Gujarat International Finance Tec-City (GIFT-City)
Source: PIB
GS II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation
Overview
- News in Brief
- About Gujarat International Finance Tec-City (GIFT-City)
- Asian Development Bank (ADB)
Why in the News?
The government of India and ADB sign a $23 million loan agreement to strengthen the fintech ecosystem in India.
News in Brief
- The Government of India and the Asian Development Bank (ADB) 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).
- This project will establish an International Fintech Institute (IFI) to strengthen fintech education, boost start-up success rates, and drive fintech research and innovation.
- These interventions will contribute to enhanced employment opportunities, workforce competitiveness, and productivity in new and green technologies.
- ADB programme will support research on innovative solutions and technologies in climate fintech, regulatory technology, social inclusion, and gender equality in finance
About Gujarat International Finance Tec-City (GIFT-City)
- Gujarat International Finance Tec-City (GIFT City) is a central business district under construction in the Ahmedabad district in Gujarat, India.
- Gujarat International Finance Tec-City (GIFT-City) is an ambitious project envisioned to establish India as a global financial hub, akin to other prominent international financial centres like Dubai, Singapore, and London.
- Situated in the state of Gujarat, GIFT-City is designed to facilitate international financial services and attract both domestic and foreign investment.
Key Facts
- Location: GIFT-City is strategically located between Ahmedabad and Gandhinagar, the capital city of Gujarat, offering easy access to major transportation routes.
- Infrastructure: The city boasts world-class infrastructure, including modern office spaces, residential complexes, commercial establishments, and state-of-the-art amenities.
- Regulatory Framework: GIFT-City operates under a robust regulatory framework, providing a conducive environment for financial institutions, banks, insurance companies, and other financial entities to conduct their operations.
- Special Economic Zone (SEZ) Status: It has been granted Special Economic Zone (SEZ) status, offering tax incentives, duty exemptions, and other benefits to businesses operating within its premises.
- International Connectivity: GIFT-City aims to enhance India’s connectivity with global financial markets by providing seamless access to international financial exchanges and networks.
- Financial Services: The city facilitates a wide range of financial services, including banking, insurance, asset management, capital markets, fintech, and other financial activities.
- Investment Opportunities: GIFT-City presents lucrative investment opportunities for domestic and foreign investors seeking to tap into India’s growing financial sector.
Importance and Facilities
- Infrastructure Development: GIFT-City’s modern infrastructure is exemplified by its iconic skyline, featuring high-rise buildings, cutting-edge technology, and world-class amenities, attracting leading financial institutions and multinational corporations to establish their presence in the city.
- Regulatory Environment: The robust regulatory framework of GIFT-City, modelled on international standards, ensures transparency, efficiency, and compliance, instilling confidence among investors and fostering trust in the financial ecosystem.
- International Collaboration: GIFT-City collaborates with global financial centres, regulatory bodies, and industry associations to promote cross-border cooperation, knowledge exchange, and best practices, positioning itself as a preferred destination for international business.
Asian Development Bank (ADB)
- It is headquartered in Manila, Philippines.
- ADB now has 67 members of which 48 are from within Asia and the Pacific while the remaining 19 are from outside.
- The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific and non-regional developed countries.
- ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
- ADB operations are designed to support the three complementary agendas of inclusive economic growth, environmentally sustainable growth, and regional integration.
- The ADB was modelled closely on the World Bank and has a similar weighted voting system where votes are distributed in proportion to members’ capital subscriptions.
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