HDFC Life International will offer US dollar-denominated life and health insurance solutions for NRIs (non-resident Indians) and the global Indian diaspora, and HDFC AMC International will offer fund management and advisory solutions as part of its offshore hub, Chairman Deepak Parekh said.
Parekh was speaking at the inauguration of HDFC International Life and Re, IFSC Branch, and HDFC AMC International (IFSC) at GIFT City on Thursday.
Parent company HDFC Bank’s IBU has been present at GIFT City since 2017, offering corporate and treasury solutions, trade credit, foreign currency loans, and depository services, among others.
“This marks our commitment to providing financial security to individuals and families across the globe and investment solutions for both institutional and non-institutional investors across the globe,” he said, adding that a GIFT City presence for the insurance and AMC businesses is extremely beneficial given the low penetration levels in both sectors.
Life insurance penetration in India is 3.2 per cent of GDP, lower than the global average of 7 per cent. The penetration of mutual funds in India is 17 per cent of GDP, significantly below the world average of 80 per cent of GDP.
“We do have a long way to go, but I am confident that Gift City will enable the country to facilitate the development of a strong base of international financial services in the country,” Parekh said, adding that globally, IFSCs (International Financial Services Centres) have contributed to increased investments and employment and have helped raise the bar on efficiency and competitiveness of financial markets.
He said that the opportunities for Gift City are rapidly unfolding across an array of sectors such as offshore banking, finance companies, alternative investment funds, bullion markets, asset management, insurance, global trading, treasury operations, IT and IT-enabled services, and real estate.