Taipei: A visiting Indian official responsible for regulating an international financial center in India made a compelling case on Monday for increased investment from the Taiwanese banking sector into the special economic zone, aiming to create mutually beneficial opportunities.
According to Focus Taiwan, Shri K. Rajaraman, chair of the International Financial Services Centres Authority (IFSCA) overseeing the Gujarat International Finance Tec-City (GIFT City), highlighted the strategic advantages of the international financial center located in Gujarat state. At a media event in Taipei, he explained that GIFT City operates within a separate economic and offshore jurisdiction, offering a flexible, business-friendly regulatory environment aligned with global standards.
Rajaraman emphasized that at GIFT City, financial institutions can offer products and services in foreign currencies, including Taiwan dollars, catering to both international and Indian clients. Moreover, they can leverage India's vast talent pool while enjoying significant tax and operational benefits. Currently, more than 850 entities are operational in GIFT City, spanning sectors such as banking, fund management, insurance, capital markets, fintech, aircraft and ship leasing and financing, professional service providers, and foreign universities.
Rajaraman extended an invitation to more Taiwanese businesses, particularly from the banking and finance sectors, to invest in the project. He noted the complementary nature of the Taiwanese and Indian economies, suggesting that the partnership could be mutually advantageous. "Number one, Taiwanese technology can come to the vast Indian markets with [a population of] 1.4 billion, which is the largest population in the world," he stated.
India's representative to Taiwan, Manharsinh Yadav, also spoke at the event, underscoring that the shifting geopolitical landscape has prompted Taiwanese companies to seek new investment destinations. "They would like to move away from some destinations and would like to go to more friendly democratic destinations," Yadav said.
He added that India is rapidly developing its manufacturing sectors in areas crucial to Taiwan, such as semiconductors and electronics. "So this is a very opportune time, you know, a place is developing while Taiwan is seeking new destinations," he remarked.
Yadav expressed optimism about the global supply chain shift, believing it could benefit both Taiwanese and Indian companies if they collaborate. "That is the job that we are trying to do, to marry them, to bring them together," he concluded.
He also noted that Taipei Fubon Commercial Bank and CTBC Bank, Taiwan's largest privately-owned bank, have planned to open branches in GIFT City.