Five Major Future Trends in FinTech The next decade is crucial for India; entrepreneurial spirit and innovative minds of Indians will help the country achieve its economic targets

The Indian technological landscapes are shaped and moved by the brilliant young minds of Indians who brought innovation and creativity in software technology and the IT revolution—a significant milestone in the evolution of the Indian economy. We have made a lot of progress but still, "The reforms had to keep pace with that outburst of innovation and technology," said Dammu Ravi, secretary of economic relations, Ministry of External Affairs.

Data Revolution

We have witnessed several revolutions around the world and every revolution has transformed societies. And, now we are in the third decade of the 21st century and the data revolution is all set to transform and bring major changes across the globe and in that space, fintech is significantly important. "We are today at the crossroads of an inflection point. And what it means is that around the world, policymakers, and leaders are somewhat in a state of dilemma as to whether the policies that they're making, the technology that is driving the economies, are actually bringing about major shifts in the way people live," explained Ravi.

Digital Public Infrastructure

While shedding light on how global governance has failed to address inclusivity issues, Ravi said, "Honestly speaking, there is that sense of dilemma, a sense of diffidence, that we have not addressed that gap. How do you explain that the world GDP is $85 trillion, world trade is $62 trillion—both services and goods included—and global wealth stands at $400 trillion, with investment flows at $125 trillion, yet the inclusivity issue and the gaps have not been addressed."

This is the biggest challenge for governments around the world. However, India has made significant progress with 1.4 billion people registered under Aadhaar (Unique Identification), 500 bank account centers, and about 97 percent of the beneficiaries in rural areas. Additionally, there are 950 million mobile phone connections. Nevertheless, India is aiming to build a fully digital public infrastructure by 2047.

"DPI provides scalability, interoperability, and brings in efficiency. So, in a way, it can be truly transformative if you are able to bring it to a scale that includes all its regions. The ability to reduce documentation, the ability to reduce the physical movement of people for goods and services, even for finances, is actually empowering the common man," Ravi further added.

Digital Currencies and Green Finance

India will be witnessing the next stage of the fintech revolution which is digital currencies, digital credit, and all that is going to make a big change for the MSME and in the agriculture sector, which are going to create jobs in a significant way than the big interests could ever do. Furthermore, he explained how India is taking charge of green finance within the G20. "Within the G20, we have been talking about green finance, the bond market, and pension funds, and India has been playing a constructive role in all of this. Most importantly, we believe that the Global South agenda, which has taken center stage within the G20, should be a priority. For a long time, multilateral development banks have focused on policy interventions and policy changes but have not addressed the structural issues affecting developing countries. This is where, again, India has a role to play."

Entrepreneurship—A Way Forward

Ravi believes that the next decade is crucial for India; entrepreneurial spirit and innovative minds of Indians will help the country achieve its economic targets. "We are already looking at a target of $10 trillion for India's GDP by the end of the next decade. By 2047, the target is $30 trillion. This is highly ambitious, but we are confident we will reach it because of the entrepreneurship, innovation, and creative energy that India possesses in its people. However, it is also important to remember that as India becomes a significant player on the global stage, industry must rise to the occasion," said Ravi.

Dammu Ravi shared his views while addressing the opening session of the fifth Global Fintech Fest (GFF) 2024.