Expert committee submits report on 'Onshoring Indian Innovation to GIFT IFSC'
Aug 26, 2023
New Delhi [India], August 26 : The Committee of Experts appointed by the International Financial Services Centres Authority (IFSCA) to explore 'Onshoring the Indian Innovation to Gujrat International Finance Tec-city International Financial Services Centre (GIFT IFSC)' has presented its findings to the chairperson of IFSCA.
Chaired by G. Padmanabhan, former executive director of the RBI, the committee consisted of representatives from prominent venture capital funds, startups, fintechs, law firms, tax firms, and domain experts.
The primary objectives of this committee were to investigate the reasons behind Indian startups relocating outside India, propose solutions to prevent future externalisation of startups, and encourage those presently externalised to return.
The committee's recommendations are for GIFT IFSC's development as a global Fintech Hub. They include measures to attract new Fintech companies with a global perspective to establish their commercial presence in GIFT IFSC, read the Ministry of Finance press release.
The committee also identified challenges and proposed measures for the growth of the International Innovation Hub at GIFT IFSC.
The report outlines various actions that should be undertaken by various stakeholders, including ministries and regulatory bodies, to bring Indian innovation back to GIFT IFSC.
In the report, the committee provides an in-depth comparison of India's approach to holding company setups with leading jurisdictions such as Singapore, the Netherlands, and Luxembourg, which have successfully implemented similar setups.
The release read, by highlighting the advantages and addressing potential challenges associated with holding company regimes, the report underscores the reverse flipping to bolster India's economic development.
The committee recommends aligning tax and regulatory laws within the IFSC with international best practices to create an environment that actively encourages and supports holding company structures, read the release.
The report also delves into the factors that influence Indian founders to establish companies in overseas jurisdictions.
The Committee is optimistic that its insights will stimulate dialogue within the ministry and contribute to achieving the Prime Minister's vision of making India a 5 trillion-dollar economy and a global powerhouse by 2024-25.
G. Padmanabhan, the Committee Chair, expressed his gratitude to IFSCA for the opportunity to work on this significant issue.
