India's digital infra to set it apart in tech-led growth: CEA KV Subramanian

India will be distinct from advanced countries as it is creating digital infrastructure as a public good which can be used as a platform to integrate more people into the formal sector and ensure that benefits reach to all, said Chief Economic Adviser K V Subramanian.

“JAM trinity, overall digital transactions which started from demonetization and has been accelerated by the pandemic positions India singularly well for technology-led growth,” he said at the Global Fintech Fest on Thursday.

He added that the benefits of the technology can be utilized by financial services sector and labour markets, to accelerate bringing people into the formal economy during the decade.


Banks need to invest in creating models using technology for large ticket corporate lending and SME lending, which will result in lower non-performing assets and will full defaults.

He also added that insurance, pension and mutual finance products in the financial sector require more penetration. He said that regulators should encourage competition in these areas which in turn will ensure that prices come down and the products reach the bottom of the pyramid.

He also encourage private sector to set up shop in smaller towns, while monitoring operations remotely, which can lead to job generation and increasing incomes, in turn pushing up consumption.

He further advised the private sector to draw upon Indian tradition, culture ideas of ‘Shubh Labh’ or ethical wealth creation, such that companies engage in capitalism but sustainably, ethically and for the long run.