India@FDI Magazine

It is one of the largest projects
in India with a size of around
$16 billion. Considering
the state government is
in Gujarat through GIFT City,
it provides great opportunity
During our recent visit we entered into a formal
Memorandum of Cooperation (MoC), which provides for joint
promotion of both the financial centre and providing easy
access to institutions based in DIFC and ADGM to set up base
in GIFT IFSC and vice-versa.
The cooperation also covers sharing of information,
training and related activities.
Is Gujarat seeking increased investments from the UAE
especially at GIFT?
GIFT City provides multiple opportunities for UAE-based
institutions in the field of real estate, entertainment, retail,
hotel, financial services and infrastructure funding.
It is one of the largest projects in India with a size of
around $16 billion. Considering the state government is
promoting the services sector in Gujarat through GIFT City,
it provides great opportunity for UAE-based institutions to
participate in GIFT City.
What has been the response from the UAE so far in
terms of interests and actual investments at the centre?
With the completion of state-of-the-art infrastructure in
GIFT City the investment is expected to increase from the
UAE as more and more projects are now being offered for
participation.
ETA Dubai has already done a District Cooling plant and
ANC Dubai has done the second tallest tower in Gujarat.
With the signing of cooperation with the Dubai Multi
Commodity Centre, it is expected that many intermediaries
based in DMCC will participate in GIFT IFSC.
Could you briefly tell us about the total investments
that GIFT has attracted from investors, both Indian and
international?
GIFT City has already attracted more than $1.7 billion of
committed investment from various financial institutions and
developers to be made over the next few years.
What about interests from the financial services sector
in the project? Has it been as expected?
GIFT City is India’s first International Financial Services Centre
(IFSC) and has attracted leading financial institutions from the
banking, insurance and capital markets space.
Nine Indian banks have set up their IFSC Banking Units
(IBUs) in GIFT SEZ and done business transactions in foreign
currency worth $2 billion. These include State Bank of India,
YES Bank, ICICI Bank, IDBI Bank, Kotak Bank, Federal Bank,
Bank of Baroda, RBL Bank and IndusInd Bank.
Prime Minister Narendra Modi recently inaugurated India’s
first international stock exchange, the India International
Exchange (INX) set up by Bombay Stock Exchange (BSE). The
international exchange of National Stock Exchange (NSE) is
likely to begin operations in April 2017.
New India Assurance Co Ltd and GIC Re, India’s premier
multinational insurance companies, have opened IFSC
Insurance Offices (IIOs) at GIFT IFSC.
In the domestic area, leading institutions like Bank of
Baroda, Syndicate Bank and Bank of India have started
operations.
India’s premier commodity exchange, Multi Commodity
Exchange of India (MCX) has also set up its office in GIFT.
We have also attracted global IT/ITeS companies like
Oracle, Maxim Integrated and Befree.
What are the key learnings for GIFT from DIFC Dubai as
a global financial centre?
The key learning covers setting up of a separate regulator
for the International Financial Centre, a separate
dispute mechanism system and enabling business
regulation for IFC.
45