Budget Proposals Will See GIFT City Take Off With Aircraft Leasing Biz
Thursday, February 11, 2021 10:44AM IST (5:14AM GMT)
Maharashtra, Gujarat, India:
In her budget speech, the Hon’ble Finance Minister reiterated the Government of India’s commitment to making India’s first International Financial Services Centre (IFSC), located in GIFT City, a global financial hub. In the backdrop to this intent, the Government of India has taken logical steps to encourage on-shoring of financial services, through measures which will enable the platform provided by GIFT City to effectively play its role, powering the journey of evolving into a global financial hub.
The positive and impactful measures announced by the Government of India so far have effectively, taken the regional financial centre to the stage when it is all set to morph into a global fin-tech hub. The efforts undertaken to scale up activities at the IFSC within GIFT City, which will be on par with other global IFSCs, have been tremendous. India Inc. has already been incentivized to set up its foreign offshore and onshore operations out of GIFT City IFSC premises, given the benefits available of a tax haven, unified regulatory authority, lower Minimum Alternate Tax, waived off Commodity Transaction tax and abolished Dividend Distribution taxes.
To further bolster the IFSC operations, the Hon’ble F.M, in Budget FY 2021, has proposed a 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 allowing tax exemption to the investment division of foreign banks located in the IFSC. As a result, the IFSC will see phenomenal growth, attracting new industry players given the financial benefits as also a conducive environment to fuel growth.
The budget speech announcement of setting up a world class Fintech hub at GIFT IFSC will be instrumental in accelerating its growth phenomenon. As India’s leading planned business district, GIFT City is a hub whose master plan includes office spaces, residential apartments, schools, hospitals, hotels, clubs, retail facilities and other recreational facilities.
Equipped with the latest technology and global best practices in infrastructure service delivery, the IFSC in GIFT City offers international working and living standards. It also offers a conducive multi-service special economic zone (SEZ) and an exclusive domestic area, along with India’s first IFSC. This enables GIFT IFSC to spearhead its position as a leading financial destination that attracts global investments.
For companies looking to set up their presence within the IFSC in GIFT City, Hiranandani Signature is India’s first fully functional 16 storey commercial tower. The tower has been conferred with the ‘Gold Green Rating’ under IGBC’s New Building Rating Program, and offers ready for fit-out office spaces with best infrastructure and facilities for businesses. It offers 4 lakh sq. ft. of office space that offers safety, ample natural ventilation, quality construction and structural stability. This prestigious tower houses leading players from the BFSI sector, the reinsurance sector, capital markets including BSE INX and share brokers.
Given the progressive future that the IFSC at GIFT City is all set for, Hiranandani Signature offers early mover advantage of working in a project by India’s leading pioneer developer- Hiranandani Communities. The group has a rich legacy of developing world class residential and commercial projects
Dr. Niranjan Hiranandani is CMD, Hiranandani Communities