Prime Minister Narendra Modi’s New Project in Gujarat To Rival Singapore And Dubai? Truly Amazing

Finally, India will be competing Singapore, Hong Kong, and Dubai at International Exchange soon. In Gujarat’s finance zone, Prime Minister Narendra Modi will inaugurate an international exchange and is expected to gain some India’s $48 billion in offshore banking activities from Singapore, Dubai and Hong Kong.

PM Modi will be inaugurating the India International Exchange at the bottom of a 16-storey building on Monday, which dominates the finance zone. The exchange would start trading single stock and equity index futures on January 16. Soon, the exchange will also add gold, silver, copper, oil and the rupee, according to Ashishkumar Chauhan, Chief Executive Officer at Bombay Stock Exchange. As per reports, ninety-six brokerage firms have registered in the zone.

“The exchange will reclaim some lost market share to equity futures in Singapore, currency derivatives in Dubai and structured products in Hong Kong. It is a dream of Prime Minister Narendra Modi. It is his baby as he has visualised a various aspect of the project,” said Chauhan.

According to the brochure of Gift city, or Gujarat International Finance Tec-City expectations, the banking activities and Individuals in the offshore centre would rise to $120 billion by 2025. It targets the $48 billion in banking activities done by Indian companies and individuals in offshore centres in 2015

It is one of PM Modi’s dream project which gives products to satisfy hedging and investment demand in an economy growing at more than 7 percent annually. Interestingly, the new project would not be upsetting the central bank’s control on a depreciating rupee and the zone has already created about 5,000 jobs so far. Now the aim of the project is to meet its eventual target of 500,000.

Chauhan had said that BSE intends to invest 5 billion rupees ($73 million) for trading and clearing at the new exchange in three to four years and through Gift City, Indian companies can raise up to $1 trillion in 10 years.

Finance firms setting up units in Gift City will pay a reduced tax valid for special economic zones and can more easily offer foreign currency loans to Indian companies abroad, overseas nationals and foreign companies. China is establishing a similar zone called Qianhai in Shenzhen, where pilot policies can be tested before being rolled out nationally.