Union Budget 2023: Fintech Startups Take Center Stage
The Union Budget 2023, presented by the Finance Minister on February 1, 2023, has put a strong emphasis on the growth of fintech startups in India. The government has recognized the role that fintech startups play in driving digital financial inclusion and boosting economic growth and has allocated a significant portion of the budget to support their growth and development.
Will the budget address the challenges faced by startups in accessing capital and credit?
It’s great to see how Budget has come up today. This budget has emphasized on few of startup relevant factors as below:
- Simplifying KYC process: The KYC process will be simplified and more personalized instead of a “one size fits all” approach.
- A new solution for updating the identity and address of citizens will be established using DigiLocker and Aadhaar framework.
- DigiLocker documents scope being expanded to enable Fintech services.
- Entity-based DigiLocker service will be launched for MSMEs, large businesses and charitable trusts.
- National Data Governance Policy will be set up giving access to anonymized data
- Make AI in India and Make AI work for India will drive AI Adoption in India
- Pradhan Mantri Kaushal Vikas Yojana 4.0 is to be launched with courses on Industry 4.0 like coding, AI, robotics, mechatronics, IoT, 3D printing, drones and soft-skills.
- 5G services: 100 labs to be set up in engineering institutions to develop applications like smart classrooms, precision farming, smart transport system and health care applications.
In conclusion, the Union Budget 2023 has put fintech startups in India front and center, with a range of measures aimed at supporting their growth and development. With the government’s support, the fintech sector in India is poised for rapid growth in the coming years, and will play a key role in driving digital financial inclusion and boosting economic growth.