He claimed that economic momentum and animal spirits, on the other hand, are “unmistakable”.
“India’s growth rates have fallen short of forecasts made in January to around 7 per cent for the current fiscal year,” said Nagheswaran, speaking at the Global Fintech Fest here.
He stressed that the consequences of the COVID pandemic and the ongoing war in Europe caused by the Russian invasion of Ukraine are still being felt around the world and are detrimental to economic growth.
According to the economic study released in January of this year, growth in fiscal year 23 will be between 8% and 8.5%. The Reserve Bank of India (RBI) expected GDP to rise by 7.2%, although other analysts believe the forecast may be revised down soon.
According to Nageswaran, India is poised to continue its 7% annual growth rate for the rest of the decade.
Ngeeswaran said the government is shifting from financial inclusion to financial empowerment, and the focus in the 10 years leading up to 2030 has been on helping people access financial services such as credit and insurance using the basis of accounts opened earlier, in his remarks at the Fintech event.
He said that in order to help the expatriates, the government is striving to build interoperability between the payment systems of Singapore and the UAE in order to reduce remittance fees to almost zero.
He claimed that the UPI “simulates” the central bank digital currency that India is moving towards introducing soon.
He stated that with regard to credit, “we are moving from a system based on collateral to a system in which cash flows come into their own.”
He added that cash flow-based lending apps should be careful not to mistreat borrowers, especially those with low levels of financial awareness.
According to Nageswaran, the total cash flow based financing potential in the coming year is expected to be INR 3 crore.
He added that the data protection law is necessary.
According to him, companies should view profit as a means of developing the system rather than manipulating it.
He noted that India had now developed a range of solutions after being a consumer for many years and that the country still needed to move forward with regard to IP issues.