Niti Aayog Chief Calls for Expansion of Credit-Worthy Indian Population
The CEO of Niti Aayog, BVR Subrahmanyam, emphasized the need for expanding the pool of credit-worthy individuals in India during his address at the Global Fintech Fest 2025. He highlighted the crucial role of technology and fintech in addressing the country’s financial needs as India aims to become a developed nation by 2047. With ambitious goals of achieving a per capita GDP of $18,000 and a total GDP of $30 trillion, Subrahmanyam underscored the importance of financial inclusion and the transformative potential of fintech in bridging existing gaps.
Challenges in Credit Inclusion
Subrahmanyam pointed out that traditional lending practices in India have relied heavily on collateral, which has limited access to credit for many individuals and businesses. He noted that the digitalization of financial services allows for a more nuanced approach to credit assessment, utilizing financial behavior and cash flow data instead of just collateral. He stressed that India’s credit requirements are vast, amounting to trillions of dollars for a $30 trillion economy. Significant gaps in credit access remain, particularly for women, micro, small, and medium enterprises (MSMEs), and the youth. Subrahmanyam cited government initiatives like the Mudra scheme and PM Vishwakarma, which aim to enhance loan accessibility based on repayment history, as steps toward improving credit inclusion.
Empowering Women in the Workforce
Highlighting the importance of women’s participation in the workforce, Subrahmanyam stated that while there has been an increase of 8-10% in the last decade, the overall participation rate remains low. He argued that a 10% increase in women’s workforce participation could contribute an additional 1.5% to India’s GDP growth. To achieve this, he identified several key enablers, including flexible work arrangements, safety measures, mentorship opportunities, and access to credit. He emphasized that technology-driven financial solutions could provide low-cost credit to underserved populations, building on the existing self-help group movement to empower women economically.
India’s Digital Ecosystem and Fintech Innovations
Subrahmanyam praised India’s digital ecosystem, which is anchored in the JAM trinity—Jan Dhan, Aadhaar, and mobile technology. This framework has facilitated the creation of 500 million Jan Dhan accounts, issued 1.3 billion Aadhaar numbers, and enabled over 20 billion UPI transactions annually. He noted that innovations such as the account aggregator framework have strengthened the fintech sector, positioning India to meet its domestic credit needs while also emerging as a global leader in fintech. The CEO expressed optimism that with the right technological advancements, India could set global standards in financial services.
The Future of Fintech and AI Integration
Looking ahead, Subrahmanyam described artificial intelligence as a transformative force capable of re-engineering financial processes, including credit assessment, risk management, and fraud detection. He highlighted that AI could streamline operations and, in some cases, eliminate the need for certain processes altogether. He called for regulators to create sandboxes and activity-based regulations to foster innovation while ensuring safety. Subrahmanyam envisions a comprehensive fintech 2.0 platform by 2047 that caters to diverse individual needs, including transactions, payments, savings, investments, insurance, and pensions. He believes that by leveraging technology effectively, India can achieve its goal of becoming a developed nation and a global leader in fintech.
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