Fintech Sector Needs to Grow for Viksit Bharat Goal: Amitabh Kant

The growth of fintech sector is crucial for India to become a developed nations by 2047, said former Niti Aayog CEO and G20 Sherpa Amitabh Kant on Friday.

He said if India has to become a developed country by 2047, the economy will have to grow to $35 trillion from nearly $4 trillion now. For this to happen, the country’s GDP has to grow about nine times, per capita income has to grow about eight times and manufacturing has to grow about 16 times.

“And in all this, it is very important that the fintech sector continues to grow and expand so that we are able to provide credit at all levels in the society,” Kant said while speaking at the launch of India Fintech Foundation, a proposed self-regulatory organization, during the second day of Startup Mahakumbh.

Kant said that growth and innovation in the fintech sector is being driven by a tech savvy youth who have access to capital, government initiatives, and advancement in internet and mobile technology.

India ranks third in terms of the number of fintechs and fintech unicorns. The fintech ecosystem has witnessed a year-on-year revenue growth of 56% to about $25 billion in 2023, he said.

Kant said that India is estimated to have about 150 fintech unicorns with a combined valuation of $500 billion by 2030 while fintech revenues may reach $190 billion.

Kant emphasized the role of fintech SROs in being vigilant about emerging risks, particularly cyber security. He advised for responsible innovation in the fintech sector so that new products do not inadvertently exclude or harm vulnerable population.

“Innovation is the lifeblood of fintechs and as we innovate, we must do so responsibly, ensuring that new products and services do not inadvertently exclude or harm vulnerable population,” Kant said.