IFSCA-IVCA Conclave: 'Reforms, inclusion, and investment key to Viksit Bharat 2047 vision'

K Rajaraman, Chairperson of the International Financial Services Centres Authority (IFSCA), has said the GIFT City has evolved as a global financial hub, driven by progressive policies, tax incentives, and strong governance. He highlighted the International Financial Services Centres Authority's (IFSCA) role in enabling seamless cross-border fund flows, while ensuring compliance and transparency.

Rajaraman was speaking at the inaugural IFSCA-IVCA Fund Management Conclave 2025 hosted by the India’s apex industry body for alternative assets, the Indian Venture and Alternate Capital Association (IVCA) and the IFSCA. The conclave convened key stakeholders to deliberate on the regulatory landscape, fund structures, and India's positioning as a global fund management hub.

As per Rajaraman, aligning industry needs with evolving regulations is "crucial" to creating a competitive and resilient ecosystem. He underscored key economic reforms, including inflation targeting, GST as a unified tax, and the Insolvency and Bankruptcy Code, all of which he said strengthened corporate discipline and expanded capital market participation, boosting investor confidence.

He also said financial inclusion remains a top priority, with 540 million bank accounts integrated into the formal banking system—a major step forward in connecting individuals to capital markets, insurance, and pension funds. "Currently, 190 million people actively engage with mutual funds or stock markets, with 110 million unique investment accounts, representing about 10% of the population. While this is a promising figure for a developing country, I look forward to seeing this number rise to 30–40%," he opined.

He said moving forward, disruptive reforms will be essential to achieving the ‘Viksit Bharat 2047’ vision outlined by Prime Minister Narendra Modi.

He also talked about sectoral reforms, which must modernise their legal frameworks, he said. "In the next three years, we anticipate the replacement of outdated colonial-era laws with business-friendly regulations, alongside further simplification and deregulation to support industry growth. To accelerate economic progress, India must also raise its investment rate—currently at 32% of GDP—by ensuring a steady flow of capital and creating attractive investment opportunities," said Rajaraman.

He also said a key focus should be on expanding access to equity for manufacturing, services, infrastructure, and other critical sectors at globally competitive rates.