The then Finance Minister Arun Jaitley made it crystal clear the country can have only one IFSC and that will be in GIFT city in 2017
NEW DELHI| The central government gazette dated 27 April, has declared Gandhinagar in Gujarat the new headquarters for the IFSC Authority instead of Mumbai. Prime Minister Narendra Modi’s dream project to make Gujarat International Finance Tech City is underway. It was first said to be placed in Mumbai but now IFSC has its place in Gandhinagar.
Mumbai’s land was more specific for the IFSC project due to its geographic position and the weather. More prominently the city’s Time-zone and the midway between two major IFSC’s i.e Singapore and London make it more unique. The idea lead by Manmohan Singh in 2006 of IFSC in Mumbai was following the above specifications of the City.
The recommendations of a committee formed under well-known investment banker Percy Mistry to recommend the path ahead were never followed. Percy committee had sought a major upgrade of the city’s infrastructure, but what Mumbai got was only the Ghatkopar-Andheri Metro line.
The committee has also asked for the promulgation of new, more liberal laws in banking, securities, commodity, and currency trading. This too could not be achieved.
Following a senior banker opinion, IFSC in Mumbai would have helped in job creation for about 100,000 in the financial sector direct and another 100,000 in ancillary services.
While responding to the question in the Lok Sabha, the then Finance Minister Arun Jaitley made it crystal clear the country can have only one IFSC and that will be in GIFT city in 2017.
Hemant Desai, Political Analyst said, “Modi’s love for his home state defeated Mumbai’s natural claim to the status of an IFSC. Modi, even after becoming the prime minister, has not forgotten that he is a Gujarati first”.
PM Modi made it clear in his early year of politics he wanted Gandhinagar to get the international financial hub status, it was clear that Mumbai got no chance.
This decision created a political stir in Maharashtra Politics. Many state leaders’ responses were bitter when the central decision unfolded.
President of Maharashtra Congress Committee Balasaheb Thorat expresses his distressed through his tweet stating, the center should rethink their decision.
The Central govt's decision to locate the #IFSC to Gujarat is disappointing & is being done to reduce Mumbai's stature. The Centre should re-consider their decision, after all Mumbai is the financial hub of the country.
Why @BJP4Maharashtra leadership silent on this issue?— Balasaheb Thorat (@bb_thorat) May 2, 2020
Clearing the air the former chief minister of Maharashtra Devendra Fadnavis in his series of tweets explained, Mumbai has a natural IFSC ecosystem and still can regain if Maharashtra Government wants.
In December 2019 the Government of India enacted a law to create an Authority to regulate financial services center and its headquarters is now notified in Ahmedabad.
— Devendra Fadnavis (@Dev_Fadnavis) May 2, 2020
Fadnavis also lashes out on people who were blaming PM Modi who wish to make Gujarat and International hub.
In 2007, at Vibrant Gujarat Summit, the then Gujarat CM Hon @narendramodi ji announced GIFT City Ahmedabad to be developed as IFSC and appointed ECADI for its planning.
By 2012 all plans of #IFSC at Gujarat were ready and work had almost started.— Devendra Fadnavis (@Dev_Fadnavis) May 2, 2020
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