India’s financial technology (fintech) sector is thriving with 3,085 recognized startups operating under the government’s Startup India initiative. These startups are supported by the Department for Promotion of Industry and Internal Trade and have received various incentives to foster their growth. Since the launch of Startup India in 2016, a total of 98,119 entities have been recognized as startups by the government. To be eligible for recognition, startups must meet specific criteria such as date of incorporation, revenue and profit benchmarks, and number of employees.

Recognized startups are entitled to fiscal and non-fiscal incentives provided by the government. The International Financial Services Centres Authority (IFSCA) has implemented measures to support the fintech sector, including the introduction of a dedicated ‘Fin-Tech Entity Framework’ designed to address the needs of fintechs and techfins. In addition, the IFSCA has introduced an incentive scheme tailored to fintechs and startups, which includes various grants such as startup grants, sandbox grants, proof-of-concept grants, green fintech grants, listing grants, and accelerator grants.

To attract investment in the fintech sector, the Indian government has implemented the Pradhan Mantri Jan Dhan Yojana (PMJDY), a program that aims to enhance financial inclusion by facilitating access to bank accounts and financial services. This initiative has provided fintech startups with opportunities to develop technological solutions to cater to India’s large consumer base.

The synergy between the Jan Dhan Yojana, Aadhar, and Mobile (JAM trinity) along with the Unified Payments Interface has played a significant role in promoting technical inclusivity, transparency, integrity, and timely delivery of financial benefits and services to the public. The government’s Startup India initiative, launched in 2016, aims to create a robust ecosystem for innovation and startups while encouraging private investments in the country’s startup ecosystem. The growth of India’s fintech sector demonstrates the government’s commitment to promoting innovation and entrepreneurship in the country.