Committee of Experts to ‘Onshoring the Indian Innovation to GIFT IFSC
The International Financial Services Centres Authority (IFSCA) received a report from the “Committee of Experts to Onshoring the Indian Innovation to GIFT IFSC.” The committee, chaired by Shri G. Padmanabhan, Former Executive Director of RBI, aimed to understand why Indian startups shift abroad and to prevent such externalization in the future.
The committee focused on promoting GIFT IFSC as a global fintech hub and encouraging startups to set up commercial presence there. It also suggested measures to establish an International Innovation Hub at GIFT IFSC. The report highlighted comparisons between India and successful holding company setups in jurisdictions like Singapore, the Netherlands, and Luxembourg. The report suggested aligning tax and regulatory laws within IFSC with international standards and addressing factors pushing Indian founders to overseas jurisdictions. The insights are expected to contribute to India’s economic growth and the vision of becoming a global powerhouse by 2024-25.
What was the primary objective of the “Committee of Experts to Onshoring the Indian Innovation to GIFT IFSC”?
The committee aimed to understand the reasons behind Indian startups shifting abroad and to suggest strategies to prevent externalization, encourage startups’ presence in GIFT IFSC, and develop an International Innovation Hub.
Who chaired the committee, and what was their role?
Shri G. Padmanabhan, Former Executive Director of RBI, chaired the committee, leading its efforts to investigate and provide recommendations.
What areas of development did the committee focus on regarding GIFT IFSC?
The committee concentrated on promoting GIFT IFSC as a global fintech hub, encouraging startups to establish commercial presence there, and establishing an International Innovation Hub.
What key recommendations did the committee offer to incentivize and support holding company structures in IFSC?
The report recommended aligning tax and regulatory laws in IFSC with international best practices to actively incentivize and support holding company structures.
What factors did the committee identify as pushing Indian founders to overseas jurisdictions?
The committee analyzed several push-pull factors that contribute to Indian founders opting for overseas jurisdictions for their startups.
How does the committee’s report contribute to India’s economic growth vision?
The report’s insights are expected to contribute to the vision of making India a 5 trillion-dollar economy and a global powerhouse by 2024-25, as envisioned by Prime Minister Modi.
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Month: Current Affairs - August, 2023
Category: Economy & Banking Current Affairs