Gujarat's GIFT City, under the auspices of Prime Minister Mr. Narendra Modi's flagship initiatives, is gearing up to revolutionize financial transactions with the introduction of real-time dollar settlement. Expected to commence operations by late 2024 or early 2025, this initiative within the Gujarat International Finance Tec-City (GIFT City) aims to streamline transactions and bolster India's appeal to global investors.

Mr. K Rajaraman, Chairman of the International Financial Services Authority (IFSCA) overseeing GIFT City, emphasized that the real-time settlement system will significantly enhance operational efficiency. It underscores GIFT City's ambition to compete with established global financial centers such as Singapore and Dubai. India has facilitated this initiative by easing capital controls and simplifying tax structures specifically for GIFT City, creating an attractive environment for financial institutions and global investors seeking alternative trading opportunities.

In addition to real-time settlement, GIFT City has already launched a domestic non-deliverable forward market settled in dollars, attracting foreign banks offering derivative products to investors interested in exposure to India without physical presence. This move aligns with global trends towards modernizing cross-border transactions to reduce costs and delays associated with traditional banking networks.

Globally, initiatives such as the Bank for International Settlements’ bridge project, utilizing blockchain technology for instant settlement, exemplify efforts to enhance financial infrastructure efficiency. These developments reflect a broader trend towards integrating advanced technologies into financial systems to meet the evolving needs of global markets.

In conclusion, GIFT City's introduction of real-time dollar settlement marks a significant stride towards enhancing India's financial infrastructure and attractiveness to international investors. As it moves forward, GIFT City is poised to play a pivotal role in India's financial ecosystem, driving economic growth and positioning the country as a competitive player in the global financial landscape.

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