Govt & ADB Sign $23 Mn Loan Agreement To Bolster Fintech Ecosystem In India

The government, in collaboration with the Asian Development Bank (ADB), has signed a loan agreement worth $23 million aimed at enhancing access to top-notch fintech education, research and innovation at the Gujarat International Finance Tec-City (GIFT City). GIFT City, a joint initiative of the Centre and the Gujarat government, is designed to nurture India's financial services and fintech ecosystem, as highlighted by the finance ministry in a recent statement.

Under the terms of the loan agreement, a fintech institute will be established within GIFT City. The agreement was formalised by Finance Ministry Joint Secretary Juhi Mukherjee and Rajesh Vasudevan, Officer-in-Charge of ADB's India Resident Mission.

Following the signing of the agreement, Mukherjee emphasised that the project will lead to the establishment of the International Fintech Institute (IFI), which will play a pivotal role in bolstering fintech education, enhancing startup success rates and fostering fintech research and innovation.

Vasudevan echoed these sentiments, stating, "The project's focus on market-driven fintech skills programs, facilitating an enabling environment for private sector investment, and fostering collaboration between industry, skills development institutes, and development partners will contribute to the comprehensive growth of the fintech ecosystem in India."

The IFI, established in partnership with globally renowned institutes and universities, will offer fintech training programs aligned with industry standards on an international level. Additionally, the institute will support innovation and entrepreneurship by providing incubation and acceleration services to startups, with a special focus on those led by women. Furthermore, collaborations with industry stakeholders and venture capital funds will be facilitated to support the growth of fintech startups.

These initiatives are expected to create more job opportunities, enhance workforce competitiveness and increase productivity in emerging and environmentally friendly technologies.