In India, fintech has emerged as a powerful catalyst for financial inclusion. “Fintech has drastically reduced the turnaround time for financial services, simplified procedures and led to the emergence of very efficient and different business models. Along with that, fintech has also helped in reducing the cost of financial intermediaries, enabled data aggregation and reduced credit and insurance risk. The financial inclusion and e-governance brought about by fintech in India have truly been a game changer in transforming the socio-economic growth trajectory of the country,” said K Rajaraman, Chairperson, International Financial Services Centres Authority (IFSCA) as he introduced India as the favoured destination for global fintech innovation in his keynote at the Global Fintech Fest 2023 (GFF 2023) on Wednesday.
Delivering a talk on ‘Transforming India’s International Financial Services Landscape through Fintech Innovation and Responsible Global Cooperation’ Rajaraman observed, “India is at a very interesting cusp of development,” and continued, “We are a vibrant democracy that focuses on the inclusion of all kind – social, demographic and financial. With a competent manpower that can serve the rest of the world, India has enabled biometric identities for nearly 1.4 billion people, connected nearly 1.2 billion of its citizens via 4G and now 5G, and provided over 500 million bank accounts to unbanked citizens. India is the third largest fintech ecosystem after the USA and China. The sector boasts 23 unicorns as of Q1 of 2023 and over 660 startups that have received funding of nearly 26 million dollars from 2014 to date. It also has a Fintech adoption rate of approximately 87%, surpassing several advanced economies.”
Established as a financial services hub to attract offshore international financial businesses to India, IFSCA’s goal is to foster a conducive business environment and world-class regulatory framework. “We offer a competitive tax structure, including 10 years of corporate tax exemption out of 15, along with exemptions from dividend distribution tax, security transactions tax, commodity transaction tax, and more. In recent years, IFSCA has facilitated startup access and encouraged innovative financial product development, implementing over 30 streamlined global-standard regulations. ” Rajaraman added.