American entrepreneur and former CTO of Coinbase Balaji S. Srinivasan recently plugged India’s GIFT )Gujarat International Finance Tec) City in a broader discourse on India’s rapidly improving living and working conditions. His observations not only add weight to the growing optimism around GIFT City but also offer a compelling case for India’s emergent status as a global tech and financial hub.
Srinivasan starts off by highlighting the significant strides India has made in establishing a conducive daily loop for tech workers. From reliable power and internet to modern airports, the basics are now robustly in place. He contrasts this with cities like San Francisco and Los Angeles, where public goods have deteriorated. The streets of India are cleaner, the crime rates are lower, and there’s a palpable sense of community spirit. All these factors, although not easily quantifiable, do matter when it comes to quality of life.
But what really catches the eye in Srinivasan’s comments is his mention of GIFT City. He acknowledges that while the most ambitious Indians might still go diasporic for business opportunities, the baseline in India has “vastly improved,” and GIFT City is an exemplar of this transformation.
For those unfamiliar, GIFT City is India’s first International Financial Services Centre (IFSC), and it’s positioning itself as a hub for Alternative Investment Funds, fintechs, and international financial services. It’s being touted as India’s answer to global financial centres like Singapore, Cayman Islands, and even Dubai. With financial incentives such as zero GST and a 100% tax holiday on profits for 10 years, the Indian federal government is making a strong case for businesses to set up shop there.
Srinivasan’s endorsement comes at an opportune time. The Indian government is already showing signs of significant activity, with around $200 million moved from Silicon Valley Bank deposits to GIFT IFSC, and about 55 Alternative Investment Funds and 30 fintech companies setting up subsidiaries. Moreover, its regulatory body, the International Financial Services Centres Authority (IFSCA), is proactive in aligning its ecosystem with global financial regulations. This is a positive signal for international investors eyeing the Indian market.
However, it’s not all smooth sailing. Concerns about regulatory stability, physical infrastructure, and lifestyle constraints still loom large. Moreover, while Srinivasan downplays issues like pollution and paperwork, these factors cannot be entirely dismissed. They form part of the larger puzzle that GIFT City and India, in general, need to solve to truly establish themselves as global leaders in tech and finance.
The endorsement by a tech luminary like Balaji S. Srinivasan is undoubtedly a feather in the cap for GIFT City and, by extension, India. His comments are not just an affirmation of the Indian government’s potential but also a nod to the broader improvements in India’s infrastructure and public services. The challenges are manifold, but the momentum is clearly building, and the stakes are high. If GIFT City lives up to its promise, it won’t just be another financial hub but a symbol of India’s renewed global ambitions.
In the grander scheme of things, Srinivasan’s observations serve as a timely reminder: India is no longer a country that ambitious engineers and entrepreneurs need to leave to improve their standard of living. Whether GIFT City will become as business-friendly as Singapore or Cayman remains to be seen, but one thing is clear—the baseline has vastly improved, and that, as Srinivasan rightly puts it, “changes everything.”
