GIFT City: India's Global Finance Dream – Nirmala Sitharaman Urges Swift Reforms

India's vision of becoming a global financial powerhouse hinges significantly on the success of GIFT City, and Union Finance Minister Nirmala Sitharaman is pushing for an accelerated pace of reforms to make that a reality. During her recent visit to the Gujarat International Finance Tec-City (GIFT City), the minister underscored the urgent need to enhance its competitiveness, aligning it firmly with the government's ambitious 'Viksit Bharat @2047' agenda.

Minister Sitharaman, reviewing the progress of the International Financial Services Centre (IFSC) within GIFT City, emphasized India's unique strengths: its robust technological capabilities and a vast domestic market. These, she noted, are crucial assets in positioning GIFT IFSC as a leading global financial hub. A key directive from her visit was the imperative to draw in foreign capital through well-structured and transparent regulatory channels.

Her visit included two crucial high-level engagements. The first involved a comprehensive review meeting with GIFT City officials, regulatory stakeholders, and both state and central ministers. The second was a direct interaction with 21 market participants, gathering valuable insights from those actively operating within the financial ecosystem.

"Reforms aren't just an option; they're essential over the next few years to propel growth and attract foreign capital through well-regulated channels," Minister Sitharaman stated. She further highlighted, "India's technological edge and large domestic market must be leveraged to build competitiveness at IFSC. Regulators must proactively identify the aspirational needs of the financial sector to support this monumental effort."

During her separate discussion with market participants, the Finance Minister received suggestions aimed at significantly improving the ease of doing business at the IFSC. She specifically called for measures to make GIFT IFSC more cost-effective and appealing for high net-worth individual (HNI) investments. Furthermore, Sitharaman stressed the importance of mobilizing sovereign and pension funds at the center and ensuring that talent development is meticulously aligned with the IFSC's expanding mandate.

Another strategic area of focus highlighted by the Minister was the India International Bullion Exchange (IIBX). Given India's prominent position as a major gold importer, she suggested leveraging this to scale up the IIBX, thereby strengthening price discovery and solidifying GIFT IFSC's standing as a global bullion hub.

Beyond the financial aspects, Minister Sitharaman also envisioned GIFT City as a modern, sustainable smart city. She emphasized the need for world-class infrastructure that not only supports its role as a global financial hub but also actively helps in attracting skilled talent from across the globe.