Union Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman underlined that the central government’s commitment to make GIFT City a world-class fintech hub as stated in the Union Budget 2021-22
GIFT-IFSC is especially targeted towards companies in offshore banking, capital markets, offshore asset management, offshore insurance, IT services, ITeS/BPO services, and ancillary services sectors.
Gandhinagar:
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman announced clearance to three key projects worth more than Rs 500 crore for International Financial Services Centres Authority (IFSCA) in her visit to GIFT-City in Gujarat’s Gandhinagar, informed the Ministry of Finance on Saturday. The union minister leads a delegation including the two Ministers of State for Finance and Secretaries from the Ministry of Finance and Ministry of Corporate Affairs to Gujarat International Finance Tec (GIFT) City, the release read.
Sithraman also announced during the event that the Department of Economic Affairs has just last week approved three key proposals of IFSCA.
The first was the proposal of Rs 200 crore for a Head Quarter Building for IFSCA which has Rs 100 crore as a grant in aid and the remaining Rs 100 crore as loan from the government. The second was the proposal of Rs 269.05 crores for the development of IT infrastructure of IFSCA and the third was the IFSCA FinTech Scheme of Rs 45.75 crore.
The Finance Minister said that “it is the government of India’s endeavour to make India a global financial gateway through GIFT-IFSC at GIFT City.”
The bullion exchange is expected to come into play soon for which all the necessary infrastructure inclusive of safe vault facilities are built and are operational and indicated that Bullion exchange will be a big game-changer for India, Sitharaman said.
She also underlined the central government’s commitment to make GIFT City a world-class fintech hub as stated in the Union Budget 2021-22.
The Budget’s IFSC-related measures include tax holiday for capital gains for aircraft leasing companies, tax exemption for aircraft lease rentals paid to foreign lessors, tax incentive for relocating foreign funds in IFSC and exemption to investment divisions of foreign banks, the Ministry of Finance said in a series of tweets.
The minister was here ”to review efforts to develop India as a gateway to global financial services for corporates,” it said. She was accompanied by Minister of State for Finance Pankaj Chaudhary and finance ministry officials.
She also attended a presentation which emphasised on how GIFT-IFSC is especially targeted towards companies in offshore banking, capital markets, offshore asset management, offshore insurance, IT services, ITeS/BPO services, and ancillary services sectors.
The finance minister also visited the India International Exchange, an automated waste collection system and inspected a 4.5 km long underground utility tunnel, it said. She was also briefed about the bullion vaulting facility at the GIFT City.
India International Exchange commenced operation on January 16, 2017. As on November 18, 2021, its daily turnover has crossed USD 6 billion, with the exchange having 38 members.
As of October 2021, there are 21 banking licences at GIFT City, including 15 domestic banks, five foreign banks, and one multilateral institution, the ministry said. The banking asset size of GIFT City has increased to USD 22 billion as of October 2021, its banking transaction crossing USD 125 billion, and derivatives trade by IFSC banking units crossing USD 135 billion between May 2020 and October 2021, it added.
GIFT City is an integrated city built on 886 acres of land, which includes office spaces, residential apartments, schools, hospital, hotels, clubs, retail and various recreational facilities — all hallmarks of a state-of-the-art integrated financial centre, it said.