IFSC can become gateway to India growth story for global investors: Interim report

IFSC has the potential to become gateway to the India growth story for international investors and business, a committee said in its interim report. Last month, the newly created International Financial Services Centres Authority (IFSCA) constituted a seven-member committee to suggest ways to enhance international retail participation in IFSC.

The committee, headed by Indasia Fund Advisors Chairman Pradip Shah, in its interim report suggested that IFSC can aim at becoming the gateway to India growth story for international investors and business. It should look at providing Indian diaspora and individuals from Asia and Africa with a comprehensive range of financial services from IFSC and serving domestic residents availing liberalised remittance scheme, according to an official statement by IFSCA.

Further, it said the IFSC with its approach of 'FinServe from IFSC' would complement the 'Make in India' vision of the government. "There is immense immediate potential to promote international retail business in IFSC, and if done efficiently, it will meet three key objectives — boost job creation, generate additional revenue for India, and attract funds (especially from the Indian diaspora) for building India's infrastructure," Shah said.

He added that IFSC must aim to provide best-in-class jurisdictions and aim to build its competitiveness in terms of key factors like reputation, regulatory environment, taxation and ease of operations. The expert committee was constituted by IFSCA with an aim to suggest how to develop international retail business in the International Financial Services Centre (IFSC) along with potential strategies for making IFSC attractive for international financial services. The panel was also to provide a road map for future growth of international retail business in IFSC; and also examine and recommend any other issues that are important in the development of IFSC.

Speaking of the vision for GIFT IFSC, IFSCA Chairperson Injeti Srinivas said, "Our focus is to provide a best-in-class jurisdiction with progressive and light touch regulation to create an attractive location for international financial services." He added that his vision is to establish GIFT IFSC as a "dominant gateway" for global financial flows into and out of India, and simultaneously emerge as a major global financial hub. Earlier this year, the government constituted the IFSCA with Srinivas as its chairperson to develop and regulate the financial services market in IFSC in India.

Apart from channelising India's offshore business to IFSC located at the GIFT City and making it the gateway for India-centric international financial services, the objective is to make it a global hub for international financial services on the lines of London, Hong Kong, Singapore, and Dubai.

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