Asian Development Bank to invest in setting up a Fintech hub in India

In a significant effort to aid in the economic development of India, the Finance minister announced the development of a fintech hub at Gujarat International Finance-Tech City facilitated by the Asian Development Bank.

February 3, 2021

ADB to invest an initial funding of about US$ 137.4mn towards skill development, new technologies and resource mobilisation.

Fintech hubs aim to facilitate research, innovation, and development of new-age skills in fintech which will help in creating job opportunities.

Built on 886 acres of land with 62 mn sq. ft. of built-up-area, this will include office spaces, residential apartments, schools, hospitals, etc.

Business segments that could thrive here include offshore banking, insurance, capital markets, IT services, and ITSe/BPO services inter alia.

In the budget 2021-22, FM Nirmala Sitharaman announced the development of a fintech hub at the Gujarat International Finance-tech City (GIFT City), facilitated by the Asian Development Bank. The multilateral agency plans to invest an initial funding of about US$ 137.4mn towards skill development, new technologies and resource mobilisation. To support the growth of such fintech companies, it is essential to create more such hubs. These fintech hubs will facilitate research, innovation, and development of new-age skills in fintech which will help in creating job opportunities and attract quality talent to GIFT City.

 Fintech players feel it is pertinent to create more such hubs for the country’s economic growth and development. This year’s tax announcement in the budget will assist in attracting global fund players, aircraft leasing and financing business, and offshore investment banking sector to set up their base in GIFT International Financial Services City (IFSC). The vision is to make GIFT an emerging global financial and IT services hub, very similar to other global business districts. With advanced and modernised infrastructure, the hub will offer excellent external connectivity. Business segments that could thrive at the special economic zones include offshore banking, capital markets, offshore asset management, offshore insurance, ancillary services, IT services, and ITSe/BPO services.

Fintech and hubs are to be posed as a crucial facilitator for the fast-growing fintech sector. To finance skill development, new technologies, and resource mobilisation, a certain amount of mentoring, training and skill development is required. Built on 886 acres of land with 62 mn sq. ft. of built-up-area, this business district includes office spaces, residential apartments, schools, hospitals, hotels, clubs, retail, and various recreational facilities. 

Recent Articles

India-UAE deepen ties, focus on energy, trade, connectivity

December 16, 2024

India and the United Arab Emirates (UAE) held the 15th …

Read More

Fundraising via QIPs hits record high in 2024

December 16, 2024

Fundraising through Qualified Institutional Placements (QIPs) has reached a historic …

Read More

India and Portugal explore stronger bilateral ties during official visit

December 13, 2024

Union Minister of Commerce and Industry Piyush Goyal and Portugal’s …

Read More