Enhancing economic growth through digital financial inclusion: An examination of India

Abstract

Financial technology has propelled India's financial sector to international acclaim. The rise of the digital economy has played a crucial role in fueling the nation's ongoing economic growth and prosperity. Using the CRITIC approach, this report thoroughly analyses FinTech and digital economy metrics in all 28 states of India from 2010 to 2022. A thorough analysis of this data uncovers the complex relationships and interactions between FinTech and the digital economy. The findings clearly demonstrate the significant impact of FinTech on India's digital economy. One important result of this impact is the progress of technological advancements, along with a decrease in the financial independence of local governments. In addition, the study reveals a fascinating finding: the influence of FinTech on the growth of the digital economy is enhanced by the existence of local financial regulatory mechanisms. By strengthening regulatory resources, FinTech plays a crucial role in promoting the development of the digital economy, especially in economically advanced regions. This research utilizes a cutting-edge methodology to unravel these intricate phenomena, providing new perspectives on the interaction between FinTech and the digital economy.