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Key Points

Gujarat's GIFT City is rapidly emerging as a strategic destination for global and regional treasury centers according to a recent EY report. The financial hub offers multinational corporations attractive infrastructure, lower operational costs, and supportive regulatory environments. With India positioning itself as a competitive financial ecosystem, GIFT City is challenging traditional global financial centers. The development signals a significant shift in how companies approach international financial operations and commodity trading.

Key Points: GIFT City Emerges as Global Treasury Hub in EY Report

  • Gujarat's financial ecosystem attracting global corporate treasury centers
  • IFSCA creating strategic environment for international finance
  • Multinational corporations exploring cost-effective trading solutions
  • Emerging location challenging traditional financial hubs
2 min read

Gujarat's GIFT City increasingly gaining traction for setting up treasury, commodity trading centres: EY

Gujarat's GIFT City gains international recognition for strategic treasury and commodity trading centers, offering competitive advantages for multinational corporations.

"GIFT City has the potential to be ranked among the world's leading financial hubs - EY Report"

New Delhi, June 8

GIFT City in Gujarat is increasingly gaining traction for setting up Global or Regional Treasury and Commodity Trading Centres (GRCTCs), due to their lower costs and expanding incentives, as per a report by global accounting firm EY.

The Indian economy is poised at a strategic inflection point, where the intent of the government and the regulators is aligned to create a strategic force in the development of the financial market ecosystem.

"GIFT City and International Financial Services Centres Authority (IFSCA) are pivotal in positioning India as a front-runner and the destination of choice for setting up Global or Regional Treasury and Commodity Trading Centres (GRCTCs)," said Hemal Shah, Partner, Financial Services Risk Management, EY India.

Amid growing global volatility, multinational corporations are re-evaluating how they manage liquidity, financial risk and commodity trading.

Global / Regional Corporate Treasury Centres (GRCTCs) are emerging as a strategic solution to these challenges, EY said in the report.

"Acting as internal hubs for financing and commodity-related activities, GRCTCs enable companies to streamline operations, enhance transparency, and optimize financial and trading decisions across jurisdictions," the executive summary of the report read.

Global benchmarks such as Singapore, Hong Kong, Dubai and European hubs have long offered attractive environments for GRCTC setups.

"However, emerging locations like Shanghai, Kuala Lumpur, Bangkok--and notably, India's Gujarat International Finance TecCity (GIFT City)--are increasingly gaining traction due to their lower costs and expanding incentives," the EY report read.

"GIFT City has the potential to be ranked among the world's leading financial hubs for organizations looking to establish GRCTCs. Its infrastructure promotes a business-friendly environment that accelerates organization's growth, international finance and foreign investment, signaling a promising future."

With supportive regulations, growing infrastructure, and increasing industry interest, India's GIFT City is poised to join the ranks of established GRCTC hubs--offering multinational corporations an attractive new base for global treasury and commodity trading operations, it added.

According to EY, GRCTC can be defined as an internal banking and commodity trading hub for multinational companies with operations across geographies. Its primary goal is to centralize fund management, facilitate commodity trades, manage trading costs, and enhance financial resource utilization across the group.

- ANI

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Reader Comments

Here are 6 diverse Indian perspective comments for the GIFT City article:
R
Rahul K.
This is fantastic news! GIFT City becoming a global financial hub will create so many high-quality jobs and boost our economy. Gujarat continues to lead in infrastructure development. More power to PM Modi's vision of making India a $5 trillion economy! 🇮🇳
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Priya M.
While I appreciate the progress, I hope the government ensures this development benefits all sections of society. The focus should be on sustainable growth that doesn't just serve multinational corporations but also creates opportunities for local businesses and startups.
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Amit S.
As someone working in finance, this is game-changing! GIFT City's tax benefits and regulatory framework are attracting global players. Just last month, my company started exploring shifting some operations there. The 24x7 operational model is particularly attractive for global treasury functions.
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Neha T.
I visited GIFT City last year - the infrastructure is world class! But I wonder if we're developing other cities equally? Mumbai has been our financial capital for decades. Hope this doesn't create regional imbalances in development. #balancedgrowth
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Vikram J.
Competing with Singapore and Dubai is ambitious but achievable if we maintain policy consistency. The key will be simplifying compliance procedures further. Bureaucratic red tape has been the bane of Indian financial sector for too long. GIFT City must break this pattern.
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Sanjana P.
Great initiative but what about environmental concerns? Such massive developments often come at ecological costs. Hope they've planned proper green spaces and sustainable architecture. We can't sacrifice environment for economic growth - both must go hand in hand. 🌱

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