India’s policymakers have long-desired more financial activity linked to the economy to take place onshore. But they remain reluctant to quickly and fully open the capital account, with recent bouts of rupee volatility reinforcing the case for that cautious approach. GIFT City is an attempt to provide a middle ground: it allows the authorities to attract cross-border activity without opening the financial system more broadly.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.