Boosting India’s Fintech Landscape: Government and ADB Partner on US $23 Million Loan Pact

Fintech? Have you heard it before? Yes, definitely. This is the reason for India getting into a better space in terms of economic evolution. Companies like Paytm, Google, Phonepe, Bharatpe, and Mobikwik are responsible for this upside.

Fintech is the application of technology in the financial services industry, which got an impetus due to the penetration of smartphones and the government’s push towards digitalisation. In 2021, this industry was fueled by investments of over US $8 billion, which had built more than 2100 fintech companies all over India. These startups use artificial intelligence, blockchain, and big data analytics to facilitate services like mobile wallets, payment gateway, peer-to-peer lending, and robo-advisory services which provide better transparency, accessibility, and security. Through these fintech applications, there has been enhanced money flow all over the country.

In order to further this company, the Indian government and the Asian Development Bank (ADB) collaborated on a US $23 million loan deal on March 14, 2024, at the Gujarat International Finance Tec-City (GIFT- City). The agreement was signed by Rajesh Vasudevan, Officer-in-Charge of the ADB's India Resident Mission, and Juhi Mukherjee, Joint Secretary of the Finance Ministry. Since its inception in 1966, the Asian Development Bank has worked to eliminate poverty and promote inclusion, sustainability, and resilience throughout Asia and the Pacific.

The International Fintech Institute (IFI) was founded by GIFT City in collaboration with GIFT City in an effort to develop an Indian fintech ecosystem. The initiative aims to establish the International Fintech Institute (IFI) with the help of other globally recognized institutions, offering tailored fintech training programs to meet corporate demands. In an effort to increase startup success rates, promote fintech innovation, and enhance education, the institution will provide customized fintech training programs. The project's emphasis on market-driven skills programs, encouragement of private sector investment, and improvement of industry-skills development institute-development partner interaction will all help to further the expansion of India's fintech ecosystem.

This institute will focus on growth based on two perspectives. Firstly, on a social basis, it will support women-led startups, social inclusion and innovation, and gender equality in finance. Secondly, on an economic basis, it will support startups, and new and green technologies, provide employment opportunities, enhance workforce competitiveness, and climate fintech. It will guide the states in developing a fintech readiness index for emerging technologies. 

ADB’s assistance to India will aid India’s fintech education prosper, which can make it accessible and more efficient in the coming years.

Thank you.

Regards,

Devansh Sheth,

Kautilya, IBS Mumbai.