GIFT City: PM Modi calls for GIFT City to compete with Dubai, Singapore

Prime Minister Narendra Modi on Friday sought to redouble efforts to support India’s billions in banking businesses that call Hong Kong, Dubai and Singapore their established homes in Asia, opening dedicated local units of Deutsche Bank, JP Morgan and MUFG and a bullion exchange that would benefit. From a single regulatory framework in GIFT City.

“Integration with global markets and supply chain is our main agenda. GIFT City is an important gateway to this,” said Prime Minister Modi as he inaugurated a series of initiatives at the emerging Ahmedabad facility, billed as India’s future answer to Canary Wharf. “It will help make India a financial superpower.”

Addressing the 75th anniversary of India’s Independence, Prime Minister Modi highlighted the future global role of GIFT City in achieving the national goal of high financial self-reliance. GIFT City should be a center of excellence to compete with the continent’s trusted money centres, the Prime Minister said, adding that sophisticated financial engineering has become the norm in an increasingly interconnected world economy based on sustainability. and debt capital for sustainable development,” PM Modi said. “GIFT has to compete with centers in Dubai and Singapore.”

The International Financial Services Central Authority (IFSCA) is the regulator that will traditionally oversee overseas transactions, providing a single regulatory infrastructure for businesses based in GIFT City.

India is the largest consumer of gold. Creation of bullion exchange

To earn its rightful place in the gold market and serve the global value chain with integrity and quality, IFSCA said in a statement. This is the third such exchange in the world, which in turn will make the Indian bullion market more organized.

Up to 64 qualified jewelers were involved. Many more are under discussion. The stock exchange is headed by Mumbai-based banker Ashok Gautam. “We have a big market for bullion. India should also be identified as a market maker,” PM Modi said, adding that the bullion exchange was an effort to do so.

The Prime Minister’s presence marked the official launch of NSE IFSC-SGX Connect, a bespoke platform where members of the Singapore Stock Exchange can order Nifty derivatives that can be matched on the NSE-IFSC trading platform. This will deepen liquidity in derivative deals at GIFT-IFSC and attract more international investors.

PM Modi also laid the foundation stone of the building that will be the home of IFSCA. It is expected to be completed by 2024.

‘MILSTONE EFFECT’

Finance Minister Nirmala Sitharaman said GIFT City has a significant impact on the country. “GIFT City is recognized today among the global financial centers around the world,” he said.

Including about twenty global lenders

, , Bank of America, HSBC, Standard Chartered and , have doubled the size of their consolidated balance sheet to $35 billion over the past two years since the single regulator received official status. “Cross-location and cross-border activity among our clients is increasing and GIFT IFSC is uniquely positioned to act as India’s international financial gateway,” said Madhav Kalyan, MD & CEO, JPMorgan Chase Bank India and Chief Country Officer. “This will allow us to offer our customers a wider range of products as they continue to grow their businesses.”

Trade finance began with the establishment of four international trade finance services (ITFS) of the IFSCA.

IFSCA said it will create the first such regulator-led ecosystem globally to facilitate cross-border trade financing with participants as a whole.

The unified regulator CorpData IFSC has issued clearance certificates to at least five FinTech firms, including EdgeVerve.

, Signzy Technologies, UMBO IDTech and Q Krishi Quantum. They are engaged in agricultural technology sectors.

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