PR No – 36
14th February, 2024
New Delhi
Recent reforms of the Goverment have put the financial sector in a good position; Shri K Rajaraman, IAS, Chairperson of the International Financial Services Centres Authority (GIFT CITY)
Shri K Rajaraman, IAS, Chairperson of the International Financial Services Centres Authority (GIFT CITY), in an Interactive Session organised at PHD House, New Delhi on February 14th, 2024 discussed on India’s growing reputation as an economic powerhouse and many believe that India holds the key to the future global economy.
He added, while India already has a strong diplomatic and economic presence, there’s more to be done. The government’s goal for India 2047 with the recent reforms have put the financial sector in a good position. India’s growth and policy environment have gained the trust of foreign investors, which is expected to lead to further growth. Initiatives like financial inclusion reforms and micro-insurance schemes have helped uplift the less privileged sections of society.
Mr. Rajaraman believes that this trend will continue in the next 25 years, however, with more focus on education and healthcare sector. Achieving targets like net zero emissions will require significant investment in social, economic, and infrastructure sectors, estimated at around 18 trillion dollars.
GIFT City offers an attractive platform for businesses and entities seeking capital and growth opportunities, with regulations updated every three years. We encourage entities and businesses to explore the opportunities offered by GIFT City, which also provides a tax-efficient platform, added Rajaraman.
Speaking on the opportunities, Dr. Dipesh Shah, Executive Director (Development), IFSCA – GIFT City emphasized that the next 10 years will define the India story. In terms of its value proposition, it’s still an evolving financial center but is progressing at a good pace. Key reforms such as GST, IBC, and the implementation of 4 Labour codes have shown exponential results. India will require a cumulative net capital inflow of $11-18 trillion to fund its Gross Fixed Capital Formation requirement for 2047, translating to approximately $750 billion per year. Currently, India is exporting businesses and jobs outside the country, which underscores the need to establish an International Financial Center within the country. Setting up an IFC provides the advantage of operating outside FEMA and Tax laws. To address this, three problem statements were identified. Firstly, the question of whether something better than Singapore could be created. The solution involves developing a city with superior infrastructure, financial services, and global-level tax laws. Secondly, the establishment of a smart city based on principles that cater to various needs. Lastly, creating an ecosystem aligned with international standards to support the functioning of the IFC.
Mr. Sanjeev Agrawal, President, PHDCCI discussed that our nation has transformed remarkably since the past one decade. The confidence that our business community is beaming with was never seen before. A new India is taking shape with a sharp focus on execution. The launch of GIFT City has only added to the sustained momentum. Gift City represents a vision, a testament to India’s ambition to become a global financial powerhouse.
One of the key pillars of Gift City’s future success lies in its ability to attract global financial institutions and multinational corporations. As more companies establish their presence here, it will create a ripple effect, fostering collaboration, competition, and growth. In addition to its economic and technological prowess, Gift City holds immense potential to bring together people from diverse backgrounds, cultures, and perspectives. This diversity will not only enrich the social fabric of Gift City but also foster creativity, innovation, and cross-cultural understanding.
We at PHDCCI assure to provide our support to the Government and IFSCA in promoting GIFT City an investor’s paradise though awareness and knowledge sessions in times to come.
Hemant Jain, Senior Vice President, PHDCCI, said, Recent developments in India’s economy, such as regulatory reforms and infrastructure investments, are creating a conducive environment for the growth of vibrant economic zones like the Gift City. The government’s focus on ease of doing business and digitalization are key factors driving investment and innovation in such cities, attracting both domestic and foreign businesses. Additionally, initiatives to boost connectivity and promote international trade are further enhancing the potential of Gift City as a global financial hub. These initiatives will go a long way in promoting GIFT City as a preferred investment destination.
Vote of thanks was presented by Shri Rajeev Juneja, Vice President, PHDCCI he said, the IFSC is fast emerging as the preferred destination for a growing number of businesses involved in the financial services sector, IT-enabled services, business process outsourcing, among others.
Prioritizing IFSC-GIFT City as a global financial services hub and addressing tax structures and regulatory frameworks will be crucial considerations for the future. A unified approach to these measures will contribute to a resilient and progressive financial ecosystem.
We are sure that in times to come, GIFT City will indeed emerge as a preferred investor’s destination. As we embark on this journey together, let us seize the opportunities that lie ahead and build a future that is prosperous, sustainable, and inclusive for all.
Mr. Saket Dalmia, Immediate Former President, PHDCCI informed how as recently reported, the state government has formalized several MoUs with prominent international firms, intending to forge strategic partnerships in the digital technology sector and establish finance sector entities within Gujarat’s GIFT IFSC. While GIFT-IFSC has seen a series of significant announcements within a short timeframe, moving forward, there will be a pressing need for more collaborative efforts to propel initiatives in IFSC-GIFT City .
Dr. Ranjeet Mehta, Executive Director, PHDCCI, said, GIFT City is crucial for India’s economic growth. It serves as a vital hub for global collaboration and innovation in the financial sector. With GIFT City, India aims to set new standards in financial sector and attract international investment, which will lead to brighter economic future. By providing a conducive environment for businesses and investors, it fosters economic growth and job creation. With its cutting edge infrastructure and regulatory framework, GIFT City is poised to drive India’s financial sector forward into the future.
The event was moderated by Mr. B K Sabharwal, Chair, Capital Market and Commodity Market Committee, PHDCCI.
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Warm Regards,
Media Division
PHD Chamber of Commerce and Industry