Two additional Japanese banks are expected to join the GIFT City, adding to the 10 foreign and 16 local banks already present, as well as more than 550 businesses with assets totaling USD 47 billion, according to an official. This expansion of the city’s financial sector, overseen the International Financial Services Centres Authority (IFSCA), is anticipated to be a crucial factor in India’s economic growth, stated IFSCA chairman K Rajaraman.
Rajaraman also expressed the desire for Indian-origin funds and businesses located in tax-free jurisdictions to return to India and become part of the growing GIFT City hub. The city has become known for its ease of doing business procedures, processes, and laws that are setting international standards.
IFSCA is the regulatory body for Indian special economic zones like the GIFT City, and Rajaraman’s recent delegation to Tokyo resulted in the registration of two Japanese banks in the GIFT City, with more expected as he continues discussions with potential businesses at the Singapore Fintech Festival to be held from November 15th to 17th, 2023.
At the festival, Rajaraman highlighted the advantages of being in the Tax-Free GIFT City and revealed that 78 fund managers with 88 alternative investment funds, 82 funds totaling USD 90 billion, five insurance companies, and two stock exchanges (GIFT CITY Nifty of the National Stock Exchange and a bullion exchange) are already part of the business community established the Indian government and are integrated into the global financial network.
Rajaraman emphasized the potential for a significant amount of India-focused business to operate out of GIFT City, with 122 aircraft assets already leased in the tax-free city. He also mentioned the presence of three electronic trading platforms for international trade finance solutions and insurance companies with international joint venture partners.
The Singapore Fintech Festival saw the participation of 650 companies from around the world.