The Prime Minister said, “At the time of Vanijya Bhawan’s foundation stone laying, India was recognizing 8,000 startups every year. However, the country now recognizes over 15,000 startups every year.” He said more than 45 Lakh small entrepreneurs are currently registered on GeM He said earlier that India’s digital economy is on track to reach $1 billion by 2025
Currently, India has 2,300 registered fintech startups, up from 500 startups in 2018, Prime Minister Narendra Modi said today. Speaking at the inauguration of Vanijya Bhawan, the Prime Minister said: At the time of laying the foundation stone of Vanijya Bhawan, India was recognizing 8,000 startups every year. However, the country now recognizes more than 15,000 startups per year.
Talking about the GeM online public procurement platform, the Prime Minister said that GeM used to receive orders worth INR 9,000 Cr but now more than INR 2.25 Lakh Cr is placed on the platform. He added that more than 45 Lakh small entrepreneurs are currently registered on the GeM portal. Previously the Prime Minister said that India’s digital economy is poised to reach $1 billion by 2025. He also informed that the country expects a growth rate of 7.5% this year, thus making India the fastest growing major economy in the world.
In recent years, India’s digital economy has grown exponentially due to cheaper internet mobile plans, affordable smartphones, and growing millennial interest in entertainment as well as social media channels. The country’s consumer digital economy, which was estimated at $85-90 billion in 2020, will reach 800 billion dollars by 2030 at a CAGR of 25%.
Bringing attention to India’s fintech sector, which is poised to become a $1.3 billion market by 2025, is currently affected by RBI guidelines that have prevented non-banking players from fintech PPI to load credits to native consumers. In a recent notification, the RBI said, The PPI-master department does not allow the loading of PPI from credit lines. Such a practice, if followed, must be stopped immediately. Failure to comply in this regard may result in criminal prosecution under the provisions contained in the Payment and Settlement Systems Act 2007.
This has been a blow to fintech players, especially digital lending startups, whose revenue comes mostly from lines of credit.