The purpose of GIFT IFSC is not to compete with other jurisdictions like Dubai, Singapore, or Hong Kong but to rather ensure that investors have an alternative option, said Dipesh Shah, executive director of IFSCA.
Shah added that institutions are now coming to GIFT IFSC rather than going to Dubai, Singapore, Hong Kong, or London and setting up international financial services—not only for India but also for overseas markets—through very efficient tax structures available at GIFT IFSC, Shah said.
Shah was speaking at the Global Securities Markets Conclave held in GIFT City in Gujarat on January 16.
Talking about how the capital markets segment has grown in GIFT IFSC, Shah attributed it to a strong market ecosystem which includes stock exchanges, brokerages, and AIFs.
The total debt listing on exchanges in GIFT IFSC grew to $63.6 billion in December 2024 as compared to $23 billion in September 2020. While monthly turnover on GIFT IFSC exchanges grew to $85 billion in December 2024 as compared to $21.7 billion in September 2020.
Shah also added that segments like insurance, banking, and AIFs are turning out to be very popular for Non-Resident Indians (NRIs). "The government has been relaxing norms and providing a tax-friendly regime for NRIs, and enabling international business to be conducted much more efficiently," Shah added.
The number of insurance entities in GIFT IFSC has grown to 39 in December 2024 as compared to 17 in September 2020. While the number of banks in GIFT IFSC has grown to 28 in December 2024 as compared to 14 in September 2020.
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