Prime Minister Narendra Modi on Friday lauded India's fintech startup ecosystem, urging them to continue building locally but for a global audience.
Speaking at the Global Fintech Fest 2024 in Mumbai, PM Modi said he can see India's future at the pavilions and exhibitions of the event. "Earlier, foreigners used to marvel at India's cultural diversity. Today, they marvel at our fintech diversity as well," he said.
In the last 10 years, Indian fintech startups have seen investment worth $31 billion and have grown 500%, the prime minister said. This is made possible by "inexpensive data, smartphones and Jan Dhan scheme," he said.
"Cash was king, now half the world's real-time digital transactions happen in India. India's UPI is a shining global example," Modi said, adding that India's digital public infrastructure has helped take fintech to the masses.
Fintech has helped quell a parallel economy of black money too, he said. "Joining formal systems are beneficial to people now. Gaps between urban and rural bridged by fintech."
Financial services like loans, credit cards, investments and insurance are now accessible beyond India's top cities, Modi said. "People in small towns and villages are now investing in shares, mutual funds. Demat accounts can be created from home and the time taken to open one has reduced significantly."
The journey from currency to QR code took ages, but now growth is much faster, he said. "Innovations such as neobanks and digital twins are taking fintech to next level. Risk management, fraud detection, customer experience will be transformed. India is launching fintech products at a global scale," he added, taking the example of ONDC and E-Rupee.
Modi said he understands the risks of artificial intelligence. "India has moved for a global framework on AI usage. We also removed angel tax during Budget and are also creating data protection framework for ease of doing business." He also took cognisance of the issue of cyberfrauds.
"Cyberfrauds need to be dealt with. They should not become a barrier to growth. Cybersolutions are quickly broken due to frauds nowadays," he said.
The government is focussed on creating strong, transparent and efficient systems in India and is working on strengthening financial markets with technology and better regulations, he said.
"India's fintech ecosystem will help Indians lead a quality lifestyle. I have no doubt on young India's talent, and our best is yet to come," he said, adding that he will come for the 10th edition of the Global Fintech Fest as well.
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