Strengthening India’s Financial Future: Shri K Rajaraman Highlights Reforms, Inclusion, and Investment Growth at IFSCA-IVCA Conclave

Key Highlights from IFSCA’s Growth Data (Sept–Dec 2024):

• Number of FMEs grew by 8.59% to reach 139

• Number of Schemes increased by 17.86% to 198

• Investee Companies expanded by 14.2%, reflecting growing market confidence

National/Gujarat, 12th March 2025: India’s apex industry body for alternative assets, the Indian Venture and Alternate Capital Association (IVCA), in collaboration with the International Financial Services Centres Authority (IFSCA), successfully hosted the inaugural IFSCA-IVCA Fund Management Conclave 2025 on 12th March 2025 at GIFT City, Gujarat.

The conclave convened key stakeholders to deliberate on the evolving regulatory landscape, innovative fund structures, and India’s positioning as a global fund management hub. In collaboration with IC Universal Legal, Investec, PwC, and Peak XV Partners, discussions revolved around strategies to accelerate capital flows through IFSC and bolster India’s role in the global investment ecosystem. Shri K Rajaraman, Chairperson, IFSCA, delivered a focused address on India’s financial trajectory and regulatory evolution.

Shri K Rajaraman’s Key Insights: Shri Rajaraman emphasized the evolution of GIFT City as a global financial hub, driven by progressive policies, tax incentives, and strong governance. He highlighted IFSC’s role in enabling seamless cross-border fund flows while ensuring compliance and transparency. 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 have strengthened corporate discipline and expanded capital market participation, boosting investor confidence.

In his keynote address, Shri Rajaraman noted, “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%. Achieving this will require a more resilient and trustworthy capital market ecosystem. Moving forward, disruptive reforms will be essential to achieving the ‘Viksit Bharat 2047’ vision outlined by our Honorable Prime Minister.”

“Additionally, sectoral reforms must modernise their legal frameworks. 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. A key focus should be on expanding access to equity for manufacturing, services, infrastructure, and other critical sectors at globally competitive rates.”

The conclave underscored IFSCA’s proactive regulatory approach, making investment channels more accessible for domestic and foreign investors. Shri Rajaraman reiterated IFSCA’s continued collaboration with IVCA to refine policies and position India as a premier global financial hub.