GANDHINAGAR: The state government plans to shortly announce a dedicated
policy
to promote the fintech industry with the dual aim of giving a thrust to the sector and garnering revenue in the form of direct and indirect taxes, top sources said.
“In a bid to promote this emerging sector, state government plans to unveil a dedicated policy, which will provide incentives to
fintech companies
that set up base in
Gujarat
. The incentives will be at par with those offered to the manufacturing industry,” said sources close to the development.
“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. Sops will also be provided for the development and training of manpower,” sources said.
The Gujarat government intends to create an ecosystem around Gandhinagar based GIFT City to attract players of fintech companies and develop trained manpower for the sector. Fintech or financial technology is a sunrise sector, which uses technology to improve services and activities related to finance.
‘Benefits outside GIFT area as well’Benefits under the proposed policy will be available to companies outside the GIFT city area as well," the sources added. Industry players sounded upbeat saying a dedicated fintech policy is a must for Gujarat. "The fintech policy along with a services sector policy will provide a much needed thrust to BFSI (banking, financial services and insurance) sector in the state. It will help attract global in-house centers (GIC) and business processing outsourcing (BPO) units to GIFT City and Gujarat,” said Jaimin Shah, Board Member, Nasscom.
“There must be a policy and incentives to attract and promote financial sector players, including financial sector business process outsourcing (BPO) units, to GIFT City,” added Shah, who is also the managing director of the Ahmedabad-based Dev IT Ltd.
The objective of GIFT City is to develop an information technology driven financial services ecosystem. The purpose of GIFT City cannot be fully achieved if there is no fintech policy for the state, said industry players. The government aims to initiate discussions with stakeholders after Diwali. One round of consultations with players in the industry has already taken place.
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