• International Financial Services Authority committee interim report suggested measures on how to develop international retail business in International Financial Services Centre (IFSC) along with potential strategies for making IFSC attractive for international financial services.
• IFSC caters to customers outside jurisdiction of domestic economy, dealing with flows of finance, financial products and services across borders. It provides services such as fund raising, asset management etc. SEZ Act 2005 allows setting up an IFSC in an SEZ.
• Its objective is to channelising India’s offshore business to the IFSC located at GIFT City and making it gateway for India-centric international financial services.
• Providing Indian diaspora and individuals from Asia and Africa with a comprehensive range of financial services from the IFSC.
• Serving domestic residents availing liberalized remittance scheme.
• Aim to build its competitiveness in terms of key factors like reputation, regulatory environment, taxation and ease of operations.
• Report says IFSC retail business can boost job creation, generate additional revenue for India, and attract funds (especially from the Indian diaspora) for building India’s infrastructure.
• This expert committee would cover other key business verticals — insurance, asset management and capital markets in subsequent reports.
Mains Paper 3: Economy
Prelims level: IFSCA Committee
Mains level: Highlights of the report submitted by the IFSCA Committee