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Develop more GIFT City-like Financial Centers in major metro cities: Standing Committee on Finance | Current Affairs | Vision IAS
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Develop more GIFT City-like Financial Centers in major metro cities: Standing Committee on Finance

Posted 05 Aug 2025

2 min read

India’s first and only International Financial Services Centre (IFSC) was established within Gujarat International Financial Tec City (GIFT City).

About GIFT City IFSC (Gandhinagar, Gujarat)

  • It was established as a Special Economic Zone (SEZ) in 2015. Designated as a non-resident zone under Foreign Exchange Management Act (FEMA).
    • IFSC is a jurisdiction that provides onshore and offshore financial services to non-residents and residents (institutions), in a foreign currency.
  • Functions: 
    • Favorable tax structure: Offer cross-border financial products and services within a competitive tax environment.
    • Trusted regulatory environment: Provide onshore talent with an offshore technological and regulatory framework. 
    • Ease of doing business: Facilitates movement of international financial services based on global standards, promotes inbound and outbound investment to India.
  • Regulatory body: International Financial Services Centres Authority (IFSCA) regulates financial products, financial services and financial institutions in IFSCs in India.
    • Established in 2020 under the IFSCA Act, 2019.
  • Current Status: GIFT-IFSC ranked 46th in the Global Financial Centres Index (a 5-rank improvement); ranked 45th in the FinTech rankings (a 4-rank improvement)

Committee’ Recommendations

  • Establish satellite financial innovation zones or fintech clusters: Region-specific models in major cities to foster inclusive growth, create talent pools and attract diverse investors.
    • E.g. BRICS nations like China with 10 Centres, possess multiple financial hubs.
  • Streamlining of policies: Improving transparency, fostering financial education, enhancing digital infrastructure and  regulatory sandboxes.
  • Other: Simplification of  taxation regimes, reducing compliance burden, etc.
  • Tags :
  • International Financial Services Centre (IFSC)
  • GIFT City
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