India's Digital Financial Revolution: A New Era Unfolds

India is rapidly advancing in digital financial technology, contributing significantly to its economic growth. The digital economy accounts for about 10% of India's GDP and is projected to rise to 20% by 2026. Innovations in finance, such as digital banking and lending, are optimizing productivity and reducing costs.

India stands at the forefront of a digital revolution, with financial technology accelerating the shift to digital payments, as revealed by Reserve Bank Deputy Governor Michael Debabrata Patra on Wednesday.

Vibrant e-markets are expanding swiftly, and the digital economy is estimated to contribute to a tenth of India's GDP, poised to rise to a fifth by 2026. Speaking at the DEPR Conference on 'Digital Technology, Productivity and Economic Growth in India', Patra highlighted India's unique opportunity to harness its digital public infrastructure, thriving IT sector, and growing youth population, particularly its large AI talent pool.

Patra shared insights from surveys of Indian banks indicating widespread adoption of mobile and internet banking. The digital transformation has seen private banks leading in technological integration, with significant gains observed, such as reduced paper and fuel usage, and decreased customer wait times. He further noted India's role in international initiatives linking open finance frameworks through projects like Project Nexus, emphasizing the Reserve Bank's focus on digital financial inclusion and global cooperation.

(With inputs from agencies.)