India now entering league of countries like US, UK: PM Modi at GIFT City

Published on Jul 30, 2022 02:16 PM IST

Prime Minister Narendra Modi said that the International Financial Services Centers Authority (IFSCA) will create unlimited opportunities to make India an economic superpower

Prime Minister Narendra Modi laid the foundation stone for the International Financial Services Centres Authority (IFSCA) at the GIFT City near Gandhinagar in Gujarat on Friday. (ANI)
Prime Minister Narendra Modi laid the foundation stone for the International Financial Services Centres Authority (IFSCA) at the GIFT City near Gandhinagar in Gujarat on Friday. (ANI)

India is entering the league of nations like the US, UK and Singapore that are trend-setters in the shaping of global financial sector, Prime Minister Narendra Modi said on Friday.

The Prime Minister was speaking at a function at the Gujarat International Finance Tec-City (GIFT City) near Gandhinagar in Gujarat soon after laying foundation stone for the International Financial Services Centres Authority (IFSCA) and inaugurating the India International Bullion Exchange (IIBC) and NSE (National Stock Exchange) IFSC (International Financial Service Centre) and SGX (Singapore Exchange Ltd) Connect platform.

“Today, in GIFT City, the foundation stone of the International Financial Services Centers Authority (IFSCA) headquarters building, has been laid. I believe, as grand as this building is in its architecture, it will also create unlimited opportunities to make India an economic superpower,” he said. The Prime Minister said that IFSC will promote innovation and will be an enabler as well as a catalyst for growth. Institutions and platforms launched today will help 130 crore Indians to get connected with the modern global economy. “India is now entering the league of countries like the USA, UK and Singapore that are giving direction to global finance. I congratulate the people of this country for this achievement,’’ he added.

A brainchild of PM Modi, who envisaged GIFT City in 2007 when he was the chief minister of Gujarat, the project houses the country’s first IFSC. GIFT City is located on the banks of river Sabarmati in Gandhinagar district. Of the 880 acres of land over which GIFT City project is laid out, about 250 acres is earmarked for IFSC. IFSCA is the unified regulator for the development and regulation of financial products, financial services and financial institutions in International Financial Services Centres (IFSCs) in India.

“India is one of the world’s leading economies and will grow even bigger going forward; we should build institutions that can cater to our present and future roles,” the Prime Minister said.

Union finance minister Nirmala Sitharaman and Gujarat chief minister Bhupendra Patel were also present at the event.

The PM also launched NSE IFSC-SGX Connect platform. Under this system, all orders on Nifty derivatives placed by members of Singapore Exchange Limited (SGX) will be routed to and matched on the NSE-IFSC order matching and trading platform.

The Prime Minister said that GIFT City was envisaged not just for business but the aspirations of the common man of the country are part of the vision of it.

“The vision of India’s future is connected in GIFT City, and dreams of India’s golden past are also connected with this,” he said.

The Prime Minister recalled that in 2008, when the world was facing an economic crisis and was under recession, there was an atmosphere of policy paralysis in India. “But, at that time Gujarat was taking new and big steps in the field of Fintech. I am glad that that idea has progressed so far today,” he said.

He said that GIFT City is a venue where wealth creation is taking place and the best brains of the world are congregating and learning.

“GIFT-city is an important gateway to get connected with India as well as global opportunities. When you get integrated with GIFT City, you get integrated with the entire world,” he said.

The Prime Minister said today India is one of the largest economies in the world. In future, when our economy will be larger than today, we will need institutions that can cater to our present and future role in the global economy.

India International Bullion Exchange - IIBX, he said, is a crucial step in that direction.

IIIBX is aimed to facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialisation of gold in India. It will empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality. IIBX also re-enforces the commitment of the government of India towards enabling India to be able to influence global bullion prices as a principal consumer.

Modi mentioned the role of gold in ensuring economic empowerment of the Indian women. He said that India’s identity should not remain limited to just a big market but it should be a ‘market maker’. He added “On the one hand, we are bringing in global capital for local welfare. On the other hand, we are also harnessing local productivity for global welfare.”

The Prime Minister said GIFT IFSC will become a gateway to global debt and equity capital for sustainable and climate projects.

“GIFT City has progressed on all fronts be it banking, capital, fintech, funds, or insurance. In the banking sector alone, in the last two years the total assets have doubled and today they stand at USD 32 billion. Similarly in funds, the venture capitalist, private equity funds or hedge funds, all of them are looking at this jurisdiction for pooling of global funds that can be invested in India. I feel very proud that in the last few years, the finance ministry has actively engaged with the authorities at GIFT City and made sure that this centre rapidly achieves all goals it was meant to achieve,” Union minister Sitharaman said in her speech.

The Prime Minister said that the IFSCA should work for financial innovations in aircraft leasing, ship financing, carbon trading, digital currency and IP rights to investment management.

He said that IFSCA should also make regulation and operation cost competitive not only in India but also in comparison to countries like Dubai and Singapore. “Your aim should be to become a leader in regulations, set high standards for rule of law and emerge as the favourite arbitration center of the world.”

The NSE IFSC-SGX Connect is a framework between NSE’s subsidiary in the GIFT International Financial Services Centre (IFSC) and Singapore Exchange Limited (SGX). Under Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange will be routed to and matched on the NSE-IFSC order matching and trading platform. Broker-dealers from India and across international jurisdictions are expected to participate in large numbers for trading derivatives through Connect. It will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC.

“Today is a historic day for NSE IFSC as the NSE IFSC-SGX Connect has commenced. This connect will consolidate the liquidity pool for Nifty products in the NSE IFSC exchange and will facilitate access for global market participants in GIFT City. Consequently, it will give a boost to the IFSC capital markets eco system and is an important step towards making GIFT City a preferred global destination for capital market activities,” Ashishkumar Chauhan, MD & CEO, NSE said in a statement.

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