Name: Salma Begum & Jeya Prathab Sundar S K
Country: India

Year: 2026
Volume: Volume No: 13, Issue No: 1, Year: 2026
Page Number: 167-180
DOI: https://doi.org/10.5281/zenodo.19495174

ABSTRACT
The paper at hand is concerned with the connection between the Foreign Direct Investment and the development of the FinTech industry in India throughout 2015-2025. The study relies on secondary information and a quantitative research design to examine the significance of foreign investment in some of the pointers to the FinTech development in Indias The study variables are the Foreign Direct Investment inflows, UPI transaction value, GDP growth rate, internet penetration, FinTech funding and number of FinTech startups. These variables have been selected to determine the investment climate as well as overall growth trend of the Indian digital financial ecosystem. The methodology of the research is descriptive statistic, correlation analysis and regression analysis. Descriptive statistics were applied to learn about the general behaviour and distribution of the variables throughout the study period. Correlation analysis was used to analyse the extent and direction of correlation between FDI and selected FinTech growth indicators. Regression analysis was also used to analyze the effect of FDI on FinTech funding in India. The hypothesis that was tested in the study was whether or not Foreign Direct Investment has a significant impact on FinTech funding. The results of the study show that Foreign Direct Investment has a positive link with important measures of FinTech development such as the value of transactions on a UPI, and
the number of FinTech startups. However, the results of the regression indicate that FDI does not exert any statistically significant effect on FinTech funding, as the p-value is 0.228, which is higher than the level of significance. The R-squared value of 0.157 is also indicative that FDI explains a limited part of the variation of FinTech funding. Based on these results, the null hypothesis is accepted and the alternative hypothesis is rejected. The study concludes that while FDI and FinTech growth have a positive movement in the larger Indian context, Foreign Direct Investment is not a significant standalone determinant of FinTech funding during the study period. It appears that the evolution of the FinTech industry in India is influenced by a variety of digital penetration, maturation of the startup environment, and the overall technological and economic environment. The research contributes to the body of literature on intersection between foreign capital and digital financial development in India and future research opportunities based on broader variables and industry-specific data about investment.

Keywords: Foreign Direct Investment, FinTech, India, FinTech Funding, Digital Payments