Bankruptcy law, tax code make India investment hotspot: WEF

NEW DELHI: A combination of policy changes such as bankruptcy law and taxation code and the enabling environment created by the digital public infrastructure has made India an attractive investment destination for the financial technology sector, a senior World Economic Forum (WEF) official said.

Matthew Blake, Head of the Centre for Financial and Monetary Systems at the WEF said India has been one of the best-performing markets in the world and investors have made money here.

Blake also struck a word of caution saying since markets do not move in a purely linear fashion and were prone to “ups and downs”, there was a need to educate investors. “So this idea of being an informed investor, a diversified investor, and having access to educational resources to do that is really fundamental artificial intelligence (AI),” he said.

“I think a combination of different policy choices that have been made make India quite an attractive investment destination. In addition to the digital public infrastructure that creates an enabling environment from a technological standpoint, you also have changes in the bankruptcy law and taxation code adding clarity,” he said.

Blake said a survey of fintech CEOs by the WEF and the Cambridge Centre for Alternative Finance had revealed that 70 per cent of the firms considered AI as a major force and could be deployed for personalisation and customisation of products and services. Blake said for sectoral regulators, AI could be helpful in the context of risk management and there was a need for them to adapt to the rapid changes in technology.

“The sophistication level of the regulatory authorities will also need to increase commensurate with the business sector and talent. Tech, and tech-savvy talent, will be at a premium. And that’s true in the private sector, and that’s true in the public sector,” he said adding in the Asia-Pacific region, the regulatory agencies were generally viewed as being quite skilful.