India’s first International Financial Services Centre (IFSC) at the Gujarat International Finance Tech City (GIFT City) made its global mark

India’s first International Financial Services Centre (IFSC) at the Gujarat International Finance Tech City (GIFT City) made its global mark, being named among the ‘top emerging business hubs in the world’. The latest Global Financial Centers Index, London in September 2020 mentions the IFSC at GIFT City among 15 centers which globally, are likely to gain greater significance over the next 24 months.

There are three different structures of IFSCs: Full-service finance centre (Tokyo and New York), which largely support a large domestic economy; Offshore financial centers (Mauritius) which may not have a robust domestic economy but have international access and acceptance. The third, which India has adopted, is the hybrid structure (Singapore), which supports both, local and global business. Effectively, GIFT IFSC will provide an ideal for both, global and domestic players.

Going beyond just being Prime Minister Narendra Modi’s dream project, GIFT IFSC empowers the Indian BFSI sector. It enables Indian business organizations to compete with global players – without the need to set up an office at global finance centers like Singapore, Dubai or London. The recent past has seen it expand areas and activities which can be based within the IFSC, further empowering India’s competitiveness across global platforms.

Though India is a late entrant in the IFSC space, GIFT IFSC has made its presence felt at a time when there are more opportunities in the financial world; and India offers huge potential that can be leveraged. The game-plan of tapping into the domestic economy and the Indian diaspora will pay rich dividends, and will underscore the growth of GIFT IFSC.