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GIFT IFSC is strengthening its role as an international financial and banking centre, with its ability to mobilise overseas capital expected to become increasingly important as India works towards its Viksit Bharat 2047 goal, Sanjay Kaul, Managing Director and Group CEO of GIFT City, said in an exclusive interview with ANI.
The financial centre has seen significant overseas fund mobilisation in recent weeks, with banks raising around USD 54.2 billion through GIFT IFSC after the RBI opened a window for India to raise capital overseas. Around USD 27 billion of the total was raised between August 14 and August 31, Kaul said in an interview. Kaul said the significance of the fundraising went beyond the headline number, pointing to the growing role of GIFT IFSC as a platform through which global financial intermediation can take place. The first phase of GIFT IFSCs development involved establishing the regulatory framework, bringing more institutions into the ecosystem and creating market depth. The focus is now shifting towards establishing its position globally as a centre for financial intermediation, he said. This could assume greater importance as Indias financing requirements increase. Kaul estimated that the Viksit Bharat 2047 vision would require around USD 1015 trillion in funding, making it necessary for the country to tap global sources of capital alongside its domestic financial system. Unless you have channels, platforms, from where those funds can be mobilised for purposes within the country, it will be a challenge to raise those funds, Kaul said. He said GIFT IFSC provides such a global platform, allowing international savings to be channelled into India. According to Kaul, this gives the Indian economy an additional financial option beyond its established domestic markets. The recent mobilisation of funds also reflects growing confidence in the GIFT IFSC ecosystem, he said, attributing this to its regulatory framework, stable governance and continuity in policies. Global markets now trust the ecosystem in GIFT IFSC, Kaul said. Kaul said GIFT IFSC was becoming an important part of Indias financial infrastructure and would play a larger role in raising funds from global sources. Over time, he said, the centres ambition should extend beyond serving Indias funding requirements to facilitating global financial flows. Financial intermediation for the globe is what GIFT IFSC could move towards in the near future, Kaul said. (ANI)
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