DBT Bureau
Bengaluru, 29 June 2024
Karnataka government has urged the centre to set up a dedicated Central Business District (CBD) in the lines of Gujarat’s Gift City in the state in order to further strengthen the fintech ecosystem.
The demand was made by IT & BT Minister of Karnataka government, Priyank Kharge before the Union finance minister Nirmala Sitharaman and Union IT minister Ashwini Vaishnav ahead of the Union Budget, scheduled to be tabled in July.
“The state has a vibrant economy with IT, BT, aerospace, automotive, textiles, and heavy industries forming the cream of the investment pie. The state is strategically located, and is well-positioned to replicate a similar business (on the lines of GIFT city) hub in its bosom,” Kharge wrote in a letter as part of the state’s budget wish list.
According to the state, a GIFT City-like fintech hub in the state would boost economic growth and create employment opportunities by attracting foreign direct investments.
“Karnataka’s IT credentials are beyond compare or dispute, with the state standing third in the country with $4.5 billion worth of electronic exports, is the most innovative with 46% of the national share, and contributing 10% to India’s industrial output,” he said in the letter.
Apart from being known as the ‘Silicon Valley’ of India, Bengaluru also has a vibrant fintech ecosystem. The city is home to marquee fintechs including Zerodha, CRED, PhonePe, Razorpay, Intuit, Groww, Pine Labs, and many others.
Apart from these home-grown fintechs, the city also has multiple technology centres of global financial institutions including Visa, PayPal, Wells Fargo, and many others.
As per reports, Bengaluru has emerged as the top centre with maximum fundraising of around $752 million by fintechs during January-March period of 2024.
Setting up a centre in the line of GIFT City will further consolidate Karnataka’s position as a top fintech hub in the country.
