(Bloomberg) -- Sign up for the India Edition newsletter by Menaka Doshi – an insider's guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise, delivered weekly.
India is seeking “sustainable” growth to achieve the country’s economic goals, Prime Minister Narendra Modi said Friday, ahead of data that’s likely to show some moderation in activity in Asia’s third-largest economy.
Modi highlighted India’s gains in financial technology and green finance as examples of the country’s focus on sustainability. He was speaking at the Global Fintech Fest in Mumbai, alongside central bank Governor Shaktikanta Das.
“Today, sustainable economic growth is India’s priority. We are building strong, transparent and efficient systems,” Modi said. “We are strengthening our financial markets with advanced technology and regulatory framework. We are supporting sustainable goals with green finance.”
The prime minister’s comments come against the backdrop of more moderate growth expectations following the 8%-plus blowout figures reported in the fiscal year that ended in March. Goldman Sachs Group Inc. and others have already downgraded their projections for India for this year and next, although the economy is still expected to outperform its peers with more than 6% expansion.
The bulk of Modi’s speech was focused on India’s fintech industry, which he said has attracted more than $31 billion in investment in the past decade. India is a global leader in the payments space, he said, adding that “nearly half of world’s digital transactions happen in India.”
Speaking at the same conference on Wednesday, Das said digital financial inclusion is a priority for the Reserve Bank of India. The central bank aims to build a digital public infrastructure in the country, he said, which would encompass frameworks like digital identity, universal fast retail payments and targeted payment solutions like platform for bill payments.
With the rapid growth in digital payments, Modi also warned regulators to keep a lid on cyber-fraud and improve consumer literacy around the subject.
Other highlights from the prime minister’s speech:
- India’s digital e-rupee is as useful for the world as it is for India
- India has called for a global framework for ethical use of artificial intelligence during the last Group of 20 summit
- The government is serious about supporting the fintech sector and has removed angel tax in the budget to help support startups and digital entrepreneurs
©2024 Bloomberg L.P.
