Sitharaman reviews progress of India’s first IFSC at GIFT City

Sitharaman stressed the importance of recognizing and supporting the identified pathways to elevate GIFT City as a premier global financial hub. She echoed the vision of Prime Minister Narendra Modi, stating that GIFT City should not only be an international center but also a global leader in solving complex financial challenges, especially amid current global economic headwinds.

The meeting, organized by GIFTCL in collaboration with Gujarat government, was attended by key government officials and Indian financial sector regulators. During the meeting, presentations were made by chairman of GIFT City and the chairman of the International Financial Services Centre Authority (IFSCA), highlighting significant milestones and achievements in the IFSC’s journey. The Gujarat government discussed the various policy supports and incentives extended to promote the IFSC.

Emphasizing GIFT IFSC’s recognition as a fast-moving International Financial Centre, Sitharaman urged stakeholders to prioritize attracting more businesses and large-scale investments. She encouraged IFSCA and IRDAI to actively engage with leading global insurance companies to establish GIFT City as a premier global hub for insurance and reinsurance.

Sitharaman also called for maximizing the potential of the Indian International Bullion Exchange IFSC (IIBX) to ensure efficient price discovery and disintermediation. She suggested that the Reserve Bank of India pilot the import of TRQ gold under UAE CEPA through IIBX, facilitating Indian banks’ efficient use of the platform.

The finance minister highlighted that emerging niche areas such as logistics for precious metals, global insurance, aircraft-and-ship leasing should expand the portfolio of services offered by GIFT City.

Sitharaman commended the swift actions taken to streamline approvals and accelerate infrastructure development, notably mentioning two Australian universities aligning with the Budget 2022-23 announcements. She noted that this has attracted interest from numerous global universities in GIFT-IFSC.

The addition of amenities like a central park and food courts has enhanced the vibrancy and appeal of GIFT City, Sitharaman added. She also advocated for the direct listing of Indian shares on IFSC exchanges, a move already approved by the government.

Regarding making GIFT City a global hub for accounting and financial back-office functions, Sitharaman mentioned that a comprehensive legal framework catering to accounting, auditing, and taxation professionals would soon be in place. She urged all financial sector regulators to collaborate in stimulating business activities in GIFT-IFSC.

Later, the finance minister visited IFSCA headquarters in GIFT City and addressed the members of the IFSC Authority along with secretaries of the ministry of finance and ministry of corporate affairs.

Updated: 19 Aug 2023, 07:10 PM IST