Gujarat International Finance Tech City (GIFT City) which is India’s first International Financial Services Centre (IFSC), is being titled as the ‘top emerging business hubs in the world’. The IFSC at GIFT City is being mentioned by the Global Financial Centers Index, London in September 2020 among the 15 centers globally. These centers will gain greater significance in the coming 24 months.
Full-service finance centers (Tokyo and New York), Offshore finance centers (Mauritius), and hybrid structures (Singapore) are the three different structures of IFSC’s. The first one largely supports a large domestic economy whereas the second one has international access and acceptance, not any robust domestic economy. The third one, the hybrid structure is adopted by India and it supports both, local and global businesses. Furthermore, GIFT IFSC will provide an ideal for both, global and domestic players.
Though GIFT IFSC was Prime Minister Narendra Modi’s dream project, it empowers the Indian banking and Financial Services and Insurance (BFSI) sector. It supports Indian business organizations to compete with global leaders without any office at global financial centers in Singapore, London, or Dubai. The recent past has seen it expand areas and activities which can be based within the IFSC, further empowering India’s competitiveness across global platforms. India is a late entrant to the IFSC world. But it has made its presence at a suitable time when there are several opportunities in the field of finance and India offers the huge potential that can be leveraged. The game-plan of tapping into the domestic economy and the Indian diaspora will pay rich dividends and will underscore the growth of GIFT IFSC.
To make India an important hub in global bullion trade, they have made announcements that created speculation in India’s business network which includes setting up an International Bullion Exchange (IBE) within the GIFT City IFSC. Along with that approval to the Stock Holding Corporation of India (SHCIL) to begin its customer services in GIFT City to help with India’s global trade. GIFT City was created to help out in playing with the competitors in the global markets. As compared to Indian hubs, GIFT IFSC also provides easiness in financial transactions with a lower rate of tax and easier regulations. It offers trading in mutual funds, stocks, currencies, and commodities, as well as a listing of international bonds. Starting up a fintech hub is a plan for GIFT IFSC.