IFSC is not a new concept however in India it has become popular in last 10 years because of opening of establishment of The GIFT International Financial Services Centre (GIFT IFSC) in Gujarat International Finance Tec-City (GIFT City).
Many IFSCs are already present globally such as Shanghai and Dubai. London, New York and Singapore are also counted as global financial centers.
Now, let us discuss the key features of an IFSC:
- They do Asset management and wealth management of global customers.
- Global Tax Management
- Give services of Risk Management of world-wide scale.
- Helps individuals, companies and other entities to raise funds from other countries.
- Facilitate international activity
- Provide support services to international clients such as in accounting, taxation, technology and outsourcing.
- Basically, they act as a bridge between different countries for doing various kinds of transactions.
- They also provide global insurance services.
The scale of operations of IFSC is expanding in recent past and they are venturing into many other activities as well.
Why IFSC is important for a country?
It is seen that because of presence of a number of IFSCs, USA has used it as diplomatic weapon on many occasions. Secondly, in order to sustain as a financial and economic power in the world of open economy, it is important for every country to have such centers.
So, it is another step to becoming a Giant Economy and move faster towards becoming a developed economy.
