FinTech revolution has led to inclusion, better governance: FM

Finance Minister Nirmala Sitharaman, during the CII Global Economic Policy Forum 2023 event today, said India's digital technology adoption has been adapted by people across sections of society and that the fintech revolution has led to inclusion, better governance and saving of money via tech usage.

The FM said learnings from India’s G20 presidency indicate the need for greater discussion and a global engagement to understand where exactly the world will have to move from today, for the next 20-25 years.

"The digital technology adoption is one thing where the Government had invested and built the infra for -whether for communication, marketing, health and health service provisions or whether it was financial tech for inclusion. It proved that not only do our innovations work but have been rapidly scaled up and adapted by people across sections of society," Sitharaman says at the CII event.

She also congratulated the premier business association for having initiated a process, which she said was needed if the emerging market economies (EMEs) have to become growth engines.

She adds the base energy requirement can't be filled by renewable energy sources, but it is possible to think in terms of spreading renewable energy in such a way that individual participation is ensured. "India's success in rapidly moving in the renewable energy space, particularly in solar is because of both the large park establishments and the roof-top and the farm-hedge-based social panels that are happening simultaneously."

The FM also elaborated on the role of the emerging markets and the "Global South" in devising technology-driven instruments to make economies transparent and well-governed and to make sure that everybody benefits from governance. "India’s FinTech revolution, which showcases itself through the payment revolution happening digitally, has shown that it is possible to have inclusion, better governance, and save money through technology."

The FM's comments today mark the extension of her remarks during the last month's Indo-Pacific Regional Dialogue 2023 in New Delhi where she said India was expected to emerge as the "third-largest economy" by 2027, overtaking Japan and Germany. This fiscal year, too, she said, India was expected to record below 7% GDP growth, which will be the highest among other major economies.

The FM had said over the foreseeable future, India’s comprehensive national power is going to remain "inextricably" linked to the ocean. The Modi government seeks to position India as a hub in new and diversified supply chains and value chains across the Indo-Pacific and, indeed, across the world, she said.

Besides, in her post on social media platform X on Wednesday, the FM said "phone banking" during the 10 years of UPA rule was the method through which political interference adversely impacted most Indian banks, leading them into a loss-making situation.

She said calls were made during this period to approve loans for individuals who did not meet the creditworthiness criteria. She also stressed the responsibility to address the ensuing challenges and implement reforms to rectify the situation ultimately rested on their shoulders to overhaul the Indian banking sector.