Mumbai on Track to be a Global Financial Hub

The commercial capital of India, Mumbai, is on its way to become
a truly global financial hub by 2020. Work is in progress to improve
infrastructure of the entire city.

The Panel does not see development of Special Economic Zones
(SEZs) featuring top notch facilities as the only solution to
cater to demanding business requirements of the financial services
industry. Mumbai requires improving on its infrastructure if it
wants to host an international financial centre.

The steps cannot be taken quickly through arabesques such as
the Navi Mumbai SEZ. Putting it up in an SEZ is not a feasible
solution, says the committee in its report submitted on Monday.

The city must grab the attention of well off, mobile, and multi
culturally inclined globally competitive persons to work for India
or foreign companies in the financial sector. As far as progress
in infrastructure building in Mumbai is concerned, it is moving
at snail’s pace.

The committee is pondering over to invite foreign construction
and development firms alongside the prominent Indian real estate
companies to ensure that the recovery of Mumbai’s infrastructure
deficit in the coming years. The facilities would include world
class health and educational services, hotels, cultural institutions
in addition to 24 hour power and water supply.

The committee has also recommended existing legislations directing
financial sector with a new Financial Services Modernization Act
and bringing controversial Securities Transaction Tax and stamp
duties to an end. The global firms dealing with corporate law,
accounting, business consultancy and tax advisory should be allowed
to establish offices in Mumbai, says the committee.

India needs to follow the countries which have successfully
implemented full currency convertibility. This would help the
country to prevent mistakes made by few others thereby taking
every possible step to develop Mumbai’s infrastructure.