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Indian government, ADB sign $23 million loan agreement to strengthen fintech ecosystem in India

by Trans World Features | @twfindia 15 Mar 2024, 08:00 am

The Government of India and the Asian Development Bank (ADB) today signed a $23 million loan agreement to enhance access to quality fintech education, research, and innovation at the Gujarat International Finance Tec-City (GIFT-City).

The signatories to the loan agreement for Promoting Research and Innovation through Development of Fintech Institute at GIFT-City Project were Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, for the Government of India, and Rajesh Vasudevan, Officer-in Charge of ADB’s India Resident Mission, for ADB.

GIFT City is an initiative of the Government of India and the State Government of Gujarat to foster India’s financial services and fintech ecosystem.

After signing the loan agreement, Mukherjee said that this 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 programmes, 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,” said Mr. Vasudevan.

The IFI, set to be established in partnership with globally reputed institutes and universities, will offer industry-aligned fintech training programmes that meet international standards. The institute will strengthen innovation and entrepreneurship by supporting startups, especially women-led, through incubation and acceleration services. 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 programme 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.