FinTech: Asian Development Bank To Invest $137M In India’s Fintech Hub At GIFT City
GIFT City (pictured above), at Gandhinagar, Gujarat, will be a special economic zone for financial services entities.
Asian Development Bank is in discussions with authorities of the GIFT City, Gujarat, to invest Rs 1,000 Crores (approximately $137 million) in a new fintech hub at the city’s International Financial Services Centre (IFSC). (MEDIANAMA)
The amount, an initial investment, would equip fintech firms with skill development tools, new technology, and resource mobilization.
The GIFT City is a special economic zone for financial services entities. Its mission is to specifically finance skill development, new technologies, and resource mobilization. GIFT is an acronym for the Gujarat International Finance Tec-City.
It will be built on 886 acres of land with 62 mn sq. ft. of built-up area. That includes office spaces, residential apartments, schools, hospitals, hotels, clubs, retail, and various recreational facilities.
The vision is to make GIFT an emerging global financial and IT services hub. The first of its kind in India, it will be at or above par with globally benchmarked business districts.
It will contain state-of-the-art infrastructure, encompassing all basic urban infrastructure elements along with excellent external connectivity.
Companies from Financial Services, Technology, and all other services sectors are potential occupants within the city.
Business segments that could thrive at the special economic zone include offshore banking, capital markets, offshore asset management, offshore insurance, ancillary services, IT services, and ITeS/BPO services.
Finance Minister Nirmala Sitharaman
Indian Finance Minister Nirmala Sitharaman announced in the country’s Union Budget for 2021-22 that a fintech hub would be set up at the GIFT IFSC.
She also announced tax breaks for foreign funds that relocated to the GIFT IFSC.
“The tax announcement would help in attracting global players in the Fund business, aircraft leasing & financing business, and offshore investment banking sector to set up their base in GIFT IFSC…The Fintech hub will facilitate research, innovation, and development of new-age skills in fintech which will help in creating new job opportunities and attract quality talent to GIFT City,” said Tapan Ray, managing director and group chief executive officer, GIFT City.
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