India's Digital Payment Revolution: A Global Game Changer

In a celebratory ceremony held in the national capital, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman lauded India's leadership in digital payments. Addressing the Digital Payment Award distribution, she asserted that India is leading the globe in real-time digital transactions, a feat that garnered applause from innovators and policymakers.

Minister Sitharaman highlighted that India's fintech industry is not just advancing internally but is setting new standards globally. Citing a World Bank study, she attributed India's swift 80 per cent financial inclusion to its emphasis on Digital Public Infrastructure, an achievement that experts believe would typically take decades.

She elaborated on the global impact, noting that nearly half of the world's real-time digital payment transactions originate from India. The UPI ecosystem, connecting over 35 crore users, became crucial during the COVID-19 pandemic, facilitating seamless transactions amidst lockdowns. The Digital Payments Index has shown remarkable growth, soaring from 100 in 2018 to 465 in 2024.

Further, Sitharaman highlighted Prime Minister Narendra Modi's vision of 'Make in India' and 'Make for the world,' with fintech innovations poised as global public goods. India's UPI is now recognized in seven countries, prompting Indian fintech firms to explore global markets with their successful models.

With a projection for the fintech market to expand beyond $400 billion by 2028-29, Sitharaman urged for collective innovation, inclusion, and inspiration. The ceremony also acknowledged achievements in Direct Benefit Transfers, which saved billions by curbing leakages, and the rapid adoption of the Account Aggregator framework, driving significant advancements in personal finance management.

Closing her speech, Sitharaman called on fintech firms to venture into rural India, emphasizing it as a pivotal ground for growth, innovation, and opportunity. She stressed that the next growth wave lies beyond urban areas, unlocking immense potential in Bharat beyond metros.

(With inputs from agencies.)