The iconic Gujarat International Finance Tec-City (GIFT City) has been attracting the attention of players from the finance world as many of them are investing heavily in the project.
Notably, GIFT City is aiming to become India’s first international financial hub, with over 500 companies already operating there.
According to the Global Financial Centres Index 2023, GIFT City is now ranked at number 67.
“GIFT has reached an inflection point where the envisioned goals can now be achieved. All we see from here is an upward trajectory with sustained growth,” said Tapan Ray, GIFT City managing director.
The creation of the International Financial Services Centres Authority (IFSCA) as a unified regulator in 2020 marks a pivotal milestone.
From October 1, 2020, IFSCA assumed the power of four domestic sector regulators, namely RBI, SEBI, IRDAI & PFRDAI in so far as the development and regulation of IFSCs in India were concerned.
The state government has engaged in discussions with several global financial sector companies during the Vibrant Gujarat Global Summit.
Paytm announced investment of Rs 100 crore
On Wednesday, Paytm announced an investment of Rs 100 crore in Gujarat International Finance Tec-City (GIFT City) to build a global financial ecosystem.
The company will make the investment over a period of time and will seek requisite approvals for the same.
Paytm will also set up a development centre in GIFT City to build the above solutions and provide a technology backbone. This centre will create jobs and house engineers to develop a suite of world-class financial products and services.
Speaking on the development, Founder and CEO, Vijay Shekhar Sharma, said, “GIFT City is set to become a global financial hub, further putting India on the world map for innovation. The strategic investment in GIFT City represents a pivotal step towards building an Artificial Intelligence-driven cross-border remittance and payments technology landscape, presenting global opportunities.”
RBI’s nod to PFC to establish finance company
On Tuesday, the Reserve Bank of India (RBI) has given its nod to Power Finance Corporation (PFC) to establish a finance company at the GIFT City.
“PFC’s entry into the IFSC is expected to open up new business opportunities and establish PFC’s global presence,” the company said in an exchange filing.
Notably, earlier, PFC inked an initial pact with the Gujarat government to provide comprehensive financial backing for the state’s generation, transmission, and distribution projects.
Infibeam Avenues to invest Rs 2,000 crore
Fintech firm Infibeam Avenues on Tuesday said it has inked a pact with the Gujarat government to invest Rs 2,000 crore in the state by 2030.
Infibeam said the proposed investment will go into its artificial intelligence (AI) hub for developing technology for payments and platforms specifically tailored for retailers.
“With this MoU, we aim to fortify our partnership with the Gujarat government, opening up avenues for growth for retailers across the country,” Infibeam Avenues Chairman and Managing Director Vishal Mehta said in a statement.
To become one of world’s premier international financial centres: CM
Gujarat Chief Minister Bhupendra Patel has said that Gujarat International Finance Tec (GIFT) City will become one of the world’s premier international financial centres in the coming years. He mentioned plans for significant infrastructure expansion, projecting a land area of around 3,400 acres, and the development of a riverfront featuring international-level retail, recreation, and entertainment zones.
Patel emphasised PM’s vision for GIFT City as a world-class financial, IT, ITeS, and fintech hub catering to India and the global market.
