I hope my letter will be taken in a right spirit. And a true statesmanship is exhibited, considering to establish IFSC in Mumbai : Sharad Pawar to PM Modi

Sharad Pawar, @PawarSpeaks, President of NCP :

  • Raised my concerns to Hon. @PMOIndia and drew his attention towards the recent decision taken by the Central Government of India to establish the proposed International Financial Service Centre (IFSC) Authority in Gandhinagar instead of in Mumbai.
I requested Hon. @PMOIndia
to have a look on statistical information which confirms the former decision to set up the IFSC in Mumbai.
  • If you see the general psyche of all business communities , bankers and other financial institutions, Mumbai is their natural choice for setting up such unified authority.
  • The Central Government’s decision will be taken as act of undermining the strategic importance of Mumbai that boasts as the Nation’s Financial Capital. Even the financial institutions across the world will be taken a back with this shocking decision.
  • As per the data published by RBI, on April 23, 2020, the Indian Banking Sector has deposits to the tune of Rs. 145,00,000 crores. The share of Maharashtra State alone in the said deposits is 22.8 % followed by Delhi (10 %), Uttar Pradesh (7.8 %), Karnataka (7.2 %) and Gujrat (5.4 %) as per the reserve requirements, every bank has to maintain SLR @ 18 % of its deposits, in the form of government securities (G-sec).
  • Through this G-sec the Central Government receives funds to the tune of Rs. 26,00,000 crores. Out of such funds Rs. 5,95,000 crores is received from the State of Maharashtra alone as against Gujarat’s contribution of Rs. 1,40,000 crores.

  • In spite Maharashtra’s immense contribution to G-sec, the decision of establishing IFSC in Gujarat is egregious, erroneous and unwarranted.
  • It will also be perceived as a move to shift financial institutions and business houses away from Maharashtra and will create unnecessary political disturbances.
  • It will not only cause financial damage to the country but also bring International discredit to the it by undermining the importance of Mumbai.
  • Mumbai has been recognized as world’s top ten centers of commerce in terms of global financial flow generating 6.16 % of India’s GDP and accounting from 25 % of industrial output and 70 % of capital transactions to Indian economy.
  • The city houses important Financial Institutions and Corporate headquarters of numerous companies and its business opportunities attracts many multi-national companies from all over the world.
  • Since the IFSC Authority is a unified agency to regulate all financial services in international financial services centers in the country and Mumbai being country’s economic, financial and commercial capital is the best choice and place to relocate IFSC in it.
  • I therefore urge you to reconsider the decision to shift IFSC in Gujarat and relocate it in Mumbai on merit basis.
  • I expect Hon. @PMOIndia to take a rational, judicious decision keeping aside the state politics and consider it as an issue of utmost National importance.
  • I hope my letter will be taken in a right spirit. And a true statesmanship is exhibited, considering to establish IFSC in a Financial Capital of India i.e. Mumbai.

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