In a significant development, Indian companies are on the verge of gaining the ability to list their stocks directly in the Gujarat International Finance Tec (GIFT) City, fostering easy access to global funds. Finance Minister Nirmala Sitharaman revealed the impending move during her address at the 10th Vibrant Gujarat Global Summit on Thursday, expressing confidence in a seamless and systematic implementation.
Key Highlights:
- Strategic Move for Global Access: Sitharaman emphasized that the process of allowing Indian firms to list directly in GIFT City is advancing methodically, envisioning it as a pivotal gateway for Indian businesses to tap into global financial markets.
- Vision for IFSC Role: The Finance Minister highlighted the role of the International Financial Services Centre (IFSC) in supporting India’s aspiration to become a developed nation by 2047. The IFSC is poised to act as a conduit connecting Indian companies with global economic opportunities.
- Sustainability Focus: Sitharaman stressed the need for a comprehensive understanding of carbon emissions and environmentally sustainable practices. India, aspiring to achieve net-zero commitments by 2070, faces a funding gap of $10.1 trillion, prompting exploration of avenues like blended finance and de-risking mechanisms.
- GIFT City Achievements: GIFT City has evolved into a robust financial ecosystem, hosting diverse entities such as the International Bullion Exchange, banks, aircraft lessors, fund managers, professional service providers, and fintech entities.
- Fusion of Finance and Technology: Unlike traditional financial hubs focusing solely on capital, GIFT City’s unique strength lies in combining financial services with technology. This fusion, according to Sitharaman, positions India ahead in a rapidly growing global landscape.
Paytm’s Investment and Innovation:
In alignment with GIFT City’s potential, fintech giant Paytm recently announced an INR 100 crore investment in the economic zone. Paytm aims to gradually execute the investment, seeking necessary approvals, and plans to innovate in technology to cater to international users interested in investing in India.
GIFT City’s Growth Trajectory:
Gujarat Chief Minister Bhupendra Patel affirmed GIFT City’s trajectory towards becoming a premier international financial center. The ongoing massive infrastructure expansion is set to increase the total land area to approximately 3,400 acres, reinforcing GIFT City’s prominence.
In Shorts:
Sitharaman’s announcement signals a transformative phase for Indian businesses, providing a direct avenue to global markets through GIFT City. The convergence of financial services and technology positions GIFT City as a dynamic player in the global financial landscape.
