JPMorgan, Deutsche and MUFG’s entry to give Gift City a big boost

The Gift City in Gujarat is set to get the biggest push yet in becoming the Indian hub for global finance, as Prime Minister Narendra Modi is likely to formally launch the operations of JPMorgan Chase, Deutsche Bank and Japan’s MUFG at the International Financial Services Centre (IFSC) on July 15, said three people familiar with the matter.

These institutions are some of the biggest in the global loans and derivatives markets that run into trillions of dollars.

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

Meanwhile, a 10-member delegation comprising top officials from the International Financial Services Centre Authority (IFSCA) and foreign banks opening shop in the GIFT City is currently in London wooing international investors, the people said. “It is expected to meet as many as 150 investors in London,” one of the people told ET.

The Gift City, JPMorgan, Deutsche Bank and the IFSCA that also regulates businesses in the special economic zone, did not comment. An MUFG spokesperson said the financial services company was “on track to open our branch in the first half of the financial year”.

The New Development Bank, a supranational lender, will also be launching operations.

The Prime Minister may also inaugurate a few dedicated platforms which 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.

The GIFT City is fast gaining traction after the pandemic, with a sharp increase in business volumes.

Between April 2015 and September 2020, an estimated 129 entities opened shop there. Since then, more than 180 entities have set up their base at the GIFT City, according to people in the know.

The IFSCA is now expecting at least 400 applications in the ongoing fiscal 2023. It has already received about 50 applications till June-end, the people said.

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

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

During his visit to the Gift City, the PM is also expected to meet industry representatives, said people involved in the programmes. More than 50 alternative investment funds, both onshore and offshore, are waiting to enter the GIFT City, said IFSCA chairman Injeti Srinivas.



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