Expansion of Financial Sector in GIFT City: Two Japanese Banks to Start Operations
The International Financial Services Centres Authority (IFSCA) chairman, K Rajaraman, has announced significant developments in the financial landscape of Gujarat International Finance Tec-City (GIFT City). Two Japanese banks are poised to become part of the growing hub, which already hosts 10 foreign and 16 local banks, along with more than 550 businesses boasting assets worth USD 47 billion.
GIFT City’s Role in Economic Growth
The influx of Japanese banks into GIFT City marks a substantial expansion of the financial sector. Rajaraman emphasized the city’s pivotal role in India’s economic growth trajectory, underlining its status as a tax-free zone that attracts businesses with streamlined procedures, processes, and legal frameworks aligning with international standards.
IFSCA’s Regulatory Oversight
As the regulatory body overseeing Indian special economic zones like GIFT City, IFSCA aims to foster an environment conducive to financial innovation and global connectivity.
Attracting Indian-Origin Funds and Businesses
Rajaraman expressed a desire for Indian-origin funds and businesses situated in tax-free jurisdictions to relocate to GIFT City, leveraging its growing ecosystem and strategic advantages.
Collaborations and Business Expansion
The recent delegation to Tokyo yielded positive results, with two Japanese banks registering in GIFT City. Ongoing discussions at the Singapore Fintech Festival further reinforce the city’s appeal, with more partnerships and collaborations expected.
Diverse Business Community
GIFT City boasts a diverse business community, including 78 fund managers, 88 alternative investment funds, 82 funds with a total corpus of USD 90 billion, five insurance companies, and two stock exchanges. The city is also home to electronic trading platforms, international trade finance solutions, insurance companies with global partners, and a robust aviation leasing sector.
Promoting Advantages at Singapore Fintech Festival
Rajaraman highlighted GIFT City’s advantages at the Singapore Fintech Festival, aiming to attract more businesses and showcase the city’s tax-free benefits, innovative platforms, and conducive business environment.
The growing presence of Japanese banks and the diverse business ecosystem in GIFT City underscore its significance as a global financial center and a catalyst for India’s financial sector growth.
