Context:
The Government of India and the Asian Development Bank (ADB) have signed a USD 23 million loan agreement to enhance access to quality fintech education, research, and innovation at the Gujarat International Finance Tec-City (GIFT-City).
Relevance:
GS II: International Relations
Dimensions of the Article:
- Key Highlights
- About GIFT-City
- About Asian Development Bank (ADB)
Key Highlights:
Establishment of International Fintech Institute (IFI):
- The project will establish an International Fintech Institute (IFI) aimed at strengthening fintech education, boosting startup success rates, and driving fintech research and innovation.
Focus Areas:
- Emphasis will be placed on market-driven fintech skills programs, private sector investment, and collaboration between industry, institutes, and partners for holistic growth.
- IFI will offer industry-aligned fintech training programs meeting international standards, supporting innovation, and entrepreneurship.
Research and Innovation:
- The ADB program will support research in climate fintech, regulatory technology, social inclusion, and gender equality in finance to develop new solutions and a state fintech readiness index.
About GIFT-City:
- GIFT-City is a business district and the first operational greenfield smart city in India, situated on the banks of the Sabarmati River in Gujarat.
- It aims to provide a conducive business ecosystem comparable to or surpassing leading global financial hubs.
- GIFT-City comprises a multi-service Special Economic Zone (SEZ), housing India’s first International Financial Services Centre (IFSC), and an exclusive Domestic Tariff Area (DTA).
About Asian Development Bank (ADB):
- The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966 to promote social and economic development in Asia.
- It is headquartered in the city of Mandaluyong, Metro Manila, Philippines.
- The ADB was modelled closely on the World Bank and an official United Nations Observer.
- Japan holds the largest proportion of shares in ADB followed by the USA, and it has a weighted voting system where votes are distributed in proportion with members’ capital subscriptions (just like the World Bank).
- The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries.
- ADB defines itself as a social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
- ADB aids in reducing poverty through investments in the form of loans, grants and information sharing (in infrastructure, health care services, financial and public administration systems), helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas.
