Union Budget 2024: Fintech sector hopes for forward-looking policies, job creation, fiscal incentives

Union Budget 2024 expectations: As Finance Minister Nirmala Sitharaman gears up to present the Union Budget 2024 on July 23, the fintech sector hopes upskilling, fiscal incentives and employment generation find mention in her announcements. 

Most of the players in the fintech space are hoping for policies that would accelerate digital transformation, including clearer regulations, and tax exemptions. 

MobiKwik co-founder and CEO Bipin Preet Singh said that with a conducive regulatory framework, enhanced public-private partnerships, and advanced technologies like AI and blockchain, fintech firms can unlock India’s digital financial revolution. “The Union Budget 2024-25 can support this growth with clearer regulations, tax exemptions, and lower capital costs, boosting profitability. A lot needs to be done to bring the underbanked into the financial mainstream, especially in Tier 2 and 3 cities and beyond, where the penetration of fintech products and solutions remains low,” said Singh. 

“Stringent regulations and compliance standards enforcement is necessary in the BFSI and fintech sectors. Regular cybersecurity audits and assessments for financial institutions therefore should be mandated to ensure robust protection,” said Ruchin Kumar, VP - South Asia of Futurex.

Reducing tax and GST compliances for startups, along with tax breaks on initial profits, would catalyse innovation, said Bhuvan Rustagi, co-founder and COO of Per Annum. He said tax reliefs are crucial because startups often prioritise growth over profitability in their early years. Simplifying such compliances would alleviate financial strain, and would enable the companies to reinvest for long-term sustainability and economic contribution. 

Gaurav Jalan, founder & CEO, mPokket said that they expect the government to double down on initiatives relating to the upskilling of youth to improve employability. Increasing jobs should be the core agenda, carried out through a dual approach of easing credit access to small and medium businesses and through incentives on research and investments. A favourable approach to investments in the sector and clarity on the open regulatory discussions are also what FM Sitharaman should look into, said Jalan. 

PaySprint founder and CEO, S Anand, said that the fintech industry hopes for policy directions that will shape its future trajectory. “This budget arrives at a critical juncture, offering a strategic opportunity to reinforce India's position as a global leader in digital innovation and financial technology,” said Anand. 

Fiscal incentives and regulatory frameworks that foster innovation and accelerate digital transformation are the needs of the hour. “As technology continues to redefine financial services, there is a pressing need for policies that support entrepreneurship, attract investments, and promote the adoption of advanced technologies such as blockchain, AI, and digital identity verification,” said Anand, adding that forward-looking regulations would be crucial in enabling fintech firms to operate with certainty and scale their innovations.

“Financial inclusion remains a cornerstone of our collective vision for India's economic future. The budget presents an opportunity to enhance access to digital financial services, particularly in underserved and rural areas,” said Anand. 

Union Budget 2024 has the potential to set a transformative agenda for the fintech sector, paying the way for technology-driven financial services access to all the citizens, he added.