GIFT City, located between Ahmedabad and Gandhinagar on the banks of the Sabarmati River, is an ambitious business district designed to cater to global and domestic enterprises. It is envisioned as a smart city that sets international benchmarks for finance and technology hubs.
Overview of GIFT City IFSC
- International Financial Service Centre (IFSC): GIFT City IFSC is witnessing significant success in offshore financial transactions and investment activities related to India.
- Key Statistics (Mar-23 to Dec-23):
- Trading Value: ~$477 billion
- Banking Assets: ~$52 billion
- Fund Management Entities: 83 funds with ~$7 billion of commitments
Strategic Importance
- Global Investment Destination: As India becomes more attractive to global investors, GIFT City serves as a gateway for international investments into India.
- Competitor to Global IFSCs: Competing with IFSCs in Dublin, Hong Kong, and Singapore, GIFT City enhances India's presence on the global financial map.
Tri-City Ecosystem
- Business and Industry Support: The ecosystem fosters an environment conducive to business, international finance, and foreign investment.
- Expansion: Initially spread across 886 acres, it is now being expanded to over 3,300 acres.
- SEZ and DTA: The city includes a multi-service Special Economic Zone (SEZ) and an exclusive Domestic Tariff Area (DTA).
Infrastructure and Technology
- State-of-the-Art Facilities:
- District Cooling System (DCS)
- Automated Waste Collection System (AWCS)
- Underground Utility Tunnel (UUT)
- Smart City Development: These high-quality infrastructures contribute to GIFT City's status as one of the world's leading smart cities.
Regulatory Framework
- IFSCA: Established under the IFSCA Act (2019), the International Financial Services Centres Authority (IFSCA) was granted regulatory powers of the RBI, SEBI, IRDAI, and PFRDA in October 2020.
- Unified Regulator: IFSCA promotes ease of doing business and provides a world-class regulatory environment.
Business Activities in GIFT City IFSC
1. Asset Management
2. Banks
3. Capital Markets
4. Insurance
5. Other Financial Institutions
6. Emerging Activities
Advantages of GIFT City IFSC
- Foreign Investment: Facilitates foreign investments in India-centric solutions.
- Competitive Regime: Offers a competitive operational and tax regime similar to other key international jurisdictions.
- Cost-Effective: Provides a cost-effective jurisdiction for operations.
- Indian Diaspora: Connects the Indian diaspora to India's growth story.
- Simplified Registration: Features a unified regulatory framework with a simplified registration process for funds and fund managers.
- Investor Protection: Established framework for investor protection and transparency.
- Fund Ecosystem: Deepening and established fund ecosystem.
- Global Market Access: Provides access to both the large Indian market and international market solutions.
Government Initiatives
The Indian Government's efforts to open financial markets to the world, including the development of GIFT City IFSC, position India as an attractive destination for global investors. These initiatives are expected to positively impact India's economic growth and enhance its influence on the global financial stage.
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