Gujarat: PM Modi's GIFT City Gears Up For Next Growth Phase With Direct Listings, Re-Insurance

GIFT (Gujarat International Finance Tec-City) City, a flagship project of Prime Minister Narendra Modi and inaugurated during his tenure as Chief Minister of Gujarat, is gearing up for its next phase of expansion.

Since its inception in 2007, GIFT City has transformed into a comprehensive financial ecosystem.

K Rajaraman, Chairman of the International Financial Services Authority (IFSCA), shared insights into the impressive development and future aspirations of GIFT City, as reported by Moneycontrol.

Rajaraman highlighted the pivotal role of IFSCA as a unified regulator, issuing over 30 regulations across diverse industries such as aircraft leasing, ship leasing, banks, funds, capital markets, and insurance.

A standout achievement for GIFT City is the impressive growth in the cumulative debt listing at GIFT IFSC stock exchanges, reaching $52.7 billion as of 30 September 2023.

Rajaraman emphasised that $10.18 billion of the listed debt is attributed to environmental, social, and governance (ESG) bonds, signaling positive momentum for the GIFT IFSC bond market amidst diminishing concerns about inflation and interest rates.

In a bid to simplify processes and attract global players, the IFSCA is set to launch a single-window IT system in January, streamlining the process of obtaining regulatory clearances.

This initiative aims to offer tax and policy certainty, creating an environment conducive to international financial activities.

While addressing challenges, Rajaraman acknowledged a surge in applications that has outpaced infrastructure development but expressed confidence that substantial inventory will soon be available.

As GIFT City unfolds its vision for sustained growth, the developments at GIFT City are closely monitored, reflecting its aspirations to solidify its standing on the international stage.