NEW LEGISLATION TO REPLACE SPECIAL ECONOMIC ZONES ACT

WORLD-CLASS FOREIGN UNIVERSITIES IN GIFT CITY TO OFFER COURSES, LARGELY FREE FROM DOMESTIC REGULATIONS

INTERNATIONAL ARBITRATION CENTRE TO BE SET UP IN GIFT CITY

GIFT CITY TO FACILITATE SERVICES FOR GLOBAL CAPITAL FOR SUSTAINABLE & CLIMATE FINANCE IN THE COUNTRY

“The Special Economic Zones Act will be replaced with a new legislation that will enable the states to become partners in Development of Enterprise and Service Hubs”, said the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget for 2022-23, in Parliament today. She added that this would cover all large existing and new industrial enclaves to optimally utilize available infrastructure and enhance competitiveness of exports.

She also proposed various initiatives to make GIFT City more attractive.

GIFT-IFSC

The Finance Minister proposed that World-class foreign universities and institutions would be allowed in the GIFT City to offer courses in Financial Management, FinTech, Science, Technology, Engineering and Mathematics free from domestic regulations, except those by IFSCA to facilitate availability of high-end human resources for financial services and technology.

Smt. Sitharaman also proposed an International Arbitration Centre which would be set up in the GIFT City for timely settlement of disputes under international jurisprudence. Further, she said that services for global capital for sustainable & climate finance in the country would be facilitated in the GIFT City.

Special Economic Zones replacement enables state partnership and expands GIFT City regulatory autonomy for financial services. Replacement legislation will reframe large industrial enclaves as state-partnered Enterprise and Service Hubs to optimise infrastructure and boost export competitiveness. For GIFT City, proposals permit world-class foreign universities to offer financial, fintech and STEM courses largely free from domestic regulations except oversight by the designated financial regulator; establish an International Arbitration Centre for disputes under international jurisprudence; and facilitate services for global capital in sustainable and climate finance.