Key highlights
- India’s fintech market is projected to grow from ~$110 billion to over $400 billion by FY 2028–29.
- Finance Minister urges fearless innovation, rural expansion, and global outreach to retain digital payments leadership.
India's fintech market is thriving and expected to reach $400 billion in the next three years, said Union Finance Minister Nirmala Sitharaman, urging the industry to continue "fearlessly" innovating people-centric new solutions to maintain the country's leadership position in this area.
India accounts for nearly half of all real-time digital transactions worldwide, she stated at the Digital Payments Awards 2025 ceremony hosted by the Department of Financial Services (DFS), a division of the Finance Ministry. According to industry estimates, the country's fintech market is worth approximately $110 billion, with an 87% adoption rate, which is significantly higher than the global average of 67%.
"The fintech revolution in India will continue to flourish. Our fintech market is expected to grow to more than $400 billion by 2028-29, representing an annual growth rate of over 30%. The scale of opportunity is enormous. I firmly believe that the best chapters are yet to come. Let's work together to innovate, include, and inspire. "Innovate new solutions fearlessly, include every citizen in your vision, and inspire the world with what India can accomplish," the finance minister stated.
Many other countries can only dream of the speed with which innovation is happening in India, she said."Several advanced countries are nowhere near the level of momentum that our fintech companies have achieved, not only in terms of progress in their respective fields, but also in the creation of entirely new paradigms. This is something very unique to the Indian fintech sector," she explained.
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She stated that the scale of adoption in India is also phenomenal, and it is recognized globally. Citing Prime Minister Narendra Modi's "Make in India, Make for the World" initiative, she stated, "In this context, Indian fintech innovations have the potential to become global public goods that can benefit other emerging and developed economies."This will open up new markets for our businesses."
"Our players must strive to export our successful models and enter global markets. "We have the talent, market scale, and proven solutions," she stated. India's international merchant payments via the Unified Payment Interface (UPI) are now accepted at select merchant locations in seven countries: Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the United Arab Emirates.
According to a World Bank report, India achieved 80% financial inclusion in just six years thanks to the Digital Public Infrastructure (DPI). "Some observers who have gone through this report have said that this feat would have otherwise taken nearly 50 years," she added.
During the pandemic, payment apps became lifelines, allowing for contactless payments and doorstep banking when mobility was limited, she explained. According to the Reserve Bank of India (RBI), India's Digital Payments Index, which measures overall digital payment usage, has quadrupled over the last five years, from 100 in 2018 to 465 in 2024, she added. India now accounts for more than 48.5% of all real-time digital payment transactions globally. The UPI ecosystem includes more than 35 crore users.
