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India’s digital economy is expected to grow exponentially to reach $800 billion by 2030 thanks to growing internet penetration and rising incomes, Finance Minister Nirmala Sitharaman said on Friday. Speaking virtually to the IIT Bombay Alumni Association, she said India had more than 6,300 fintechs, with 28% in investment tech, 27% in payments, 16% in lending and 9% in banking infrastructure, while more than 20% are in other areas.

So they are spread across different activities and not focused, she noted.

“At the same time, the digital economy in India is pegged at $85-90 billion in the calendar year 2020 and this will see an exponential increase to $800 billion by 2030. They are expected to reach $800 billion against the backdrop of increased internet penetration, rising incomes and also India’s young population,” she said.

The government has made it easier in terms of smooth and easy access to stock markets, with technologies such as e-KYC and e-Aadhaar helping retail investors enter the market, she said.

The total number of retail investor accounts nearly doubled from about 45 million in March 2016 to 88.2 million as of March 31, 2021, she added.

Citing a report, she said a 10% increase in internet penetration translates to a 3.9% increase in GDP per capita.

Talking about the push towards the digital economy, she said the recent budget announced the creation of 75 digital banking units (DBUs).

“They can operate from one location, but they can serve any number of districts, but we are also targeting 75 districts to cover and I assume the DPU will promote better banking accessibility, affordability, convenience and also better control over their own finances for customers by providing a one-stop digital bank account or digital bank,” she said.

In her budget speech earlier this year, she said, “In recent years, innovations in digital banking, digital payments and fintech have been growing at a rapid pace in the country. The government is continuously encouraging these sectors to ensure that the benefits of digital banking services reach every nook and corner of the country in a consumer-friendly way. »

Taking this agenda forward, and to mark 75 years of independence, she had said, it is proposed to set up 75 digital banking units in 75 districts of the country by regular commercial banks.

Regarding the Unified Payment Interface (UPI), Sitharaman said that 4.5 billion transactions involving transfers of over Rs 8.2 trillion took place in February.

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