- The Gujarat International Finance Tec-City (GIFT), a financial district located between Ahmedabad and Gandhinagar in Gujarat, was conceptualised as an alternative to global financial hubs such as Hong Kong, Singapore or London. Though the idea was mooted in 2007, work on the physical infrastructure started in 2012. It was only in 2015 that business regulations were introduced; 2017 saw the setting up of an international exchange.
- The GIFT City SEZ — with demarcations for domestic and export-oriented units — is the only place in India to be designated as an IFSC.
- IFSC is a jurisdiction that provides financial services to non-residents and residents, to the extent permissible under the current regulations, in any currency except Indian Rupee.
- Doing business inside the IFSC comes with the benefit of a relaxed tax regime — a 10-year tax holiday with no securities transaction tax, commodities transaction tax, or tax on long-term capital gains.
- The Global Financial Centers Index report, London, had in March 2021 placed the IFSC in GIFT City at the top among 15 centres globally, which are likely to become more significant over the subsequent two to three years.
Why in News?
- Union Minister of Commerce and Industry Piyush Goyal reviewed the functioning of the GIFT Special Economic Zone.
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