India now entering league of US, UK and Singapore in giving direction to global finance: PM Modi



Prime Minister Narendra Modi, while laying the foundation stone for the International Financial Services Centers Authority (IFSCA) headquarters building at GIFT City in Gandhinagar, on July 29 said that India is now entering the league of countries like the US, UK and Singapore.

He also launched the India International Bullion Exchange (IIBX), India’s first International Bullion Exchange in GIFT-IFSC and the NSE IFSC-SGX Connect.

Addressing the gathering, Modi said, “Today, in GIFT City, the foundation stone of the International Financial Services Centers Authority – IFSCA headquarters building, has been laid. I believe, as grand as this building is in its architecture, it will also create unlimited opportunities to make India an economic superpower.”

He added that the IFSC will promote innovation and will be an enabler as well as a catalyst for growth. Institutions and platforms launched today will help 130 crore Indians to get connected with the global economy. “India is now entering the league of Countries like the USA, UK and Singapore who are giving direction to global finance,” he said.

The Prime Minister noted that GIFT City is making a strong mark as a hub of commerce and technology. He expressed satisfaction to see that through GIFT City, India is moving ahead with a strong stake in the service sector globally. He said that GIFT-city is a venue where wealth creation is happening and the best brains of the world are congregating and learning. “In a way, it is also a medium of reclaiming India’s glory in finance and business,” Modi said.

The Prime Minister said that a vibrant fintech sector does not just mean an easier business climate, reforms and regulations. It is also a medium to give a better life and new opportunities to professionals working in different fields.

He added that post-independence, may be due to the impact of slavery and weak self-confidence, the country kept shying away from the glorious legacy of business and finance and restricted its cultural, economic and other relations with the world. “However, now, ‘New India’ is changing this old way of thinking and today Integration is one of our most significant agenda. We are rapidly integrating with a global market and global supply chain”, he said. “GIFT-city is an important gateway to get connected with India as well as global opportunities. When you get integrated with GIFT-city, you get integrated with the entire world”, he said.

He asserted that now India is one of the largest economies of the world. “So in the future, when our economy gets bigger than it is today, we have to be ready for it now. For this we need institutions that can cater to our present and future role in the global economy. India International Bullion Exchange – IIBX is a crucial step in that direction,” he said.

Modi said that India’s strength goes beyond giving good returns to investors. He elaborated, “At a time when global supply chains are plagued with uncertainty and the world is apprehensive of this uncertainty, India is assuring the world of quality products and services.” He added, “I have many expectations from the new institutions of new India, from the new systems and I have full faith in you. Today, in the 21st century, finance and technology are linked to each other. And, when it comes to technology, science and software, India also has an edge as well as experience too.” While underlining India’s leadership in fintech, he asked the GIFT-city stakeholders to focus on fintech. “I expect all of you to target new innovations in Fintech and GIFT IFSC emerges as fintech’s global laboratory.”

Modi also referred to the GIFT IFSC as a gateway to global debt and equity capital for sustainable and climate projects. He said that IFSCA should work for financial innovations in aircraft leasing, ship financing, carbon trading, digital currency, and IP rights to investment management. Modi said, “IFSCA should also make regulation and operation cost competitive not only in India but also in comparison to countries like Dubai and Singapore. Your aim should be to become a leader in regulations, set high standards for rule of law, and emerge as the favourite arbitration center of the world.”

The Prime Minister noted that in the last 8 years, the country has witnessed a new wave of financial inclusion. Even the poorest of the poor are joining formal financial institutions today. “Today, when a large population of ours has joined finance, it is the need of the hour that government organizations and private players, together, step forward,” he said. The Prime Minister called for financial literacy above basic banking as people wish to invest for growth.

About GIFT City, IFSCA, IIBX and NSE IFSC-SGX Connect

GIFT City (Gujarat International Finance Tec-City) was envisaged as an integrated hub for financial and technology services not just for India but for the world. IFSCA is the unified regulator for the development and regulation of financial products, financial services and financial institutions in International Financial Services Centres (IFSCs) in India. The building has been conceptualized as an iconic structure, reflective of the growing prominence and stature of GIFT-IFSC as a leading International Financial Centre.

IIBX will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialization of gold in India. It will empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality. IIBX also re-enforces the commitment of the government of India towards enabling India to be able to influence global bullion prices as a principal consumer.

NSE IFSC-SGX Connect is a framework between NSE’s subsidiary in the GIFT International Financial Services Centre (IFSC) and Singapore Exchange Limited (SGX). Under Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange will be routed to and matched on the NSE-IFSC order matching and trading platform. Broker-Dealers from India and across international jurisdictions are expected to participate in large numbers for trading derivatives through Connect.  It will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC.