GIFT City: India’s upcoming economic and financial hub

Source: The post is based on the article “GIFT City: India’s upcoming economic and financial hub” published in Indian Express on 29th July 2022.

What is the News?

India is one of the fastest-growing economies in the world. The country needs to expand its economic and strategic activities globally and GIFT City, an emerging global financial hub has a pivotal role to play in achieving this vision.

What is GIFT City?

GIFT (Gujarat International Finance Tec-City) is located in Gandhinagar, Gujarat.

It consists of a multi-service Special Economic Zone (SEZ), which houses India’s first International Financial Services Centre (IFSC) and an exclusive Domestic Tariff Area(DTA). 

The social infrastructure in the city includes a school, medical facilities, a proposed hospital, GIFT City business club with indoor and outdoor sports facilities. It also includes integrated well-planned residential housing projects making GIFT City a truly “Walk to Work” City. 

What is GIFT IFSC? 

India’s first International Financial Services Centre(IFSC) has been operationalised in GIFT City. 

GIFT IFSC provides services related to capital markets, offshore insurance, offshore banking and asset management, aircraft and ship leasing, and ancillary services. 

It houses two international stock exchanges with a combined average daily trading volume of over $11 billion. Soon, an international bullion exchange is also going to be launched.

Note: An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders.

What are the Foreign Universities present in the GIFT IFSC?

The Government of India has recently announced permitting campuses of foreign universities in GIFT IFSC, free from domestic regulations. This has created a buzz globally. Many Australian, UK and US-based universities have shown an interest in establishing their presence in GIFT IFSC.