April 3, 2023
Injeti Srinivas, head of the International Financial Services Authority (IFSCA), recently spoke about the impressive growth of the banking asset size in GIFT City during a listing event for India Exim Bank’s first USD 1 billion, 10-year Sustainability Bond at India INX in GIFT City. According to Srinivas, the banking asset size in GIFT City has grown to USD 36 billion in a short period of time.
Srinivas went on to explain that GIFT City has gained a lot of traction over the last three years, with 23 banks currently operating in the city, 10 of which are foreign banks. This growth is a significant turning point for GIFT City, as the city has now issued over USD 50 billion.
The financial sector has also seen a lot of activity in GIFT City, with more than 60 funds established in the city. Srinivas noted that several funds have moved from countries like Mauritius and Dublin to GIFT City, with the pledges of these funds reaching up to USD 12 billion in less than a year. This growth is a clear indication that GIFT IFSC is maturing and becoming a significant player in the financial sector.
In order to ensure the development of a thriving financial ecosystem in GIFT City, the regulator has also granted permission for ancillary businesses such as audit companies, law firms, custodial services, and trusteeship services to conduct additional operations. This move will help to attract more businesses to the city and support its continued growth as a hub for financial services.
Overall, the growth and development of GIFT City are impressive, and it is clear that the city is becoming a major player in the financial sector. With continued support from the regulator and a thriving ecosystem of businesses, GIFT City is poised for even more growth and success in the future.
