Open AccessFinancial Technology (Fin-Tech): Revolutionizing the Indian Agrarian Sector
Author(s) -
Akhilesh Sharma,
Namrata Prakash,
Vishal Sagar,
Abhishek Chauhan,
M S Abhishek,
Shikha Baghel Chauhan
Publication year - 2020
Publication title -
international journal of innovative technology and exploring engineering
Language(s) - English
Resource type - Journals
ISSN - 2278-3075
DOI - 10.35940/ijitee.l1001.10812s319
Subject(s) - financial inclusion , financial services , fintech , business , context (archaeology) , agriculture , poverty , finance , productivity , agricultural economics , economics , economic growth , geography , archaeology
Agriculture is the largest employer of India whichconstitutes 50% of its workforce and also a contributor to 17-18%in its GDP. Still, it is one of the most disorganized and disjointedsector.Somewhere this sector has not been given due attentionand itcan be proven with the fact that the GDP contribution ofthis sector has fallen from 43% to 18% (1970- 2018).Though theIndian Government is digitally driving to provide financialinclusion to more than 145 million households that are nothaving access to banking services but still the farmersaremajorlyusing traditional credit for their basic and main twofactors; Production & Consumption (Distribution). The financialsegment has an important role to make agriculture aprimecontributorto the economic growth of the country and also inreducing poverty. A fast-evolving technological landscape isbringing up new potential to focus&provide credit, risk-sharing,and to explore technology to enhance agricultural productivity.Our paper firstly examines agricultural finance in the Indiancontext and then discusses how financial technology (Fin-Tech)can drive new products in credit and risk markets in India. Weevaluate the role of mobile banking, financial literacy, digitalfinancial services, digital financial technology, and block-chaintechnology. The paper is concluded with a discussion of policytakeaways for Fin-Tech in agriculture to promote agriculturalgrowth, enhance financial inclusion, and improve regionaleconomic integration through agriculture.