Indian fintech's success an example of popular support for reforms: Modi

India got record amount of foreign investments last year during the coronavirus pandemic, says Prime Minister in Hyderabad.

Indian fintech comprises 40 per cent of the world’s digital transactions, said Prime Minister Narendra Modi on Thursday as he cited the industry as an example of people supporting economic reforms done honestly and will power.

He said that even during global supply disruptions due to the coronavirus and the war in Ukraine, India became the biggest growth centre in the world by getting record foreign direct investment (FDI).

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“After 2014, we are seeing political will power and continuous reforms. We have shown that with honesty and willpower, the reform process is taken ahead, people’s support will come,” Modi said, taking fintech as an example.

"In a nation where banking was considered as a privilege, fintech is changing the lives of the common man. Where once to create trust over banks you had to take so much effort, there now, the world's 40 per cent digital transaction is happening.”

According to a recent report by payment solutions provider ACI Worldwide, India made 48.6 billion real-time payments through 2021, much ahead of China which is number two. The rise was cited due to an increase in unified payments interface (UPI) and QR code-based merchant payments, along with a boost in cashless payments.

Addressing a meeting by the Indian School of Business in Hyderabad, Modi spoke about India’s success in healthcare during the pandemic. He said that the country’s health sector was considered unable to respond to any big challenge. “But the effects of reforms in the health sector we realised during the biggest pandemic in the last 100 years,” he added, citing several examples including vaccination for Covid-19. India so far supplied 190 crore doses of vaccines domestically and sold its vaccines to over 100 countries, he said.

Other examples of the health success stories that he cited included the rise in PPE manufacturing kit makers from near zero when the pandemic hit to creation of a network of over 1,100 new manufacturers within a short span of time. Modi said that the number of medical colleges also increased from 380 before 2014 to over 600 now.

“During coronavirus, the world saw the potential of India. Global supply chain disruption happened during that time and then the war also increased it. Even in between that India is a big center of growth,” Modi said, stating that the country got the highest FDI last year. According to the ministry of commerce and industry, India reported its highest FDI inflow to the tune of $83.57 billion for the financial year 2021-2022. This was $1.60 billion higher than the previous financial year.

“Today, the world is understanding that India means business,” Modi said, adding that this is not just by the efforts of the government but also by the efforts of start-ups, traditional business and manufacturing.