PM Modi to inaugurate India International Exchange on Jan 16

Prime Minister Narendra Modi is set to inaugurate an international exchange in Gujarat state's new finance zone, Gujarat International Finance Tec-City (GIFT City). The newly formed exchange is seeking to grab some of India's USD 48 billion in offshore banking activities from Singapore, Dubai and Hong Kong.

The India International Exchange will start trading single stock and equity index futures on January 16. It will add gold, silver, copper, oil and the rupee soon. Ninety-six brokerage firms have already registered in the zone.

The Gift city has estimated that its business is set to increase up to USD 120 billion by 2025. It was PM Modi who, as the then Chief Minister of Gujarat, had visualised a zone that would offer products to satisfy hedging and investment demand in an economy growing at more than 7 per cent annually, without upsetting the central bank's control on a depreciating rupee.

The Bombay Stock Exchange (BSE) is planning to invest Rs 5 billion for trading and clearing at the new exchange in three to four years. Indian companies can raise up to USD 1 trillion in 10 years via the GIFT city.

About three to four global banks are seeking approval from their home regulators to set up their offices in the GIFT city, in addition to the seven local banks and two insurers that have already started operations. The National Stock Exchange of India (NSE) has plans to open a bourse in GIFT and talks for cooperation with international exchanges are underway.