Gandhinagar: Finance Minister Nirmala Sitaraman today in her budget speech for financial year 2021-22 announced that the Government would support the development of a world class
Fin-Tech hub at the GIFT-IFSC based at Gandhinagar in Gujarat.

Making an announcement she said, “the Government is committed to make the International Financial Services Centre (IFSC) in GIFT City a global financial hub. In addition to the tax incentives already provided, I propose to include, among others, tax holiday for capital gains for aircraft leasing companies, tax exemption for aircraft lease rentals paid to foreign lessors; tax incentive for relocating foreign funds in the IFSC; and to allow tax exemption to the investment division of foreign banks located in IFSC.”

Mr. V Balasubramaniam, MD & CEO, India INX in his reaction to the announcement said, “India INX welcomes the budget announcement on allowing debt financing of REITs/InvITs by FPIs and is well poised to providing listing and trading of these products on the Exchange with considerable ease of business and quicker time to market for issuers and tax efficient trading for foreign investors across time zones with 22 hours non-stop trading. Further, the FM’s announcement to exempt taxes on dividends on REITs and InvITs will make them attractive and lucrative for investors. This Budget also saw the government’s strengthened support to make GIFT IFSC one of the leading international financial centres at par with London, New York, Hong Kong, Singapore and Dubai. The additional tax holidays to aircraft leasing companies and those relocating foreign funds to IFSC-GIFT along with setting up of a new fintech hub will drive more players to GIFT IFSC, boost investor confidence and give an impetus to the GIFT City project.”

Mr. Tapan Ray, MD & Group CEO, GIFT City said, “The slew of tax incentives announced for GIFT IFSC in today’s Union Budget have once again reaffirmed the Govt. of India’s commitment to develop GIFT IFSC as a global financial hub. The tax announcement would help in attracting global players in the Fund business, aircraft leasing & financing business and offshore investment banking sector to set up their base in GIFT IFSC. We thank the Government of India for continuously bringing in measures to facilitate businesses at GIFT IFSC.”

He further added, “The development of world-class Fintech hub at GIFT City announced in todays’ budget will go a long way in promoting and developing Fintech start-ups. GIFT City would provide a platform to Fintech firms to expand globally. The Fintech hub will facilitate research, innovation and development of new age skills in fintech which will help in creating new job opportunities and attract quality talent to GIFT City”