A new India is taking shape with a sharp focus on execution, says Agrawal
India will require a cumulative net capital inflow of US$11-US$18 trillion to fund its Gross Fixed Capital Formation requirement for 2047, translating to approximately US$750 billion per year.
This huge investment estimate was given by Dr. Dipesh Shah, Executive Director (Development), IFSCA – GIFT City, when he emphasized that the next 10 years will define the India story.
“In terms of its value proposition, it’s still an evolving financial center but is progressing at a good pace. Key reforms such as GST, IBC and the implementation of 4 Labour codes have shown exponential results,” he said at an interactive session organised at PHDCCI 14 Feb.
Currently, India is exporting businesses and jobs outside the country, which underscores the need to establish an International Financial Center within the country. Setting up an IFC provides the advantage of operating outside FEMA and Tax laws, he said.
To address this, Shah said three problem statements were identified.
Firstly, the question of whether something better than Singapore could be created. The solution involves developing a city with superior infrastructure, financial services, and global-level tax laws.
Secondly, the establishment of a smart city based on principles that cater to various needs.
Lastly, creating an ecosystem aligned with international standards to support the functioning of the IFC, he said.
PHDCCI President Sanjeev Agrawal elaborated on the Indian growth story, saying “Our nation has transformed remarkably since the past one decade. The confidence that our business community is beaming with was never seen before.
“A new India is taking shape with a sharp focus on execution. The launch of GIFT City has only added to the sustained momentum. Gift City represents a vision, a testament to India’s ambition to become a global financial powerhouse.”
One of the key pillars of Gift City’s future success lies in its ability to attract global financial institutions and multinational corporations, he noted.
“As more companies establish their presence here, it will create a ripple effect, fostering collaboration, competition, and growth,” believes Agrawal.
“In addition to its economic and technological prowess, Gift City holds immense potential to bring together people from diverse backgrounds, cultures, and perspectives. This diversity will not only enrich the social fabric of Gift City but also foster creativity, innovation, and cross-cultural understanding,” he said.
Noted Hemant Jain, Senior Vice President, PHDCCI, “Recent developments in India’s economy, such as regulatory reforms and infrastructure investments, are creating a conducive environment for the growth of vibrant economic zones like the Gift City.
“The government’s focus on ease of doing business and digitalization are key factors driving investment and innovation in such cities, attracting both domestic and foreign businesses.
“Additionally, initiatives to boost connectivity and promote international trade are further enhancing the potential of Gift City as a global financial hub. These initiatives will go a long way in promoting GIFT City as a preferred investment destination.”
PHDCCI Vice President Rajeev Juneja concluded the session, highlighting that the IFSC is fast emerging as the preferred destination for a growing number of businesses involved in the financial services sector, IT-enabled services, business process outsourcing, among others.
“Prioritizing IFSC-GIFT City as a global financial services hub and addressing tax structures and regulatory frameworks will be crucial considerations for the future. A unified approach to these measures will contribute to a resilient and progressive financial ecosystem.
“We are sure that in times to come, GIFT City will indeed emerge as a preferred investor’s destination. As we embark on this journey together, let us seize the opportunities that lie ahead and build a future that is prosperous, sustainable, and inclusive for all.”
PHDCCI Executive Director Dr. Ranjeet Mehta underscored, “GIFT City is crucial for India’s economic growth.
“It serves as a vital hub for global collaboration and innovation in the financial sector. With GIFT City, India aims to set new standards in financial sector and attract international investment, which will lead to brighter economic future.”
By providing a conducive environment for businesses and investors, it fosters economic growth and job creation, said Dr Mehta.
“With its cutting-edge infrastructure and regulatory framework, GIFT City is poised to drive India’s financial sector forward into the future.” Fiinews.com
