India signs $23 million loan agreement to boost fintech ecosystem at GIFT City

India has signed a $23 million loan agreement with the Asian Development Bank (ADB) to strengthen fintech ecosystem at Gujarat’s GIFT City. 

The agreement is aimed at promoting access to quality fintech education, research, and innovation at the Gujarat International Finance Tec City (GIFT City).

GIFT City is a state-of-the-art commercial hub in Gujarat’s Ahmedabad, envisioned as a smart city and international financial services center. It has been jointly developed by the Centre and the Gujarat government to foster India’s financial services and fintech ecosystem.

The agreement was signed by Juhi Mukherjee, joint secretary in the department of economic affairs at the Union ministry of finance, and Rajesh Vasudevan, officer-in charge of ADB’s India resident mission. 

The project will establish an International Fintech Institute (IFI) to strengthen fintech education, boost start-up success rates, and drive fintech research and innovation.

“The project’s emphasis on market-driven fintech skills programs, creating enabling environment for private sector investment and enhancing collaboration between industry, skills development institutes and development partners will promote holistic growth of fintech ecosystem in India,” Vasudevan said .

The IFI, set to be established in partnership with globally reputed institutes and universities, will offer industry-aligned fintech training programs that meet international standards. 

The institute will strengthen innovation and entrepreneurship by supporting startups, especially women-led, through incubation and acceleration services, the ministry of finance said in a press release. 

It will also collaborate with industry and venture capital funds to support the growth of fintech startups.

These interventions will contribute to enhanced employment opportunities, workforce competitiveness, and productivity in new and green technologies.

The ADB program will support research on innovative solutions and technologies in climate fintech, regulatory technology, social inclusion, and gender equality in finance. The project will help establish a state fintech readiness index and develop new solutions to emerging technologies.