On Monday, while presenting the Budget in Parliament, Union Finance Minister Nirmala Sitharaman said that the government will support the creation of a world-class Fintech hub in the Gujarat International Finance Tec (GIFT) zone. GIFT City is a developed commercial area with 62 mn sq. of land extending over 886 acres. The built-up area contains office spaces, luxury apartments, schools, hospitals, restaurants, clubs, retail, and numerous leisure facilities. A conductive multi-service SEZ (Special Economic Zone) and an exclusive Domestic Region are part of GIFT District. The town is situated on the bank of the Sabarmati river, which links Ahmedabad and Gandhinagar.
India is among the world’s fastest-growing financial technology markets. According to ResearchAndMarkets, India’s fintech industry is forecast to hit Rs 6,207.41 billion by 2025, growing at a compound annual growth rate (CAGR) of 22.7 percent during the 2020-2025 period. Kumar Abhishek, CEO & Founder of ToneTag, believes that a drive to encourage digital payments would strengthen and develop infrastructure across the country, especially in Tier 2 and Tier 3 cities, and fintech companies will have better access to multiple areas and adequate growth incentives.
“The support provided by the government to GIFT City is also a crucial development for the Fintech ecosystem, especially for start-ups. The provision of personalized support and software will not only speed up processes and creation but will also build an ecosystem conducive to ideas and inventions,” he said. Likewise, Seshadri Kulkarni, CEO of DigitSecure, believes that the Fintech hub would help foster engagement and joint learning between regulators, innovators, founders, start-ups, and existing players.