India now among select nations that shape global financial sector trends- PM

India now among select nations that shape global financial sector trends: PM

Prime minister Narendra Modi on Friday launched a “Connect Platform” integrating India’s National Stock Exchange and the International Financial Services Authority (IFSCA) with the Singapore Exchange Ltd (SGX), at the Gujarat International Finance Tec (GIFT) City near here. The facility would help deepen liquidity in derivative markets at GIFT-IFSC.

Modi said India would now be in company of select countries like the US, the UK and Singapore where new trends in the global financial sector are shaped.

Modi also launched the India International Bullion Exchange (IIBX), the gateway for bullion exports from India at the Gift City.

IIBX is expected to standardise gold pricing in the country, the second-largest consumer of gold in the world after China.

The exchange will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialisation of gold in India.

Modi said IIBX will help Indian jewellers in purchasing gold and other precious metals in a transparent manner. “With gold trade getting more and more organised through this exchange, India will be in a position to fix gold prices and it will leave an impact across the world,” he said.

“In June 2022, assets under mutual funds’ management stood at Rs 35 trillion, up 250% from the level eight years ago.

This shows that people want to invest. Thus, we need to educate them and provide them with required information,” he said, urging the industry to focus on financial literacy.

Modi also laid the foundation stone for headquarters buiilding for IFSCA, which will be built at a cost of Rs 200 crore.

Separately, IFSCA signed memorandums of understanding with regulatory authorities of Singapore, Luxembourg, Qatar and Sweden. Entry of three international banks, including Deutsche Bank, JP Morgan Chase Bank and MUFG Bank at IFSC Banking Units in GIFT City was announced too.

The capacity of Bank of America’s global in-house center here will be increased.

“IIBX with its technology-driven solutions, will facilitate transition of Indian bullion market towards a more organised structure by granting qualified jewellers a direct access to import gold directly through the exchange mechanism,” an official release said.

On the sidelines of the function, finance minister Nirmala Sitharaman told reporters, “We would have better price negotiation strength with the launch of this bullion exchange.”

India imported 1,069 tonne of gold in 2021, up from 430 tonne a year earlier. Nominated banks and agencies approved by the central bank conduct trade or import gold and sell it to dealers.

(With PTI inputs)