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GIFT City is emerging as a preferred gateway for global financial institutions looking to access Indian markets and establish a base for Asia-Pacific operations. At the World Economic Forum in Davos, GIFT City MD and Group CEO Sanjay Kaul highlighted rising global interest driven by India's strong economic growth, stable governance, and regulatory framework aligned with international standards. He said global players see GIFT City as a structured entry route into India and, over time, as a centre for conducting international transactions within Indian jurisdiction.
India's international financial services centre, GIFT City, is drawing growing interest from global financial institutions as a structured entry point into Indian markets and a base for Asia-Pacific operations. Speaking on the sidelines of the World Economic Forum in Davos, GIFT City Managing Director and Group CEO Sanjay Kaul said international players increasingly view the centre as a strategic platform aligned with India's expanding economic role. Advertisement
During the annual global meeting, Kaul held more than 40 bilateral discussions along with several roundtable interactions, using the opportunity to highlight the presence of a fully developed smart city and international financial services centre in India. He said global stakeholders need greater awareness of the scale and readiness of GIFT City as India positions itself as a hub for cross-border financial activity.
Kaul noted that India's fast-growing economy has strengthened the case for developing a robust global-facing financial ecosystem within the country. According to him, GIFT City has been designed to support this objective through a combination of macroeconomic and microeconomic stability, along with predictable and stable governance. He emphasised that a strong financial system requires seamless engagement between India and global markets, a role GIFT City aims to fulfil.
He pointed out that interest from overseas institutions has risen sharply in a short period. Global firms are exploring GIFT City not only to tap into India's large and expanding market but also to use it as a regulated pathway for conducting financial transactions within India's framework. The centre is being positioned as an access route rather than a standalone offshore alternative.
Kaul added that global players also see value in using GIFT City as a regional base to serve Asia-Pacific markets, given India's geographic and economic positioning. Over the longer term, the vision is for GIFT City to evolve into a location where international transactions are conducted within Indian jurisdiction, supported by regulations comparable with leading global financial centres.
When asked about the key reasons global institutions should choose GIFT City, Kaul highlighted policy stability and political governance as primary factors. He also underscored India's sustained economic growth as a major attraction, noting that global firms are keen to participate in the country's growth trajectory rather than remain on the sidelines.
Source PTI
FAQ
Q1. Why is GIFT City attracting growing interest from global financial institutions?
GIFT City is increasingly being viewed as a structured and regulated gateway into India's financial markets. Global institutions are attracted by India's strong economic growth, predictable governance, and a regulatory framework aligned with international standards. Rather than operating through fragmented arrangements, firms see GIFT City as a single, organised platform that allows them to engage with Indian markets while remaining compliant with global financial norms.
Q2. What role did the World Economic Forum in Davos play in promoting GIFT City?
The World Economic Forum provided a global platform for direct engagement with international stakeholders. During the event, GIFT City's leadership held extensive bilateral meetings and roundtable discussions to raise awareness about the city's readiness as an international financial services centre. These interactions helped position GIFT City as a fully developed smart city with operational financial infrastructure, rather than a future or conceptual project.
Q3. How does GIFT City fit into India's broader financial and economic strategy?
GIFT City is designed to strengthen India's global-facing financial ecosystem by enabling seamless interaction between domestic and international markets. As India's economy expands, the need for a sophisticated financial hub that can handle cross-border transactions within Indian jurisdiction has become more important. GIFT City supports this objective by offering macroeconomic stability, micro-level regulatory clarity, and a governance framework that global firms find familiar and reliable.
Q4. Why do global firms see GIFT City as more than just an offshore alternative?
Unlike traditional offshore financial centres, GIFT City is positioned as an access route into India rather than a detached financial enclave. Global firms view it as a regulated pathway that allows them to conduct international transactions while remaining within India's legal and regulatory framework. Over time, the vision is for GIFT City to host a significant share of international financial activity linked to India, reducing reliance on external jurisdictions.
Q5. What makes GIFT City attractive as a base for Asia-Pacific operations?
Global institutions see strategic value in using GIFT City as a regional hub due to India's geographic location, economic scale, and growing influence in Asia-Pacific markets. Policy stability, political governance, and sustained economic growth were highlighted as key factors driving this interest. Firms are keen to establish a presence that allows them to participate directly in India's growth story while serving wider regional markets from a single, well-regulated location.
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