International Financial Services Centres Authority (IFSCA), the authority which oversees the International Financial Services Centre (IFSC) at the Gift City in Gujarat has set up an expert committee to position GIFT IFSC as Global Commodity Trading Hub.
Despite India being one of the world’s largest consumption markets and major importer of various commodities, many Indian enterprises currently conduct their trading operations from international financial centres outside India.
These enterprises have chosen foreign bases due to favourable tax and regulatory environments, superior access to global markets, robust financial infrastructure, and internationally aligned legal systems. To counter this trend and attract more business to India, the IFSCA has set up an expert committee. This committee’s mandate is to develop strategies to enhance GIFT IFSC’s competitiveness and integration with global commodity trading flows.Rajeev Kher, Former Commerce Secretary, Government of India, will head this committee as its chairperson.
By enabling commodity trading within the IFSC, India aims to integrate its financial ecosystem with global trade, attract significant international investments, and bolster the country’s presence in the global commodities market. This initiative is expected to foster a more competitive and dynamic trading environment within GIFT IFSC, positioning it as a key player on the world stage.