Amendments in enhance business at GIFT City

February 2, 2023

The GIFT city, Gujarat International Finance Tech City is under construction. It is the first greenfield smart city in India. Today, the city is one of the major international IT and finance hubs. To boost its development, Finance Minister Smt Nirmala Sitaraman announced several measures in the Budget 2023.

What measures were introduced?

Data Embassies to be established in GIFT city for countries that are seeking digital continuity solutions
Establish an EXIM bank subsidiary in GIFT City. Through this, the foreign banks shall provide acquisition financing. Also, can aid in trade re-financing
Finance Minister proposed to make an amendment to the IFSCA Act. Demanded to avoid dual regulation under the SEZ act, asked for provisions for arbitration, and ancillary services
Powers to IFSCA under SEZ Act to set up a single window system that will facilitate registration and approval from SEZ authorities and GST authorities, SEBI, RBI, and IRDAI
Tax benefits extended to funds involved in the relocation of IFSC and GIFT City

Significance

The amendments would turbocharge the GIFT city.

Acquisition Financing: Funds provided by banks to a company to acquire other companies. Through acquisition financing, a smaller company will increase in size. Also, it shall aid in the Disinvestment policies of GoI.

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