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Finance Minister Nirmala Sitharaman unveils GIFT city's financial landscape

On the second day of the Vibrant Gujarat Global Summit, Finance Minister Nirmala Sitharaman presented a comprehensive overview of the current financial ecosystem within the Gujarat International Finance Tec-City (GIFT City). Underscoring the city’s strategic importance, the Minister highlighted the significant presence of various financial entities and the thriving derivatives market. Sitharaman stated, “There are […]

Nirmala Sitharaman
Nirmala Sitharaman

On the second day of the Vibrant Gujarat Global Summit, Finance Minister Nirmala Sitharaman presented a comprehensive overview of the current financial ecosystem within the Gujarat International Finance Tec-City (GIFT City).

Underscoring the city’s strategic importance, the Minister highlighted the significant presence of various financial entities and the thriving derivatives market. Sitharaman stated, “There are now three exchanges, twenty-six banks, and twenty-six aircraft lessors in the IFSC. The GIFT City is required to host the offices of aircraft firms. GIFT CITY is home to 86 fund managers and 8 ship leasing companies. GIFT City has advisors from 50 professional firms. GIFT city has 580 entities. By October, GIFT City’s derivative contract was worth 2.02 billion USD.”

Emphasizing the significance of aircraft companies establishing their offices in GIFT City, Sitharaman revealed that 86 fund managers and eight ship leasing companies have already set up operations within the financial hub.

Sitharaman asserted, “The best adoption rate for fintech globally is 80 per cent. A worldwide fintech company based in India should have a presence in Gift City. Any international Fintech company looking to do business in India needs to have offices in GIFT City. The PM stated yesterday that all global financial centres were seen as capital, with money coming in and money going out.”

In addition, she highlighted the contributions of 50 professional firms and advisors, along with 580 entities, to the vibrant financial landscape of GIFT City.

A notable achievement mentioned by the Finance Minister was the substantial growth in derivative contracts, reaching a staggering USD 2.02 billion USD by October. The fintech adoption rate in GIFT City, standing at an impressive 80 per cent, was acknowledged as the best worldwide.

Sitharaman stressed, “By October, GIFT City’s derivative contract was worth 2.02 billion USD. Any international fintech company looking to do business in India needs to have offices in GIFT City. GIFT City has invested USD 10.18 billion in green bonds.”

She highlighted that GIFT City’s success is rooted in technology-driven financial services, emphasizing that without embracing technology, financial centres will not achieve their fastest pace of growth.

Attributing the success of the Indian stock market to the active participation of retail investors and a stable policy framework, Sitharaman highlighted the resilience and growth of the market.

“Financial centres won’t expand as quickly without using technology. Retail investors in India are contributing to the growth of our stock market. Due to steady policies and the involvement of regular investors, our stock market has thrived,” said Sitharaman.

In a broader context, Sitharaman positioned India as a bridge between the developed world and the global south, asserting the country’s rising strength on the global stage. She called for bold leadership and expressed confidence in India’s capacity to lead the way forward.

Sitharaman stated, “India may serve as a link between the global south and the developed world. India is becoming more powerful. We must aggressively and far-sightedly lead with our leadership. We have a courageous, level-headed leader leading us. IFSC is the gateway for the world,” emphasizing the International Financial Services Centre (IFSC) in GIFT City as a symbol of India’s pivotal role in the international financial landscape.

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Fintech companyGIFT CityInternational Financial Services CentreNirmala SitharamanVibrant Gujarat Global Summit