The Union budget is a crucial time for India’s fintech industry with immense potential to fuel innovation, enhance financial inclusion and drive economic growth. Stakeholders in the fintech segment feel that in order to remain globally competitive, fintech companies are aiming at support for R&D (Research and Development) in cutting-edge technologies such as Artificial Intelligence, data analytics and blockchain. Besides this they are expecting support with strong public-private partnerships to advance technology enhancement in the regulatory segment.
“Increased investment in R&D initiatives, nurturing a skilled talent pool, and incentivising the adoption of AI across key sectors are paramount to achieving India's ambition of becoming a global AI leader, with the market projected to reach $17 billion by 2027. Credit growth can be further energised through measures that make loans more accessible and affordable for SMEs and MSMEs, strengthen the agricultural value chain, foster fintech-led innovation in credit risk management, and stimulate consumption at the grassroots level,” said Rishabh Goel, Co-founder and CEO, Credgenics.
Regulatory clarity on pivotal issues such as data security and digital payments is crucial for fostering trust and enabling industry scalability. “Policies that encourage the adoption of innovative solutions in areas such as debt settlement will further strengthen the ecosystem and contribute to broader economic stability,” said Goel.
It is a known fact that India's digital economy, is set to hit $1 trillion by 2028 and it has been a catalyst for financial inclusion, empowering millions, through accessible financial solutions. The digitalisation of finance has enhanced access to financial services, with initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Direct Benefit Transfer (DBT) schemes playing pivotal roles in promoting financial inclusion.
“As we look ahead to the Union Budget, we hope for bold measures that enhance digital infrastructure, expand financial accessibility, and further support the aspirations of India's young and ambitious population. As digital lending continues to drive financial inclusion in underserved communities, the focus must shift towards creating a robust ecosystem that balances access, responsibility, and trust,” said Gaurav Jalan, Co-founder and CEO, mPokket.
“This includes prioritising measures that simplify compliance, promote ethical lending practices, and encourage public-private collaboration. Strengthening digital public infrastructure like the Unified Lending Interface (ULI), incentivising financial literacy initiatives, and providing regulatory clarity will be critical to empowering individuals and businesses alike,” he added.
Stakeholders in the fintech segment are also expecting that the union budget by fostering an environment that supports innovation and accessibility, can pave the way for fintech platforms to better serve young and aspiring Indians. Policies that enable aspiration-driven credit, particularly for education, skill development, and personal growth, can have a far-reaching impact on India’s socio-economic landscape.
There are also hopes that the finance ministry introduces supportive policy measures for the fintech and startup sectors in terms of provisioning of training incentives. This will not only help startups to scale up faster but also help to upskill the youth who are the backbone of our economy. There should be training incentives for technical employees hired by start-ups to promote skilled workforce development in the startup sector.
“The government can increase the Kisan Credit Card loan limit from Rs 3 lakh currently. The limit has not been revised for several years even as the costs of farming have increased substantially. This will spur production growth for the agri sector and will support in increasing farming income. Any increase in farmers’ income not just improves their lifestyle but also decreases the risks for the banking system as farmers are able to pay back loans on time,” said Vishal Sharma, Cofounder and CEO, AdvaRisk.
There are also expectations that the budget will bring about progressive measures to enhance financial accessibility and innovation in education. Stakeholders feel that by addressing affordability through interest-free or subsidised schemes, digital financial solutions, and tax incentives for education-related expenses can empower students and institutions alike.
“Policies encouraging partnerships between fintech players and educational institutions will accelerate the adoption of technology-driven financial systems, bridging funding gaps and improving cash flow management. This budget has the potential to champion equitable education access while driving innovation and collaboration in the Edu-Fintech space, contributing to India's economic and social progress,” pointed out Rohit Gajbhiye, Founder and MD of LEO1.
