JP Morgan, Deutsche and MUFG enter to give a big boost to GIFT City


Gift City In Gujarat India is set to get its biggest push ever in becoming the hub for global finance as Prime Minister Narendra Modi likely to formally start operations of JPMorgan Chase, Deutsche Bank And Japan’s MUFG At the International Financial Services Center (IFSC) on July 15, three people familiar with the matter said.

These institutions are the largest of the global debt and derivatives markets that run into trillions of dollars.

Finance Minister Nirmala Sitharaman will also attend the event. But the schedule is subject to change depending on the PM’s other engagements, the people said, speaking on condition of anonymity.

Meanwhile, top officials of the International Financial Services Centers Authority (IFSCA) and a 10-member delegation of foreign banks that have opened shop in GIFT City are currently in London to woo international investors, the people said. “It is expected to meet over 150 investors in London,” a source told ET.

GIFT City, JP Morgan, Deutsche Bank and IFSCA, which also regulates businesses in special economic zones, did not comment. A MUFG spokesperson said the financial services company is “on track to open our branch in the first half of the fiscal year”.

New Development Bank, a supranational lender, will also start operations.

The Prime Minister may also inaugurate some dedicated platforms that will attract global investors. These include ‘Agritech’ to help local farmers find international buyers for their produce and a fintech platform for lenders to digitally process loan applications with limited human interventions.

With a sharp increase in business volume, GIFT City is rapidly gaining traction post the pandemic.

Between April 2015 and September 2020, an estimated 129 entities opened shop there. According to the knowledgeable people, since then more than 180 organizations have established their base in GIFT City.

IFSCA is now expecting at least 400 applications in the current financial year 2023. People said it has received around 50 applications till the end of June.

“In fact, IFSCA has shortlisted around five applications from renowned fintechs,” said one of the people.

Reinsurance and aircraft leasing are two important aspects of businesses other than banking where GIFT City executives are paying special attention.

The people involved in the program said that the Prime Minister is also expected to meet industry representatives during his visit to GIFT City. IFSCA President Injeti Srinivas said more than 50 alternative investment funds, both onshore and offshore, are waiting to enter GIFT City.


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