It is certainly no secret that India has emerged as a force in the global economy during the past 10 years.
According to a 2016 report from the Reserve Bank of India, the country has enjoyed a growth rate above seven percent over the past decade, and is currently regarded as one of the fastest growing countries in the world.
In fact, by 2030, India is expected to be the third largest economy on the planet, behind the U.S. and China, and could eventually surpass both countries to take the No. 1 spot, according to a report by UK think-tank Centre for Economics Business and Research (CEBR).
At the heart of this progress is Mumbai, a sprawling city and the financial hub of India. As is the case with many emerging markets, Mumbai has become the driving force behind the country’s present and future growth.
The need for the fastest and most reliable connectivity to help spur India's growth is a top concern for the Indian government.
Earlier this year, Globe IFSC and Edelweiss IFSC completed the first trade on India International Exchange (INX). INX – a subsidiary of Bombay Stock Exchange (BSE) – is part of Gujarat International Finance Tec-City (GIFT City), India’s bold answer to other global financial hubs.
We’ve been following the exchange’s progress over the past six months and have seen steady growth with heavy investment in world-class infrastructure, average daily volumes of around $65 million and more products being added, including gold kilogram contracts soon.
We’ve followed GIFT City’s construction for some time and planned for its arrival back in January.
For example, Mumbai Connect, our dependable ultra low-latency connectivity service in/out of India to global markets, has been specifically optimised to address the growing demand from high frequency traders (HFTs) in India and to help financial organisations take advantage of the new trading opportunities that await.
India’s proximity to other APAC exchanges and those providing gateway access to the country are expected to reap the rewards.
DGCX, BKC, BSE, NSE, SGX, CME and MOEX will also become more lucrative trading venues by default, especially as GIFT City continues to grow in popularity and more companies move into available space – 94 brokers at the last count.
This is welcome news for trading firms that have built their propositions around international growth, especially considering the wave of protectionism that’s occurred within Western economies in recent months.
Assessing India as a new location or already active in the country? Get in touch with our team.