GIFT City should become the natural destination for India-related offshore financial business: MD Sanjay Kaul
India is betting that GIFT City will evolve into the country's answer to global financial hubs, with the aim of making it the natural destination for India-related financial business currently conducted offshore. Speaking to The New Indian Express on the sidelines of the CII GCC Business Summit in New Delhi, GIFT City Managing Director and Group CEO Sanjay Kaul said the focus is on steadily building the regulatory credibility, infrastructure and ecosystem needed to become the preferred base for global financial businesses. Edited Excerpts:
Looking back at the 2021 Finance Act measures for GIFT City, has the execution lived up to the hype, or is it taking too long? What is the biggest policy hurdle the government still needs to clear?
I think it's important to step back and look at the larger objective. GIFT City isn't just another business district; it's India's strategic effort to create a globally competitive international financial centre. Every major financial centre—whether Singapore, Dubai or London—has evolved over decades. GIFT IFSC, in its current form, is barely six years old.
So I don't see policy issues as hurdles. I see them as part of the natural evolution of a new ecosystem. Regulators create the framework, markets respond, businesses provide feedback, and the framework keeps improving. That's exactly what we're seeing today.
If anything, we've moved remarkably fast. More importantly, the direction is very clear. As India's economy grows, India-related financial activity should increasingly happen from India rather than being intermediated overseas. Every policy refinement is helping us move towards that objective.
There has been criticism that GIFT City may fail to emulate Singapore. Some reports suggest India is offering incentives that global investors are not looking for. Where did we lag behind?
I actually see comparisons with Singapore as a compliment because they reflect the ambition people have for GIFT City. Our regulatory and tax framework is already globally competitive, and we will continue refining it as markets evolve—that's true for every successful financial centre.
What often gets missed is that global institutions don't choose locations based only on regulation or taxation. They look at the entire ecosystem—world-class infrastructure, talent, connectivity, quality of life and ease of doing business. That's the ecosystem we're creating in GIFT City, and I believe that's what will differentiate us over the long term.
What have been the biggest operational bottlenecks for GIFT City, and how does the government plan to address them in the next phase of development?
Our biggest task today is building global confidence. Established financial centres have decades of history behind them. We are building that credibility institution by institution. Every new global player that sets up operations and later expands validates the ecosystem for the next investor.
At the same time, we're creating an integrated city, not just a financial district. Housing, schools, hotels, mobility, social infrastructure and public spaces all matter because global talent expects a complete ecosystem. That's where our focus is.
Could you share the investment milestones or targets you're aiming for? Following the new aviation policies, have any aircraft leasing or aviation firms shown concrete interest?
Our objective is much bigger than attracting individual companies. We want India-related financial business to come back to India. Whether it's aircraft leasing, fund management, treasury operations, insurance or external commercial borrowings, if that business is currently happening offshore, GIFT City should become the natural destination.
Aircraft leasing is a perfect example. India has one of the world's largest aircraft order books. There is no reason why a significant portion of the financing and leasing of those aircraft should happen outside India. That's the opportunity we're creating.
GIFT City was envisioned to generate five lakh direct jobs upon completion. How many jobs have been created so far?
Today, around 26,000 people work in GIFT City, but that's only the beginning. A significant amount of commercial space is under construction. As these projects become operational, employment will grow substantially. The infrastructure being built today has the capacity to support well over one lakh additional jobs. The real story isn't today's number; it's the growth pipeline that's already visible.
Looking ahead, what is the five-year roadmap for GIFT City in terms of policy interventions, fiscal support and regulatory reforms?
Over the next five years, success won't simply be measured by the number of institutions or buildings. Success will be when global investors instinctively think of GIFT City whenever they think about India-related financial business.
Our aspiration is for GIFT City to become India's gateway to global finance and, over time, a preferred international financial centre serving clients across markets. The encouraging part is that institutions which came with modest plans are already expanding faster than expected. That tells us the ecosystem is working and gives us confidence about the next phase of growth.
