Nirmala Sitharaman clears 2 GIFT City proposals

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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.

IFSCA Members

  • The IFSCA consists of nine members appointed by GOI. The members are:

  • Chairperson

  • 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.