GIFT City:
Stressing that Gujarat International Finance Tec-City or GIFT City is growing rapidly, Sandeep Batra, who heads international banking for HSBC, believes it is on its way to becoming a global investment hub. “It started as a place for corporates; now wealth managers, individuals, private banking, a lot is happening at GIFT,” Batra said, speaking with NDTV Editor-in-Chief Rahul Kanwal in Walk The Talk.
He was asked what he, as somebody who has operated in different regions, thought of GIFT City. “It’s still early days, but it’s been a rapid growth,” Batra said. “We were the first to get an IFSC licence, and that’s only 4-5 years back. In that time, we see dramatic growth in the GIFT ecosystem. Now there are 1,200-plus players operating at GIFT, multiple options are already there.”
On which businesses are growing the fastest, and where GIFT City lags currently as compared to places like Dubai, Hong Kong or Singapore, he said, “The other centres have been there for a long period of time, and we’ve seen development over the years as well… [GIFT City] has quickly become the factory of the FCNRB programme.” He was referring to Foreign Currency Non-Resident Bank accounts, a fixed deposit scheme by the Reserve Bank of India (RBI) for non-resident Indians (NRIs), persons of Indian origin (PIOs), and Overseas Citizens of India (OCI) to maintain term deposits in freely convertible foreign currencies.
Batra said there have also been other “interesting” transactions, “from aircraft leasing to vessel financing, to trade moving here, to treasury centres in India moving to GIFT”. He added, “A lot of digital capabilities are coming up. Rules are being evolved with time.”
But do people look at GIFT City, Prime Minister Narendra Modi’s pet project, as an investment opportunity, a port, or as a destination, he was asked. “Acceptance and knowledge are spreading gradually,” he said. “But do you know, individuals, both NRIs and resident Indians, can already open accounts on multiple currencies sitting wherever they are! They’re also able to invest globally. If you’re a resident Indian, you can invest in a variety of products around the world. If you’re an NRI, you can take a slice of the world, or you can take any slice of India. And I think we are heading in the right direction.”
Speaking on which financial instruments in GIFT City people should know about, he spoke of the basics: “Start with getting a multiple-currency account. Soon, you may be able to have a single debit card that will have 15-20 currencies on it. Let’s say you’re going to travel: Why do you want to pay a markup on money that you spend? You should be able to spend directly from your bank account, and the bank account should ideally be able to recognise the currency.”
He painted another scenario: “Let’s say a child is going to study overseas. You should be able to open an account for your child and for yourself, and be able to remit money at the click of a button.” On investing, he said “any asset class anywhere in the world” is available at GIFT City.
He was asked if participation was currently restricted to Indians and people of Indian origin largely, or if it is genuinely becoming international.
“Clearly, this is India’s international financial centre at this point in time. I think the affinity is a lot more Indian. I think it is a matter of time; this will go beyond,” Batra replied.
On life inside the hub, he said, “The GIFT City Club is run by Radisson… There are multiple new hotels coming up. Social infrastructure is coming up. There is, interestingly, alcohol at GIFT city, which is not there in Gujarat (at large). The government has already made quite an exception.”
He noted that HSBC recently shifted a senior officer to GIFT City. “She’s moved from Mumbai and has actually chosen to come and stay here. I was talking to her about her life, and she said life is indeed so much better here. ‘I get to work in five minutes. I can walk, I can cycle, I can do things. There is fitness, there is social activity.'”
