Transactions in banking at GIFT IFSC reach USD 508 billion by July 2023

By Consultants Review Team Wednesday, 23 August 2023

TheThe GIFT International Financial Services Centre's (IFSC) total banking transactions up to July 2023 were USD 508 billion. Dipesh Shah, the executive director of GIFT IFSC, stated that as of July 2023, the overall banking asset size at GIFT IFSC was USD 41.20 billion, and the total value of derivative transactions booked by banks was USD 632 billion. 25 aircraft and shipping companies were among the over 545 IFSCA registered organisations at GIFT IFSC as of July 2023, and the IFSC international stock exchange recorded a monthly turnover of USD 60.33 billion in that month. Total commitments made to alternative investment funds till July 2023 was at USD 17.8 billion, he said.

Shah said that as of date, over 5,000 employees worked at GIFT IFSC zone, and a proposal was received from a single company interested to employ 5,000 people in its GIFT IFSC unit. "These are the types of proposals we are discussing in terms of financial center growth in coming years," he said while sharing a presentation before the representatives of the PHD. Chamber of Commerce and Industry who were here to explore the possibility of setting up business in GIFT City. As per IFSCA annual report 2022-23, as on March 31, 2023, a total of 20 IFSC Banking Units were operational at GIFT IFSC. Two more IBUs, which received licenses before March 31, 2023, are expected to commence operations during FY 2023‐24.

GIFT IFSC aspires to become India's gateway for inbound and outbound requirements of international financial services. The government of India operationalized IFSC at GIFT Multi Services SEZ in April 2015, and the Union Budget 2016 provided it with a competitive tax regime. "Today you will realize that even if you are a manufacturing company, it is still possible for you to be present in GIFT City to set up your global treasury operations," said Sandip Shah, Head IFSC Department, GIFT City. He said the GIFT City is being expanded to another 3000 acres, and the state government made an announcement to this effect in November last year.

"Probably the entire master planning of this 3000 acres will also be done on the lines of GIFT City and work has already begun, and the first draft plan would be submitted by the end of this calendar year," he said. Executive Director of PHD Chamber of Commerce and Industry, Ranjeet Mehta, said that a total of 150 representatives of the chamber from across the country were at GIFT City to explore collaboration. "There are around 150 representatives of PHD Chamber from financial services, traditional industries, fintech, and manufacturing -- people from all sectors have come here as they have curiosity as to what GIFT City is offering to them," he said. He said the chamber will sign an MoU with the GIFT City on how to create awareness and collaboration with 150,000 companies associated with PHD Chamber and how they can take an advance of what the GIFT City has to offer.

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