On the second day of the Vibrant Gujarat Global Summit 2024, Finance Minister Nirmala Sitharaman provided a comprehensive overview of the current financial ecosystem within the Gujarat International Finance Tec-City (GIFT City).
Emphasising the city’s strategic importance, the Minister highlighted the significant presence of various financial entities and the thriving derivatives market.
Sitharaman said, “There are now three exchanges, twenty-six banks, and twenty-six aircraft lessors in the IFSC. The GIFT City is required to host the offices of aircraft firms. GIFT CITY is home to 86 fund managers and 8 ship leasing companies. GIFT City has advisors from 50 professional firms. GIFT city has 580 entities. By October, GIFT City’s derivative contract was worth 2.02 billion USD”.
In her address, Sitharaman underscored the importance of aircraft companies establishing their offices in GIFT City, revealing that 86 fund managers and eight ship leasing companies have already set up operations within the financial hub.
#WATCH | Vibrant Gujarat Global Summit 2024 | Union Finance Minister Nirmala Sitharaman says "There was an interesting observation made yesterday before the Prime Minister that all financial hubs across the world looked at capital as the first concern…looked at investable money… pic.twitter.com/dnHNbyt4ZC
— ANI (@ANI) January 11, 2024
The Finance Minister said, “The best adoption rate for fintech globally is 80 per cent. A worldwide fintech company based in India should have a presence in Gift City. Any international fintech company looking to do business in India needs to have offices in GIFT City. The PM stated yesterday that all global financial centres were seen as capital, with money coming in and money going out”.
Additionally, she noted that 50 professional firms and advisors, along with 580 entities, contribute to the vibrant financial landscape of GIFT City.
One of the key achievements highlighted by the Finance Minister was the substantial growth in derivative contracts, reaching a staggering USD 2.02 billion USD by October. The fintech adoption rate in GIFT City, standing at an impressive 80 per cent, was lauded as the best worldwide.
Sitharaman said, “By October, GIFT City’s derivative contract was worth 2.02 billion USD. Any international fintech company looking to do business in India needs to have offices in GIFT City. GIFT City has invested USD 10.18 billion in green bonds”.
Sitharaman stressed that GIFT City’s success is rooted in technology-driven financial services, asserting that without embracing technology, financial centres will not achieve their fastest pace of growth. Highlighting the resilience and growth of the Indian stock market, Sitharaman attributed its success to the active participation of retail investors and a stable policy framework.
“Financial centres won’t expand as quickly without using technology. Retail investors in India are contributing to the growth of our stock market. Due to steady policies and the involvement of regular investors, our stock market has thrived”, said Sitharaman
In a broader context, Sitharaman positioned India as a bridge between the developed world and the global south, asserting the country’s rising strength on the global stage.
She called for bold leadership and expressed confidence in India’s capacity to lead the way forward.
The Finance Minister said, “India may serve as a link between the global south and the developed world. India is becoming more powerful. We must aggressively and far-sightedly lead with our leadership. We have a courageous, level-headed leader leading us. India may serve as a link between the global south and the developed world. India is becoming more powerful”.
#WATCH | Vibrant Gujarat Global Summit 2024 | Union Finance Minister Nirmala Sitharaman says "Currently in the IFSC, we have three exchanges including the International Bullion Exchange. 25 banks are operating within the IFSC, out of which 9 are foreign banks. IFSC also has… pic.twitter.com/ZR9UXIoovu
— ANI (@ANI) January 11, 2024
“We must aggressively and farsightedly lead with our leadership. We have a courageous, level-headed leader leading us. India may serve as a link between the global south and the developed world. India is becoming more powerful. We must aggressively and far-sightedly lead with our leadership. We have a courageous, level-headed leader leading us. IFSC is the gateway for the world,” said Sitharaman.
The International Financial Services Centre (IFSC) in GIFT City, according to Sitharaman, stands as the gateway for the world, symbolising India’s pivotal role in the international financial landscape.
(with inputs from ANI)
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