Digital Tech, New Forms Of Capital Will Help In Shaping Up GIFT City: PM Modi

SUMMARY

PM Narendra Modi said that the International Financial Services Centres Authority (IFSCA) is also looking at GIFT City to be a global hub for climate financing

PM Modi was delivering the inaugural speech virtually at the Infinity Forum 2.0, organised at GIFT IFSC, in the run-up to the 10th edition of the Vibrant Gujarat Global Summit

The Centre is looking to develop GIFT City as a global financial hub and a virtual offshore destination for startups and investors

New forms of capital and digital technology will play an important role in the development of Gujarat International Finance Tec-City IFSC (GIFT City), said Prime Minister Narendra Modi on Saturday (December 9).

PM Modi was delivering the inaugural speech virtually at the Infinity Forum 2.0, organised at GIFT IFSC, in the run-up to the 10th edition of the Vibrant Gujarat Global Summit, slated for next month.

“The efficient regulation, plug and play infrastructure, reach up to large Indian hinterland economy, beneficial cost of operations and talent advantage are enabling the GIFT City to create unprecedented opportunities,” the prime minister said.

Modi said that the International Financial Services Centres Authority (IFSCA) is also looking at GIFT City to be a global hub for climate financing.

“According to some estimates, for India to achieve its net zero target by 2070, it will need at least $10 Tn. A certain amount of these investments are also required to be financed through global sources. Therefore, we also want to make IFSCA a global hub for sustainable finance,” the PM said.

The forum was attended by over 300 CXOs, with participation from India and a global audience from over 20 countries, including the US, the UK, Singapore, South Africa, UAE, Australia and Germany.

The Centre is looking to develop GIFT City, developed under the Special Economic Zones Act of 2005, with two distinctive zones – the GIFT SEZ (the non-IFSC area) and the GIFT IFSC, as a global financial hub. The government also wants to promote GIFT as a virtual offshore destination for startups and investors.

As part of these efforts, IFSCA chairman K Rajaraman said earlier this year that the regulatory body is looking to operationalise the framework for direct listing of companies, including startups, on IFSC exchanges by the end of the ongoing year.

Earlier in July, finance minister Nirmala Sitharaman said that the government has allowed Indian companies to list directly on IFSC Exchanges.

Meanwhile, the government’s efforts have started showing results, with tech giant Google currently setting up its global fintech operation centre at GIFT.