The government in the Indian state of Gujarat is planning to introduce policies that will support the growth of the local Fintech sector. The state is looking to generate more revenue and may also be looking to acquire additional income via direct and indirect taxes on new businesses.
As first reported by the Times of India, the state of Gujarat will be focused on promoting the emerging Fintech sector. New policies will be introduced so that Fintech firms have more incentives to launch their business operations in Gujarat. These special incentives will be “at par with those offered to the manufacturing industry.”
The announcement stated:
“Like manufacturing firms, Fintech companies will get EPF, electricity duty exemption and stamp duty exemption among other benefits. Moreover, the government plans to give incentives like extra FSI for the new buildings coming up for the Fintech industry. Standard operating procedures (SOPs) will also be provided for the development and training of manpower.”
The government in Gujarat is also planning to establish an ecosystem around Gandhinagar based GIFT City in order to attract more Fintech firms. The state’s government is also focused on offering or supporting appropriate training programs for Fintech industry professionals.
India is one of the world’s fastest-growing economies and is expected to become even larger in the coming decade. Fintech adoption in the country is on the rise. As reported recently, Indian Fintech GetVantage acquired $5 million in seed funding to develop digital commerce solutions.
Indian companies have also been expanding their operations into global markets. India’s Tata Consultancy Services recently partnered with Australian neobank Volt to power a new banking as a service platform.
As covered in October 2020, India’s new Fintech sandbox program will be managed by the recently established International Financial Services Centres Authority.
Fintech firms are now a “critical constituent” of the Indian financial services sector, according to a new report.