes measures to expand the reach of digital payments, improve digital literacy, and ensure that every citizen has access to affordable and secure banking services.
In addition to fostering innovation and expanding financial access, sustainability and responsible business practices are increasingly becoming priorities for the fintech industry. Budgetary provisions that encourage green fintech initiatives, promote ESG (Environmental, Social, and Governance) principles, and incentivize sustainable growth practices will align with global trends and enhance India’s reputation as a responsible player in the digital economy.
Cybersecurity and data privacy are paramount concerns in an increasingly interconnected digital landscape. Strengthening cybersecurity frameworks and ensuring robust data protection measures will be critical to maintaining consumer trust and safeguarding the integrity of financial transactions. The budget provides an opportunity to introduce comprehensive cybersecurity policies that mitigate risks and enhance resilience against cyber threats.
As a participant in India’s vibrant fintech ecosystem, I am optimistic that Budget 2024 will reflect a holistic approach to fostering innovation, promoting financial inclusion, and strengthening regulatory frameworks. By aligning policy priorities with industry needs, the government can unleash the full potential of fintech to drive inclusive economic growth, create jobs, and elevate India’s stature as a global fintech hub.
In conclusion, I believe that Budget 2024 has the potential to set a transformative agenda for the fintech sector, paving the way for a future where technology-driven financial services empower every Indian citizen and contribute to the nation’s economic prosperity.”