India : Promoting Research and Innovation through Development of Fintech Institute at Gujarat International Finance Tec-City Project

Sovereign Project | 56039-001

The project aims to strengthen fintech education, boost start-up success rates, and drive fintech research and innovation in India. It will contribute to enhanced employment opportunities, workforce competitiveness, and productivity in new and green technologies by establishing a climate-resilient and inclusive international fintech institute (IFI). The project intends to (i) design and deliver industry-aligned fintech training programs; (ii) develop a conducive ecosystem for fintech start-up incubation and acceleration, with a focus on promoting opportunities for women; (iii) support applied research and development (R&D) on innovative solutions and technologies; (iv) foster collaboration among academic institutions, governments, incubators, accelerators, and start-ups, aiming to create a collective ecosystem impact for the fintech sector; and (v) incentivize industry partnerships to nurture innovation capacity and enhance industry competitiveness.

Project Details

  • Project Officer
    Gupta, Kanupriya
    Sectors Group
    Request for information
  • Approval Date
    21 February 2024
  • Country/Economy
    India
  • Sector
    • Finance
Project Name Promoting Research and Innovation through Development of Fintech Institute at Gujarat International Finance Tec-City Project
Project Number 56039-001
Country / Economy India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4437-IND: Promoting Research and Innovation through Development of Fintech Institute at GIFT
Ordinary capital resources US$ 23.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Education / Tertiary

Finance / Inclusive finance - Infrastructure finance and investment funds

Information and communication technology / ICT industries and ICT-enabled services - ICT strategy and policy, and capacity development

Gender Effective gender mainstreaming
Description The project aims to strengthen fintech education, boost start-up success rates, and drive fintech research and innovation in India. It will contribute to enhanced employment opportunities, workforce competitiveness, and productivity in new and green technologies by establishing a climate-resilient and inclusive international fintech institute (IFI). The project intends to (i) design and deliver industry-aligned fintech training programs; (ii) develop a conducive ecosystem for fintech start-up incubation and acceleration, with a focus on promoting opportunities for women; (iii) support applied research and development (R&D) on innovative solutions and technologies; (iv) foster collaboration among academic institutions, governments, incubators, accelerators, and start-ups, aiming to create a collective ecosystem impact for the fintech sector; and (v) incentivize industry partnerships to nurture innovation capacity and enhance industry competitiveness.
Project Rationale and Linkage to Country/Regional Strategy

Fintech firms have been instrumental in India's shift toward financial inclusion by offering affordable and customized financial services to the underprivileged population. Fintechs have revolutionized transactions, making them easier, faster, and more secure, while extending their reach to areas that traditional financial institutions could not penetrate. Through innovations such as digital wallets, mobile money, peer-to-peer lending, marketplace lending, and innovative micro insurance products, fintechs have facilitated this expansion. Additionally, these firms contribute to the accessibility of finance for micro, small, and medium-sized enterprises and work toward reducing gender gaps by providing tailored credit products. Further, fintechs play a vital role in addressing climate change through the development of solutions focused on measuring and reducing carbon footprints, including climate-focused digital points of sale, banking services, and carbon markets.

Gujarat International Finance Tec-City (GIFT) is an initiative of the Government of India and the State Government to foster India's financial services and fintech ecosystem. As India's first International Financial Services Centres, GIFT has gained global recognition, comparable to other international financial centers. The State Government offers regulatory relaxations and financial incentives to fintech and financial institutions engaged in cross-border transactions and operating within GIFT. Numerous prominent financial institutions, technology companies, market infrastructure firms, alternative investment funds, and ancillary service providers have established their presence at GIFT. Gujarat is gaining momentum to be one of India's top-performing states in terms of developing the local start-up ecosystem.

The IFI at GIFT will leverage the strengths of GIFT and promote collaboration among key stakeholders, including academic institutions, governments, incubators, accelerators, and start-ups. By fostering cooperation, the institute aims to generate collective benefits and create a significant impact on the fintech industry and GIFT ecosystem. This approach will make the operating environment of the institute more dynamic, inclusive, and collaborative, benefiting all stakeholders. Such capacities in the fintech field are typically scattered across different organizations globally, but the fintech institute at GIFT will be the first of its kind, integrating skilling, entrepreneurship, and research to foster the fintech ecosystem.

Impact

Inclusive and sustainable development of fintech ecosystem (Sustainable vision 2030 for Gujarat)

Project Outcome
Description of Outcome

Industry aligned education, start-up and research and innovation in the fintech sector strengthened

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Climate-resilient and inclusive international fintech institute facility developed

Industry-aligned fintech training programs designed and delivered

Conducive fintech start-up incubation and acceleration ecosystem developed

Applied research and development on innovative solutions and technologies supported

Institutional capacity to manage operating systems and business models developed

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Procurement will be undertaken following the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement Procurement will be undertaken following the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Gupta, Kanupriya
Responsible ADB Department Sectors Group
Responsible ADB Division Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Urban Development and Housing Department
Timetable
Concept Clearance 18 Feb 2023
Fact Finding 10 Apr 2023 to 14 Apr 2023
MRM 28 Jul 2023
Approval 21 Feb 2024
Last Review Mission -
Last PDS Update 21 Feb 2024

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
56039-IND: Promoting Research and Innovation through Development of Fintech Institute at GIFT [CW-01] Invitation for Bids Closed
56039-IND: Promoting Research and Innovation through Development of Fintech Institute at GIFT Advance Notice Active
Project Management Support Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found