Digital credit to propel Indian economy by 1-2%: Ashwini Vaishnaw

Digital credit: In an online video discussion, Union Minister Ashwini Vaishnaw expressed that digital credit in India is set to surpass digital payment systems in significance, projecting a potential addition of 1-2 per cent to the country's economic growth.

The video, available on YouTube, features Vaishnaw engaging with the Google leadership team, including Rick Osterloh, Google's Senior Vice President for Devices and Services.

During the conversation, Vaishnaw underlined the importance of the Svanidhi Scheme and highlighted Prime Minister Narendra Modi's dedication to uplifting the socio-economic status of the underprivileged.

Vaishnaw stated, "Digital credit is going to be bigger than digital payments because there is so much entrepreneurial energy out there in the country, and the access to credit is what was holding it back. Once you have easy access to credit at a competitive rate, I can tell you this country will experience an additional 1-2 percentage points of growth because of digital credits."

GPay’s reliable credit to retail customers

This conversation took place on the sidelines of the Google for India event, during which Osterloh announced that the company's premium smartphone Pixel series would be manufactured in India.

At the same event, Google disclosed that GPay would facilitate the provision of reliable and responsible formal credit to individuals and small businesses by offering customised credit products from some of India's leading lenders on the platform.

In a separate discussion with the media during the event, Minister Vaishnaw noted that digital credit would intensify competition among lenders in the market, thereby leading to a reduction in lending rates across the country.

(With PTI inputs)