With the Union Budget 2025 approaching, widespread speculation is building across industries about what measures it will introduce. The upcoming budget is widely expected to prioritise economic growth, targeted reforms, and investment in strategic sectors to support long-term development and financial inclusion. Many industries, including fintech, are hopeful for tax reliefs or policy incentives from Finance Minister Nirmala Sitharaman.
Experts across sectors anticipate notable announcements in this budget, particularly for fintech. As one of the fastest-growing segments of the Indian economy, fintech has consistently driven innovation in payments, lending and financial services. Goldman Sachs Research has highlighted India among the top growth opportunities globally, and stakeholders expect the Interim Budget to further boost fintech adoption and investment.
Below we summarise why fintech is likely to receive attention in the Union Budget 2025–26 and outline the sector’s key expectations.
Why Fintech May Get a Boost in Budget 2025
Several indicators suggest fintech could benefit from focused budgetary support in 2025–26. These reflect past policy trends, the sector’s role in digital payments and public welfare, and ongoing efforts to expand financial access.
Trends from Previous Budgets
Recent budgets have repeatedly encouraged digital infrastructure and eased regulations to support digital transactions. For example, earlier measures promoted the use of DigiLocker for documentation, helping both consumers and financial service providers streamline processes. The government also announced plans to set up labs in engineering institutes to develop 5G applications, creating opportunities for fintech firms to explore new services and technologies. Given this background, the sector expects continued policy support in the upcoming budget.
Key Enabler of Digital Payments
The government previously allocated significant funds to build digital payments infrastructure, including substantial support in the 2021 and 2022 Budgets. Although interim allocations were reduced in 2024, digital payments have grown rapidly: transaction volume increased from about 2,071 crore transactions in 2017–18 to roughly 18,737 crore transactions in 2023–24, reflecting a compound annual growth rate around 44% over that period. This sustained growth and earlier budgetary allocations for UPI infrastructure suggest the sector could again receive investment to strengthen payment rails and related systems.
Enables Direct Benefit Transfers (DBTs)
Direct Benefit Transfers (DBTs) route subsidies and welfare payments directly to beneficiaries’ Aadhaar-linked bank accounts, reducing leakage and improving efficiency. Fintech solutions are instrumental in extending DBT reach into underserved and rural areas. Enhanced support for fintech companies could widen access to financial services in Tier 2 and Tier 3 cities and rural regions, increasing the effectiveness of DBT and other government programmes.
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What Fintech Expects From Budget 2025
India’s fintech ecosystem has expanded rapidly, with a large share of startups founded between 2016 and 2021 operating in this space. Expectations for the budget reflect a desire to sustain and accelerate that momentum through targeted policy and fiscal measures.
Ashish Goyal, Co‑Founder and CFO of Fibe, outlined several priorities for the upcoming Union Budget. He emphasised the importance of policies that nurture entrepreneurship and strengthen the startup ecosystem, noting the government’s vital role as a catalyst for innovation and growth.
Goyal also highlighted the need for regulatory measures that balance consumer protection with market development. He expects continued action to curb illegal or unauthorised lending practices and calls for expanded digital infrastructure to reduce the cost of delivering financial services.
Specific initiatives Goyal mentioned include support for open networks—such as ONDC (Open Network for Digital Commerce) and OCEN (Open Credit Enablement Network)—to incentivise investment in technology and R&D. He also suggested the introduction of a uniform KYC framework across financial services to simplify onboarding, reduce duplication, and promote financial inclusion while maintaining robust safeguards.
Fintech leaders similarly expect the budget to preserve momentum on digital payments, deepen financial inclusion, and ease regulatory friction where appropriate. Key hopes include incentives for digital adoption, improved access to credit for MSMEs, and measures that encourage responsible lending and borrowing practices.
Taken together, these proposals and expectations aim to ensure fintech continues to act as a growth catalyst for India, supporting broader economic expansion, improving service delivery, and extending financial access across the country.