What is GIFT City?
India holds quite a prominent financial position in the global landscape. However, to put the country at the forefront in the global financial system, the Gujarat International Finance Tec-City or GIFT City was established. Housing India’s first International Financial Services Centre (IFSC), GIFT City will serve as a financial and information technology (IT) hub for a multitude of corporations, both domestic and international.
GIFT City is ranked 1st among the top 15 Global Financial Centre and 1st in reputational advantage in the Global Financial Centres Index 28. The city is developed on 886 acres of land on the bank of River Sabarmati, with 67% of the space reserved for commercial space, 22% for residential and 11% for social facilities.
Importance of GIFT City
GIFT City is envisaged to become a centre of excellence in the world’s financial hubs. It provides a conducive regulatory environment for seamless business operations.
GIFT City is also an important centre for gold trade in India. India’s very own International Bullion Exchange, the Indian International Bullion Exchange (IIBX) was established at GIFT City. IIBX is promoted by the National Stock Exchange (NSE), India International Exchange (INX), Multi Commodity Exchange (MDX), National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
GIFT City also houses the International Financial Services Centres Authority (IFSCA). IFSCA is a unified regulator that regulates the financial institutions at GIFT City and their products and services. The IFSCA has combined the regulatory powers of India’s top financial services regulators, the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA) and Insurance Regulatory and Development Authority (IRDA).
GIFT City: Features & Benefits
Here’s why businesses should consider establishing their offices in GIFT City:
GIFT City is strategically located between the business capital, Ahmedabad, and the political capital, Gandhinagar. The city is also in close proximity to major transit systems, including the Ahmedabad International Airport, bullet train terminus, railway station and metro.
The Government of Gujarat will not levy stamp duty and registration charges for business who want to establish their office in GIFT City. Additionally, the state government also provides incentives such as Employee Provident Fund (EPF) reimbursement, lease rental subsidy, power subsidy, etc.
- Plug and play infrastructure
GIFT City comprises ready-to-use utilities that are also energy efficient. This way, you can reduce the otherwise time-consuming construction process, allowing for a quick set up. This type of infrastructure can also help you reduce costs.
Units in IFSC are 100% exempt from income tax for 10 consecutive years out of 15 years. Funds lent to such units will be non-taxable. For investors, the tax benefits include exemption from GST for transactions carried out in the IFSC exchanges, exemption from Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) and more.
With GIFT City, there will be no dearth of talented workforce. The city is surrounded by premium educational institutions such as Indian Institute of Management (IIM) Ahmedabad, National Institute of Design, etc.
Know more about GIFT City and what it has to offer with HDFC Bank GIFT City.
References:
https://assets.giftgujarat.in/downloads/Gift+City+Brochure.pdf
https://www.giftgujarat.in/business/ifsc?tab=Tax%20Incentives
