Niti Aayog CEO Amitabh Kant said cards, ATMs and POS machines will become redundant in India by 2020. This, Kant said while speaking at the the Youth Pravasi Bharatiya Divas in Bengaluru.
“….India is in the midst of huge huge disruption in the world of both financial technology and in terms of social innovation (there is) huge huge innovation and this disruption will enable India to leapfrog…,” he said.
“…and by 2020 my view is that in the next two-and-a-half years, India will make all its debit cards, credit cards, all ATM machines all POS machines totally irrelevant,” Kant told a session on day one of the three-day mega event of Indian diaspora.
He said, “They will all become redundant in India, and India will make this jump because every Indian will be doing his transaction just by using his thumb in thirty seconds….”
Speaking at a session on ‘Startups and innovations which have social impact in India’ at the event, Kant added, “What we are pushing now is digital payment in a very big way and it is a huge disruption with several innovative methods.
“India has created a back end in terms of biometric which will enable India…,” he said, highlighting the recently launched BHIM app and Aadhar enabled payment system initiatives.
Kant pointed out that India is the only country with a billion mobile and billion biometric but he also noted that the country is largely still a cash driven economy.
He said despite the brave attempts of demonetisation and push for digital payment, only 2 to 2.5 per cent of Indians pay taxes.
“It is impossible for India to become a 10 trillion economy like this….two trillion dollar is a formal economy and another one trillion dollar is an informal black economy. It is not possible for India to grow. So you need convert the non-formal economy to a formal economy, thats what the effort is,” he added.
Noting that ability of people living in rural areas to utilise technology to leapfrog is much quicker and faster than literate people living in urban areas, Kant said.
“…so the young people of India must have the hunger, ambition and passion to drive India to innovation, to startups and disrupt India in a manner that it has never seen before,” he added.
Noting that India is growing at about 7.6 per cent per year, Kant said it is an oasis of growth in the midst of a “very very barren economic landscape” across the world and the challenge for the country was to grow at even higher rates of 9 or 10 per cent for a period of three decades or more.
He spoke about how India with its largest young population was a huge opportunity.
“This is the biggest social and economic phenomenon that is taking place across the world, as the population across Europe and America is getting older, the population in India is getting younger…” he added.
He also listed out various reforms measures and initiatives to ease doing business taken up by the government. Kant also stressed on the importance of the startup movement which helps in job creation.
(With inputs from PTI)