Parul
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on August 19, 2023, chaired a review meeting along with a team of Secretaries from the Ministry of Finance and Ministry of Corporate Affairs, on the development and growth of India’s maiden International Financial Services Centre (IFSC) at GIFT City in Gujarat’s Gandhinagar.
During the review meeting, Sitharaman emphasised the need for all stakeholders to recognise and support the identified pathways to elevate GIFT City as a premier financial hub so that it stands out as the best among its contemporaries on the global scale.
She further said that as envisioned by PM Modi, GIFT City should emerge not only as a lively international centre but also as a global leader in devising solutions to intricate financial challenges, especially in the climate of the current global economic headwinds.
The FM underlined that since GIFT IFSC has been recognised as a fast-moving International Financial Centre, priorities should be set out for attracting more and more business and creating large-scale investment.
Sitharaman exhorted both IFSCA and IRDAI to proactively engage with leading global insurance companies to establish GIFT as a premier global hub for insurance and reinsurance.
She furthermore emphasised using the maximum potential of the Indian International Bullion Exchange IFSC (IIBX) in ensuring disintermediation and efficient price discovery and asked RBI to pilot the import of TRQ gold under UAE CEPA through IIBX, which can pave the way for Indian banks efficiently using the IIBX platform.
FM Sitharaman mentioned that sunrise niche areas such as logistics for precious metals, global insurance, and aircraft-and-ship leasing should expand the portfolio of services provided out of GIFT city.
FM appreciated swift actions in streamlining approvals and accelerating infrastructure development, especially for the two Australian universities in line with the Budget 2022-23 announcements. This has helped in garnering interest from numerous global universities in the GIFT-IFSC.
The introduction of amenities such as a central park and food courts has notably enhanced the vibrancy and appeal of GIFT City, Sitharaman added. Union Finance Minister also asked that the Direct Listing of Indian shares on IFSC exchanges already approved by the Government of India must be advocated amongst relevant stakeholders.
Later, the FM 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. She commended all members for their contributions to IFSC’s journey thus far and emphasised the importance of sustained efforts to cultivate a favourable environment, and position GIFT-IFSC as a leading global financial gateway.
With reference to making GIFT City the global hub for accounting and financial back-office functions, Sitharaman noted that a comprehensive legal framework, catering to accounting, auditing, and taxation professionals, will soon be in place to enable them to provide the services to the world. Additionally, the minister urged all financial sector regulators to collaborate in stimulating business activities in GIFT-IFSC.
