In a momentous declaration, Prime Minister Narendra Modi has unveiled a transformative vision for Gujarat’s financial hub, GIFT City, transcending its established fin-tech prowess to position it as a global epicentre for climate financing. This strategic recalibration seamlessly aligns with India’s net-zero emissions goal by 2070, necessitating a monumental $10 trillion investment, with a substantial portion envisioned to be secured through global sustainable finance. During his virtual inaugural speech at the Infinity Forum 2.0, Mr. Modi emphatically underscored the pivotal role of the International Financial Services Centres Authority (IFSCA) in propelling GIFT City towards becoming a nexus for sustainable finance. The Prime Minister’s emphasis on GIFT IFSC as an influential channel for green capital underscores its potential not only to facilitate but spearhead India’s ambitious transition to a low-carbon economy. Of particular significance is the Prime Minister’s call for the development of innovative financial products such as green bonds and sustainable bonds.

This deliberate effort signals a commitment to establishing intricate market mechanisms for green credit. This strategic move not only positions GIFT City as a financial hub but as a pioneering force, attracting environmentally responsible investments and capitalising on the global momentum favouring sustainable finance. Furthermore, Mr. Modi strategically spotlighted opportunities within the aviation and shipping sectors. The exponential growth in India’s air travel and aircraft fleet uniquely positions GIFT City as a hub for aircraft lessors. The city’s offerings, complemented by IFSCA’s ship leasing framework, align seamlessly with the rising trend of using water routes for transporting goods. This presents a strategic opportunity for GIFT City to capitalise on the surging demand in the maritime transportation sector. This holistic approach, integrating sustainable finance, fin-tech, and strategic positioning in aviation and shipping, paints a comprehensive picture of GIFT City’s evolution into a dynamic, multifaceted financial hub. Mr. Modi’s call for inputs from experienced individuals underscores a collaborative ethos, acknowledging the paramount importance of industry expertise in shaping GIFT City’s trajectory. GIFT-IFSC, already a tax-neutral financial centre, aspires to rival established hubs like Singapore by offering fiscal incentives and a more relaxed regulatory environment. It is a strategic positioning that underscores India’s determination to carve out a distinct niche in the global financial landscape. However, such aspirations are not without challenges. They raise questions about the balance between environmental goals and economic viability. Can GIFT City maintain its competitiveness while adhering to the principles of sustainability? Striking this delicate balance will be crucial, requiring a nuanced approach to regulation and incentives to ensure that businesses find it lucrative to participate in the green transition. All said, GIFT City is a strategic initiative that not only mirrors global trends but also stands resolute in its alignment with sustainability imperatives, emerging as a beacon in India’s financial horizon. Mr. Modi’s forwardthinking strategy positions GIFT City as a pioneer, not just in economic growth, but in shaping a resilient, environmentally conscious financial future.