GIFT City: Green Credits Platform & Fintech Hub for India's Growth

Gandhinagar, Jan 11 (PTI) Finance Minister Nirmala Sitharaman on Thursday said the GIFT City should develop a platform for trading 'green credits' and also build a diverse fintech laboratory to help India become a USD 30 trillion economy by 2047.

She said the GIFT City, poised to be the "gateway for financial and investment hub", is designed to provide advantages to India's entrepreneurs in accessing global finance.

"The much-awaited direct listing of stock in GIFT IFSC was announced earlier. We are going through the process in a systematic manner and I'm confident that it will happen at the earliest. With that Indian companies should be able to access global funds easily being listed in India," she said addressing the seminar 'GIFT City-An Aspiration of Modern India'.

Gujarat International Finance Tec-City (GIFT)-IFSC is being promoted as a tax-neutral enclave for the financial sector.

Listing out the growing presence of operations at International Financial Services Centres (IFSC), Sitharaman said there are now 3 exchanges, including International Bullion Exchange, 25 banks, including 9 foreign banks, 26 aircraft lessors, 80 fund managers, 50 professional service providers and 40 fintech entities in the GIFT City.

India should aim to become a manufacturing hub for shipping and there are 8 ship leasing entities working in IFSC that would enable access to global finance, she said.

"The Government of India has taken a clear position that we will strengthen shipbuilding activities in India," she said, adding that the existing capacity of shipyards can be used to make India a good manufacturing hub for shipping lines.

With regard to fintech, Sitharaman said in India, the fintech adoption rate is 87 per cent as against the global average of 64 per cent.

She said the GIFT City should aim to build a diverse fintech laboratory for the world and address the needs of both Indian and foreign firms.

The GIFT City should look at being a platform for green credits. It should also aim to build diverse fintech laboratory to achieve the target of India's economy becoming USD 30 trillion by 2047, Sitharaman said.

Further, the minister said India has a funding gap of USD 10.1 trillion to meet its net zero commitment by 2070 and GIFT City could help in bridging that gap.

"I would think the authorities here should work on getting a platform ready so that green credits can be sold by people who are planting trees.

"Miyawaki forests are coming up all over the country, some credits for that and any other practices that you do in afforestation or activities which are full of the green certification, meaning using renewable energy, solid waste management, and so on, should be able to first come here to say I have credits, which I wouldn't want to sit, let it be traded. This place should be the place for getting those credits bought and sold," Sitharaman said.

The minister said India is now driving the growth engine of the world and it can become the bridge between the developed Western world and the Global South.

As India continues onwards to the path of financial prominence on the global stage, the people of India want to become innovators and entrepreneurs, and GIFT City can help in realising these aspirations, she added.