Budget 2022 Expectations: As the Budget day nears, fintech companies in India are placing forth their expectations from the government. All eyes are on Nirmala Sitharaman as the Budget Day nears. Sitharaman, the finance minister of India is going to present the Budget before the Parliament on February 1, which is exactly a week from now. It is to be noted that the fintech sector in India has been gaining more relevance in amid the pandemic, emerging as the a driving sector of the country’s economy. With the Budget approaching, the fintech companies are seeking regulations that offer relief and tax sops to MSMEs.
“With the growing smartphone users and internet penetration, FinTech has become an invaluable part of each user’s life. The increasing users of digital financial platforms have brought in strong competition in the financial services industry. It goes without saying that with the access and usage of financial platforms online, the benefit has reached users irrespective of geographies, time and socio-economic boundaries,” said Zafar Imam, CEO of Finshell, on Budget 2022.
The pandemic has further accelerated the need for technology as new-age startups and tech driven companies have brought immense innovation with them, and the trend will pick up in 2022, said Vineet Tyagi, global CTO at Biz2X.
Highlighting the need for game-changing reforms, new policies, and regulations for the fintech sector in Budget 2022, Tyagi said, “With the pandemic providing the boost to digital payments, there is an increased need for revolutionary advancements of end-to-end infrastructural as fragmentary solutions may not sustain in the long run. In 2022, we expect that the government to focus more on the development of digital infrastructure to enhance customer experiences, credit quality, and streamline the growth of financial entities in FY22-23.”
“We hope it’s a fiscally responsible budget since inflation has been rising and that could lead to higher interest rates which would be a headwind for fintechs. Subdued interest rates especially in Government bonds and Fixed deposits will be needed to spur capex, SMEs and fintech lending,” said Amit Damani, founder at Credit Fair.
He said that the government needs to play a fine balancing act between spurring economic growth while consolidating its finances during Union Budget 2022. “As a creator of Alternative Assets we hope the Budget will nudge individuals to diversify their portfolio and enable pension funds to invest in a wider range of fixed income or equity assets that have been created by fintechs,” Damani added.
According to the Reserve bank of India, the fintech sector received investments worth $4.6 billion in 2021. This has almost tripled when compared to the total investments received in 2020. Therefore, a boost for them is expected in Budget 2022, as per industry experts.
Finance Minister Nirmala Sitharaman will present Budget 2022 at 11 am on February 1, as per the government.
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Source: News18