MUMBAI: Finance Minister Nirmala Sitharaman has announced new initiatives for the GIFT City that will help it to emerge as a leading global financial hub. The budget has proposed extension by two years the sunset clause granting certain tax exemptions to foreign investment funds that are keen to relocate from overseas to IFSC-GIFT City.
The exemptions have now been extended to 31 March 2025. The budget also granted income-tax exemption to foreign investors on any income distributed on overseas direct investment entered into with IFSC Banking Units.
“The Union Budget clearly emphasises the growth aspirations of our nation and the vital role of GIFT City in India’s growth story. The policy support laid out by the Union government will certainly act as a catalyst in expediting the growth of GIFT City thus making it a vibrant global financial hub for domestic and international entities,” said Tapan Ray, MD & Group CEO, GIFT City
The government has also proposed to establish subsidiary of EXIM Bank for trade re-financing and setting up data embassies in IFSC Gift City. “For countries looking for digital continuity solutions, we will facilitate setting up their data embassies in the IFSC GIFT,” said the FM.