India Emerges as a Growth Hub for Foreign Banks and FinTechs: FM Sitharaman

By siliconindia  |  Wednesday, 09 April 2025, 09:51:34 AM IST

India Emerges as a Growth Hub for Foreign Banks and FinTechs: FM Sitharaman
India is a good growth prospect for foreign banks and the government is also actively promoting foreign investment in the banking sector, Union Finance Minister Nirmala Sitharaman has emphasized. Addressing the India-UK Investor Roundtable conference in London with around 60 investors, across various pension funds, insurance corporations, banks and other financial institutions in London, the Union Minister outlined government priorities for enabling consistent economic growth and investment opportunities with the policy environment that is characterizing New India.
She referred to the efforts being made by the government to make process and governance reforms to ease compliance burden and streamline regulation in order to generate an enabling business and investment climate, according to a Finance Ministry statement on Wednesday.
With increasing middle class, and stable and strong policy regime, the Union Finance Minister has said that India will be the sixth largest Insurance market in 2032 with growth at an estimated 7.1 percent CAGR over 2024-2028 one of the fastest growing insurance market from the G20 economies.
FM Sitharaman informed the investors that Indian securities market will be among the first of the large markets to implement 'T+1 settlement' as early as in 2023 and market capitalisation of India stands at $4.6 trillion (3.7 trillion GBP), occupying fourth position among the world economies.
The Union Finance Minister spoke extensively about India's first International Financial Services Centre GIFT-IFSC an offshore centre which is blessed with an enabling environment with substantial tax relief, quality manpower, foreign currency transactions, and strategic location.
She also updated the investors that as of March 2025, over 800 entities in banks, capital markets, insurance, FinTech, aircraft leasing, ship leasing, bullion exchange, and others have been registered with the International Financial Services Centres Authority (IFSCA).
Highlighting India's digital economy as one of the significant contributors to its economic growth, at 11.74 percent of the GDP in 2022-23, Finance Minister informed the attendees that India stands third in the world in terms of the number of domestic unicorns.
She further added that India is home to world-class FinTech ecosystem powered by the huge number of technology-enabled population, pro-business government policies, and entrepreneurial startup ecosystem.
The sector has witnessed the phenomenal growth of FinTechs over the past 5 years as is evident from an amazing 87 percent adoption rate as against a global average of 64 percent and 15 percent of world FinTech funding.
The Union Minister also spoke at a fireside chat on the 'Opportunities and challenges for India's quest to become a developed economy by 2047', at the India House in London.

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