Union Finance Minister Nirmala Sitharaman has urged financial sector regulators to proactively identify and map the aspirational needs of the Gujarat International Finance Tec-City (GIFT) International Financial Services Centre (IFSC). This directive came during a recent review meeting held at GIFT City, where Sitharaman emphasized the importance of positioning the financial hub as a leading global center.
Sitharaman, accompanied by a high-level team including Gujarat Finance Minister Kanubhai Desai, key secretaries from the Finance Ministry, and representatives from the Reserve Bank of India (RBI), SEBI, and IRDAI, assessed the progress of the GIFT IFSC project. During the meeting, GIFT City Co. Ltd and the International Financial Services Centres Authority (IFSCA) presented key policy, regulatory and tax reforms designed to enhance GIFT IFSC's standing on the world stage.
The Finance Minister commended GIFT IFSC's role in bolstering India's global financial presence and its impact on reshaping international financial engagement for Indian companies and individuals. However, she stressed the need to fast-track reforms to align with the vision of 'Viksit Bharat @2047'. This vision aims to transform India into a developed nation by 2047, and GIFT IFSC is expected to play a crucial role in attracting foreign investment and driving economic growth.
Sitharaman reiterated that GIFT IFSC's core mandate is to channel foreign capital into India through structured and well-regulated avenues. She highlighted India's advantages in technology and its large domestic market and financing needs. These advantages, she noted, should be leveraged to gain a competitive edge in the global financial arena. She also exhorted officials to make GIFT IFSC more competitive and cost effective to attract High Net Worth Individual (HNI) investments.
Furthermore, Sitharaman underlined the potential of IFSCA in mobilizing Sovereign and Pension Funds at IFSC for the financial needs of the country, as well as for aligning talent development with GIFT IFSC's expanding mandate, for ensuring a deep and future-ready workforce. She also emphasized the need to scale up operations at the India International Bullion Exchange (IIBX) by expanding stakeholder participation and strengthening price discovery, thereby positioning GIFT IFSC as a global bullion hub, given India's status as a major gold importer.
During the visit, Sitharaman interacted with senior representatives from 21 institutions across various sectors, including banking, insurance, capital markets, and fintech. Participants shared their experiences and offered suggestions for further growth, commending IFSCA's facilitation in business setup. Sitharaman acknowledged the value of these interactions, noting that they have helped resolve concerns and foster business growth over the years.
Sitharaman envisions GIFT IFSC as a prominent gateway for global capital flows into India, catering to the needs of high-growth sectors and contributing to the country's economic trajectory over the next two decades. She also emphasized the importance of developing GIFT City into a dynamic smart city with integrated, modern, and sustainable living infrastructure. Currently, over 865 entities have received in-principle and provisional approvals to establish a base in GIFT IFSC. Furthermore, IFSCA has approved a proposal to enable third-party fund management services in IFSC and cleared regulations for promoting innovation, operational efficiency and regulatory clarity for entities that support delivery of financial services in GIFT-IFSC.
