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FinTechs likely to see rise in funding in coming years, says RBI Das

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India has become the third largest start up ecosystem in the world, and investments in innovation and digital infrastructure must continue in the post pandemic world, said RBI Governor Shaktikanta Das.
The COVID-19 pandemic has pushed the adoption of FinTechs , health tech, and new age firms, and an increased funding in these segments are likely in the coming years, said Reserve Bank of India Governor Shaktikanta Das at the 48th AIMA National Management Convention today.
India has added several unicorns over the last year to become third largest startup ecosystem in the world, and investments in segments, such as innovation and digital infrastructure, will be required even in the post-pandemic world, Das said.
New age firms can tap underpenetrated Indian markets, and the large IT talent pool, to grow further post the pandemic, he said.
The drive towards full fiberisation of the economy has to go hand in hand with the establishment of data centres, and fast broadband internet access can play a critical role in advancing productivity and employment opportunities, he said.
Further, the stronger push to digitalisation and automation can have spillover effects on ease of doing business.
"With greater shift to work from home, technology has gained potential to boost productivity, by saving on travel time, boosting sales on online platforms and accelerating the pace of automation," Das said.
After a 18 month long battle, there are signs that the world is emerging from the shadow of the coronavirus, Das said, adding that this is the right time to plan for an economy that is stronger, more sustainable and financially inclusive.
Since there have been only signs of recovery, Das said the pandemic is still "haunting the global economy" and there are very few parallels of a shock like COVID-19, which left policymakers with no template to navigate through this crisis.
The pandemic caused structural changes in the world economy and impacted the poor more, Das said. "As a result, consumption pattern is changing and companies are resetting their supply chains both globally as well as locally. These changes will have wider ramifications for the economy," he added.
To plug in the gap and boost financial inclusion, India must continue to adopt technology, invest in innovation and digitisation.
India's digital momentum is expected to continue with a strong demand in areas such as cloud computing, customer
troubleshooting, data analytics, work place transformation, supply chain automation, 5G, cyber security capabilities, Das said.
Though recovery has been uneven among different sectors, Das said India's financial system has transformed rapidly to support the need of economy.
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