Edited by Deepali Verma
The second day of the Vibrant Gujarat Global Summit saw Finance Minister Nirmala Sitharaman provide a comprehensive overview of the current financial ecosystem within the Gujarat International Finance Tec-City abbreviated as GIFT City.
Emphasising on the city’s strategic significance, the Minister discussed the important presence of various financial entities and the thriving derivatives market. Sitharaman said, “There stand presently three exchanges, twenty-six banks, and twenty-six aircraft lessors in the IFSC. The GIFT City is needed to host the offices of aircraft firms. GIFT CITY houses 86 fund managers and 8 ship leasing companies and has advisors from 50 professional firms along with 580 entities. By October, GIFT City’s derivative contract was noted to have a worth of 2.02 billion USD”.
Sitharaman’s address explored the importance of aircraft companies establishing their offices in GIFT City, revealing that 86 fund managers and eight ship leasing companies have already established their operations within the financial hub.
The Finance Minister said, “The best adoption rate for fintech globally stands at 80 per cent. A worldwide fintech company with basis in Bharat should have a presence in Gift City. Any international fintech company seeking to do business in Bharat requires to have offices in GIFT City. The PM recently elaborated that all global financial centres were seen as capital, with money coming in and money going out”.
Another key achievement that the Finance Minister discussed was the substantial growth in derivative contracts, reaching a staggering USD 2.02 billion USD by October. The fintech adoption rate in GIFT City, at an impressive 80 per cent, was appreciated as the best worldwide.
Sitharaman informed, “By October, GIFT City’s derivative contract amounted to 2.02 billion USD. Any international fintech company seeking to do business in Bharat needs offices in GIFT City. GIFT City has an investment of USD 10.18 billion in green bonds”.
Sitharaman laid emphasis on the fact that GIFT City’s success is rooted in technology-driven financial services, asserting that without embracing technology, financial centres will not achieve their desired and fast pace of growth.
Conversing about the resilience and growth of the Indian stock market, Sitharaman attributed its success to the spirited participation of retail investors along with a stable policy framework. She said, “Financial centres and their quick expansion is not possible without using technology. Retail investors in Bharat are contributing to the growth of our stock market. Owing to the steady policies and the involvement of regular investors, our stock market has thrived”, said Sitharaman
Glancing at the bigger picture, Sitharaman positioned Bharat as a bridge between the developed world and the global south while asserting the country’s rising strength on the global stage. She put out a call for bold leadership and expressed optimism in Bhara’s capacity to lead the way forward.
“We must aggressively proceed with our leadership. We have the presence of a courageous, level-headed leader leading us. Bharat has the ability to serve as a link between the global south and the developed world as it is becoming more powerful,” said Sitharaman.
The International Financial Services Centre (IFSC) in GIFT City, per Sitharaman, stands as the gateway for the world, as a symbol of Bharat’s pivotal role in the international financial landscape.
