Gift City Emerging As Dominant Gateway For India's Financial Sector, Reveals Economic Survey

New Delhi: The Economic Survey, presented by Union Finance Minister Nirmala Sitharaman, underlined that the GIFT City International Financial Services Centre (IFSC) emerging as a groundbreaking financial jurisdiction within India. Established with the dual aims of onshoring India-centric international financial services and acting as a gateway for global capital flows, GIFT City IFSC is positioned to significantly impact the financial landscape.

The survey reveals that the banking sector in GIFT City is evolving rapidly, featuring a mix of foreign and domestic banks. These institutions primarily address the foreign currency borrowing needs of Indian corporates and public sector enterprises through mechanisms like external commercial borrowing and trade finance.

Notably, transactions that were once processed through international financial centres such as Singapore, Dubai, and Hong Kong are now being conducted through GIFT IFSC. This shift highlights the centre's growing importance in global finance.

By March 2024, IFSC Banking Units (IBUs) have accumulated assets exceeding $60 billion, and their total transaction volume has surpassed $795 billion.

About the Economic Survey

The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy. The document also provides an overview of the short-to-medium-term prospects of the economy.

The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser. The first Economic Survey came into existence in 1950-51 when it used to be a part of the budget documents.

In the 1960s, it was separated from the Union Budget and tabled a day before the presentation of the Budget. The Union Budget for 2024-25 will be presented by Sitharaman on Tuesday