- The Gujarat International Finance Tec-City (GIFT City) is India’s first and only International Financial Services Centre (IFSC) where banks, stock exchanges, and financial services firms have set up their global operations.
- Area: As per the plans, 886 acres will be provided to develop nearly 62 million square feet of built-up area constituting 67% commercial, 22% residential, and 11% social space.
- Multi-Service SEZ: The entire city project has been divided into a multi-service Special Economic Zone (SEZ) spread over 261 acres and an exclusive domestic tariff area (DTA) spread over 625 acres.
- Tax Exemptions: The Centre has announced a range of tax exemptions for entities to start their international operations from the GIFT City. As a result, both the BSE and the NSE have set up their international stock exchanges, 17 banks including 12 domestic banks and five international banks issued licenses to operate, 100 plus broking services, depository clearing operations, and over 19 companies have begun operations for non-life reinsurance business.
- Other Benefits: The Centre’s IFSC-related relief measures include tax holidays for capital gains for aircraft leasing companies, tax exemption for aircraft lease rentals paid to foreign lessors, tax incentives for re-locating foreign funds in IFSC, and exemption to investment divisions of foreign banks.
- Dispute Resolution: Since it’s a hub of international financial services, the Singapore Arbitration Centre has also been set up for dispute resolution while the International Bullion Exchange will likely become functional soon.
- Purpose: The idea behind the IFSC is to bring back the financial services and transactions that are carried out in offshore financial centers by Indian corporate entities and overseas branches and subsidiaries of financial institutions to India by offering world-class infrastructure and a globally benchmarked regulatory environment.
GIFT City: Benefits
- Central Government’s proactive support to develop the country as a hub of international financial services, the GIFT City has emerged as the preferred location for national and multinational firms.
- Tax exemptions also make it lucrative for investment.
- Job creation will occur in huge numbers. A study carried out in 2007 by M/s Mckinsey & Co predicted that the GIFT City project will generate 10 lakh direct jobs by the year 2020.
- Infrastructure plays a pivotal role in supporting the business environment and quality of life in GIFT City. A judicious combination of the latest technology and global best practices in infrastructure service delivery are in place. All of these come together to provide an international standard of working and living.
