RBI Governor Shaktikanta Das Praises Growth of Indian Startups

Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), recently commended the growth of the Indian startup landscape, pointing up the country's world-class digital public infrastructure (DPI) as a key enabler.

The governor discussed how India’s DPI has enormous potential for cross-border payments at the central bank’s RBI@90 High-Level Conference titled Central Banking at Crossroads. 

With over 140,000 recognized startups and over a hundred unicorns, India currently ranks as the world's third most vibrant startup ecosystem.

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Potential of the Indian Startup Ecosystem

Startups in India have raised over $150 billion in funding, showing the immense potential and opportunities in the market. He added the Indian government has taken proactive measures to support and boost the growth of startups in the country.

In September this year, the government launched a digital platform, Bharat Startup Knowledge Access Registry (BHASKAR) to bring together the stakeholders of the startup ecosystem including startups, investors, mentors, service providers, and government bodies for connecting, exchanging ideas, and growing. 

“India’s experience in DPI can be leveraged by other countries to improve and usher in a global digital revolution,” the Governor remarked.

While Indian startups continue to attract significant funding, there have been fluctuations in funding volumes and deal counts.

Though technological advancements such as artificial intelligence (AI) and machine learning (ML) have opened up new avenues for growth, they also pose financial stability risks that should be addressed, Das warned. “The heavy reliance on AI can lead to concentration risks, especially when a small number of tech providers dominate the market. This could amplify systemic risks, as failures or disruptions in these systems may cascade across the entire financial sector,” he said.

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