Nirmala Sitharaman clears 2 GIFT City proposals
- Union Finance Minister Nirmala Sitharaman announced the clearance of two proposals worth ₹469 crore of the International Financial Services Centres Authority (IFSCA) at GIFT City during her one-day visit in Gandhinagar.
- This will further upheld the Central government’s commitment to make GIFT City a world-class fintech hub as stated in the Union Budget 2021-22.
What is GIFT City?
- Gujarat International Finance TecCity (GIFT) is a central business district under construction between Ahmedabad and Gandhinagar in Gujarat, India.
- Its main purpose is to provide high quality physical infrastructure (electricity, water, gas, district cooling, roads, telecommunications, broadband) and the infrastructure is either Mumbai, Bangalore, Gurgaon.
- It is to enable financial and technology companies to operate from such. Insufficient or very expensive.
- Special Economic Zone (SEZ), International Education Zone, Integrated Township, Entertainment Zone, Hotel, Convention Center, International Techno Park, Software Technology Park (STPI) Unit, Shopping Center, Stock Exchange and Service Unit
- The idea for this city was developed during the vibrant Gujarat Global Investor Summit 2007.
- The Union Cabinet has approved the establishment of a unified body to regulate all financial services of the International Financial Services Center (IFSC) in India through the 2019 International Financial Services Center bill.
What Is IFSC
- An IFSC enables bringing back to India the financial services and transactions that are currently carried out in offshore financial centers by Indian corporate entities and overseas branches / subsidiaries of financial institutions (FIs) by offering business and regulatory environment that is comparable to other leading international financial centers in the world like London and Singapore.
- The International Financial Services Centres Authority (IFSCA) was established by the Government of India to develop and regulate international financial services centres in the country. Gift City is India`s first IFSC being developed.
- It would provide Indian corporates easier access to global financial markets.
- IFSC will also complement and encourage further development of India's financial markets.
- The first IFSC in India was founded in GIFT City, Gandhinagar, Gujarat.
The IFSCA consists of nine members appointed by GOI. The members are:
1 member from RBI
1 member from SEBI
1 member from PFRDA
1 member from IRDAI
2 members from the Finance Ministry
2 members appointed on recommendation of a Selection Committee
Services an IFSC can provide:
- Fundraising services for corporations, individuals and governments.
- Wealth management.
- Asset management and global portfolio diversification undertaken by pension/mutual funds and insurance firms.
- Global tax management and cross-border tax liability optimisation, providing a business opportunity for financial intermediaries, law firms and accountants.
- Risk management operations (insurance and reinsurance).
- Global and regional corporate treasury management operations.
- Mergers and acquisitions between trans-national corporations.