Make GIFT City more attractive for HNIs, sovereign and pension funds, says Sitharaman
New Delhi: Finance minister Nirmala Sitharaman on Thursday urged regulators and stakeholders at GIFT City to speed up efforts to attract more foreign capital into the country through structured and well-regulated mechanisms, emphasising the need to position the financial hub as a globally competitive gateway.
During her visit to the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar on Thursday, Sitharaman emphasised the need to make GIFT IFSC competitive and cost-effective to attract high-net-worth individuals' (HNI) investments into the country, said an official statement.
The minister, who was accompanied by a team of secretaries from the central government to review its progress and consult market participants at GIFT City, also underlined the potential of International Financial Services Centers Authority's (IFSCA) role in mobilizing sovereign and pension funds at IFSC for financial needs of the country.
IFSCA is a unified authority for financial products, financial services and financial institutions in International Financial Services Centres.
Reiterating the financial services centre's core mandate of bringing foreign capital into India through structured and well-regulated channels, the minister also highlighted the need for Indian financial sector regulators to take initiatives in this direction. Sitharaman said India has the twin advantage technology and availability of a very large domestic market.
Sitharaman's high-level review meeting was attended by Kanubhai Desai, Gujarat's minister of finance, energy and petrochemicals, Hasmukh Adhia, Chairperson, GIFT City Co. Ltd., K Rajaraman, Chairperson, IFSC Authority, and officials from the RBI, SEBI, IRDAI and IFSCA.
GIFT City and IFSCA officials presented key policy, regulatory, and tax reforms aimed at positioning the IFSC as a leading global financial centre. Sitharaman underscored its role in enhancing India's global financial standing and acknowledged its impact on reshaping international financial engagement by Indian companies and individuals, said the statement.
Given India's status as a major gold importer, the minister stressed on 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, the statement said.
Sitharaman interacted with senior representatives from 21 institutions across banking, insurance, capital markets, funds industry, finance companies, payment services providers, aircraft and ship leasing firms, techfin firms and foreign universities.
Market participants suggested additional initiatives required for growth of financial services business.
Sitharaman said GIFT IFSC should be developed as a prominent gateway for global capital flows into India to feed the needs of high growth sectors for India's growth trajectory over the next two decades. She emphasised on the importance of developing GIFT City into a dynamic smart city, equipped with integrated, modern, and sustainable living infrastructure.
'Establishing such world-class amenities is essential to attracting top-tier talent from both domestic and international markets,' the statement said, quoting the minister.
The government has an unwavering commitment to establish India as a premier global financial services hub as per Prime Minister Narendra Modi's vision for a Viksit Bharat by 2047, the statement said. (ends) gireesh.p@livemint.com
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