Union Finance Minister, Nirmala Sitharaman, in Budget 2021 announced setting up a high-class fintech hub in Gujarat International Finance Tec (GIFT) city.
Considering India has been a growing market for the fintech industry with CAGR of 22.7% during the 2020-2025 period. It is also expected to reach more than ₹6 billion by 2025; this move will push the country’s fintech activity and drive innovations.
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To facilitate this, an MoU has been signed between startup incubator International Centre for Technology and Entrepreneurship (iCreate) and GIFT SEZ, to create an enabling platform for collaboration in the field of fintech, stated Gift City spokesperson to the media.
Spanning across 886 acres of land with 62 mn sq. ft. of built-up area, the Gift City includes office spaces, residences, schools, hospital, hotels, clubs, retail and various recreational facilities, along with a conducive multi-service special economic zone and an exclusive domestic area. The Gift City has also been termed as a planned business district of the country.
According to the official website, Gift City is equipped with the latest technology and advanced infrastructure service delivery that offers international working and living standards. Alongside it also embraces India’s first International Financial Services Centre (IFSC).
Agreeing to this, Anupam Jalote, CEO of iCreate, stated to the media that considering fintech is one of the largest verticals within the startup ecosystem. “Proximity to regulators, banks, insurance companies and other financial institutions are key to a successful fintech ecosystem, and GIFT City provides just the right environment for this,” said Jalote.
The financial hub that will be established at Gift City will also help create around 1.5 lakh jobs for the youth. Further, it will also push the use of artificial intelligence, machine learning, etc., in governance and drive tech-enabled tax functioning. The vision is to create an exceptional finance and IT zone for India to provide services to India and the entire world.
Besides this, the budget also announced credit access of ₹20,000 crores, via a bill, for boosting small businesses, MSMEs as well as companies working in areas of focus such as manufacturing and infrastructure. The budget has also announced a ₹1500 crore scheme to accelerate Digital payments in the country. “To give a further boost to digital transactions, I earmark Rs 1,500 crore for a proposed scheme that will provide financial incentive to promote digital modes of payment,” said Sitharaman during Budget 2021.