PM Modi likely to launch JPMorgan, MUFG operations in GIFT City

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PM Modi likely to launch JPMorgan, MUFG operations in GIFT City

Three people familiar with the matter said that the Gift City in Gujarat is poised to become the Indian hub for global finance, as Prime Minister Narendra Modi is likely to launch the operations of JPMorgan Chase Deutsche Bank and Japan's MUFG at the International Financial Services Centre IFSC on July 15. These institutions are some of the biggest in the global lending and derivatives markets that run into trillions of dollars. Finance minister Nirmala Sitharaman is also expected to attend the event. The schedule is subject to change depending on the other engagements of the PM, the people said, speaking on condition of anonymity. A 10-member delegation consisting top officials from the International Financial Services Centre Authority IFSCA and foreign banks opening their doors in GIFT City is currently in London wooing international investors, the people said. One person told ET.The Gift City, JPMorgan, Deutsche Bank and the IFSCA, which regulates businesses in the special economic zone, is expected to meet as many as 150 investors in London. An MUFG spokeswoman said the financial services company was on track to open a 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 launch a number of 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. The GIFT City has increased business volumes as a result of the pandemic. Between April 2015 and September 2020, there were approximately 129 entities that opened their doors. More than 180 entities have set up their base in the GIFT City since then, according to people in the know. The IFSCA expects to receive at least 400 applications in the year 2023. The people said that it had received about 50 applications by June-end. One person said that the IFSCA has shortlisted about five applications from renowned fintechs. The GIFT City authorities pay special attention to reinsurance and aircraft leasing, two important aspects of business other than banking. The PM is expected to meet industry representatives during his visit to the Gift City. More than 50 alternative investment funds, both offshore and onshore, are waiting to enter the GIFT City, said IFSCA chairman Injeti Srinivas.