The country’s digital economy is expected to reach USD 800 billion-level by 2030, helped by a host of favourable factors like growing internet penetration, rising income levels in the society and young population, according to Union Finance Minister Nirmala Sitharaman.
The minister, while addressing the IIT Bombay Alumni Association virtually on Saturday, said, “India has over 6,300 fintechs, of which 28 per cent are into investment technology, 27 per cent into payments, 16 per cent into lending and 9 per cent into banking infrastructure, while over 20 per cent are into other fields.”
These companies, she said, are spread across different activities and not concentrated.
“At the same time, the digital economy in India (was) being pegged at USD 85-90 billion in the calendar year of 2020 and that will see an exponential rise to USD 800 billion by 2030. They should be reaching USD 800 billion in the backdrop of increased internet penetration, rising incomes and also the young Indian population,” the finance minister said.
Talking about the Centre’s initiative and the role of technologies in financial markets, she said the government has made it easier in terms of smooth and easy access to the stock markets, with technology such as e-KYC and e-Aadhaar helping the retail investors come into the market.
The total number of retail investor accounts has almost doubled, from about 45 million as of March 2016 to 88.2 million by March 31, 2021, she added.
Sitharaman, quoting a report, said a 10 per cent rise in internet penetration results in an increase of 3.9 per cent in GDP per capita.
Talking about push to the digital economy, the union minister said the Budget 2022-23 has announced setting up of 75 Digital Banking Units (DBUs).
“They may function from one place but they may serve any number of districts but we are also targeting 75 districts to be covered and I guess the DPU will promote better accessibility of banking services, affordability, convenience, and also more control over their own finances for the customers by providing a one stop digital banking account or digital banking,” she said.
In her Budget speech on February 1 this year, she had said, “In recent years, digital banking, digital payments and fintech innovations have grown at a rapid pace in the country. The government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a consumer-friendly manner.”
On Unified Payments Interface (UPI), Sitharaman said 450 crore transactions entailing transfers of more than Rs 8.2 lakh crore have taken place in February 2022.
