India’s Digital Economy to See Exponential Growth to $800 Billion by 2030

The finance minister of India, Nirmala Sitaraman announced that the digital economy of the country is expected to witness exponential growth to $800 billion by 2030 on the back of rising internet penetration and increasing income.

While addressing the IIT Bombay Alumni Association, she said that India has more than 6,300 fintech in India, of which 28% are investment technology, 27% into payments, 16% into lending, 9% are banking infrastructure and 20% others. 

She further said that the government has made it easier in terms of smooth and easy access to the stock markets with technology such as e-KYC and e-Aadhar helping the retail investors come into the market. 

The total number of investor accounts has almost doubled from 45 million as of March 2016 to 88.2 million on March 31 2021. She also quoted a report by saying that a 10% rise in internet penetration results in an increase of 3.9% in GDP per capita.

In a budget speech earlier this year, she said: "In recent years, digital banking, digital payments and fintech innovation have grown rapidly in the country. The government has taken these sectors to ensure that the benefits of digital banking are consumer-friendly to every corner of the country."