"Not Hope To Be, We Will": GIFT City CEO To NDTV On Becoming A Global Financial Hub

GIFT City is seeing a rise in interest from global financial companies, with registrations growing from around 100 to nearly 1,250 in the last few years. In an exclusive interview with NDTV's Editor-in-Chief Rahul Kanwal on the show 'Walk The Talk', GIFT City CEO Sanjay Kaul said the financial hub is now at a stage where more companies are looking at it as a serious place to do business.

Kaul said that the regulations for GIFT City's international financial services centre came in 2019 and were notified in 2020. He added that its journey as an international financial centre began after the Covid pandemic.

"When we began, there were just about 100 registrations. Today, it's close to 1,250," he said, adding that around 45 new registrations take place every month.

Kaul acknowledged that GIFT City is still very young compared with established global financial centres such as New York, London, Singapore and Hong Kong. While these centres have been operating for decades or even centuries, GIFT City is only about six years old, he said.

He said GIFT City's immediate role is to act as a gateway for global companies looking to do business with India.

"Global companies have to deal with India. They have to be a part of India's economic growth story. They should be transacting through GIFT City," Kaul said.

The idea also works the other way - Indian companies operating in international markets can use GIFT City for their global business.

Asked if GIFT City will become a truly global financial centre, Kaul said, "Not hope to be, we will." He said a global financial centre should handle transactions from across the world, rather than being focused only on one country.

Kaul also talked about the challenges GIFT City faces before it can compete with the established financial hubs. He said companies looking to set up operations at GIFT City want to know if they can find people with the specialised skills needed for international financial services.

Another concern is the lifestyle available to professionals moving from established financial hubs such as London, New York, Singapore or Dubai, including nightlife, restaurants and entertainment options. Kaul said this is a part of the city's development that is still underway.

He explained that GIFT City first needed physical infrastructure. This was followed by regulatory infrastructure. The next step is making the city more liveable so that professionals are willing to move there.

"Talent moves in only when it is livable," he said.

GIFT City has been planned as a walk-to-work city. Around 11,000 apartments were initially planned, with the number expected to rise to nearly 20,000. Kaul said food, entertainment and cultural activities are also being developed, with around 10 to 12 food and beverage outlets expected to open by the end of this year, he said.

The lifestyle issue also includes Gujarat's status as a dry state. Kaul said GIFT City has several relaxations within its regulatory framework. He said people who use these facilities are satisfied.

Kaul stated that the comparison for GIFT City is not with other Indian states but with global cities. He added that more lifestyle options are being developed to address this gap.

In addition to this, GIFT City is also looking to become a major centre for aircraft leasing. Kaul said aircraft leasing regulations were already in place but required changes to address concerns from bankers.

Indian airlines have more than 2,000 aircraft in their order books that will have to be leased. So far, around 300 to 320 aircraft have been leased through GIFT City, and Kaul said the business is picking up strongly after the regulatory changes. International bonds are also increasingly using GIFT City as a hub, he said.

Asked what more he would like from Finance Minister Nirmala Sitharaman and the central government, Kaul said the government is already doing what is needed. He said the policies introduced by the Centre are helping GIFT City grow. The government's aim, he said, is to make GIFT City one of the world's leading international financial services centres.

Some other states are also considering setting up international financial centres. Kaul said he does not see this as an immediate threat. He acknowledged that cities such as Mumbai and Hyderabad have certain advantages that GIFT City does not currently have. But he said GIFT City remains India's international financial services centre.