Prime Minister Narendra Modi is expected to formally launch the operations of JPMorgan Chase, Deutsche Bank, and Japan’s MUFG Bank at the International Financial Services Centre (IFSC) on July 15, giving Gujarat the biggest push in becoming the Indian hub for global finance.
Finance Minister Nirmala Sitharaman is expected to attend the event. These organisations are among the largest in the trillion-dollar global loan and derivatives markets. The Shanghai-headquartered New Development Bank (formerly known as BRICS Development Bank), is also set to inaugurate its Regional office for India in GIFT City. Meanwhile, a 10-member delegation of top officials from the IFSC is currently in London courting international investors. According to an MUFG spokesperson, the financial services firm is “on track to open our branch in the first half of the fiscal year.”
The Prime Minister may also launch a few specialised platforms to attract global investors. These include ‘Agritech,’ which assists local farmers in finding international buyers for their produce, and a fintech platform that allows lenders to digitally process loan applications with minimal human intervention. Following the pandemic, GIFT City is quickly gaining traction, with a significant increase in business volumes. An estimated 129 entities set up shop there between April 2015 and September 2020 and since then 180 entities have set up shop at GIFT City. The IFSCA now anticipates at least 400 applications in the current fiscal year 2023. According to the sources, it has already received about 50 applications as of the end of June.