India bank credit hits $2.4t amidst fintech boom

Formal banking reach expanded to 569.3 million Jan Dhan accounts by early November 2025.

India’s mobile wallet industry is on track for expansion, with a projected annual growth rate of 23.9% through to 2027, according to a report by the India Brand Equity Foundation.

This digital surge coincides with a substantial rise in traditional lending, as bank credit reached ~$2.4t by 31 October 2025.

To further increase credit access for the private sector, Reserve Bank of India Deputy Governor T. Rabi Sankar last year launched the Unified Lending Interface (ULI). 

Speaking at a summit in Mumbai, Sankar noted that the ULI is designed to standardise and simplify the lending process in the same way the Unified Payments Interface (UPI) changed digital payments.

The reach of the formal banking system continues to broaden, with 569.3 million Jan Dhan accounts recorded as of early November 2025. 

Additionally, the MUDRA loan scheme has issued 540 million loans totalling ~$427.8b since its inception. 

This credit growth is currently being driven by high demand in the services, real estate, agriculture, and consumer durables sectors.

India’s technology sector is playing a central role in this shift, with more than 3,000 recognised financial technology startups now operating in the country. 

This innovation is supported by a young demographic, with 65% of the population under the age of 35. 

Financial analysts expect India to become the world’s third-largest consumer economy by 2030 due to this demographic trend.

In the manufacturing and export market, India’s smartphone exports rose by 55% year-on-year to reach ~$12.1b during the first five months of the 2025 to 2026 period. 

Notably, in the second quarter of 2025, India overtook China to become the largest exporter of smartphones to the United States.

Long-term projections suggest India will move from its current position as the fifth-largest domestic banking sector to the third-largest by 2050. 

The International Monetary Fund (IMF) has attributed this trajectory to a resilient financial system and a stable domestic policy framework.