Axis Bank Executes Air India Aircraft Financing Deal via GIFT City

Why in news?

Axis Bank has successfully executed Air India's aircraft financing deal through its International Banking Unit at GIFT City IFSC, marking India's first such transaction. The deal was executed on behalf of AI Fleet Services, a wholly owned subsidiary of Air India, a Tata Group company.

What is GIFT City?

Gujarat International Finance Tec-City (GIFT City) is India's first greenfield smart city and an international financial services center (IFSC) located in the Ahmedabad district, Gujarat.

Key Highlights of GIFT City:

• First IFSC in India with world-class infrastructure.
• Governed by the International Financial Services Centres Authority (IFSCA), established in 2020.
• Strategic Business Zones:
  • Domestic Tariff Area (DTA): For domestic companies, subject to Indian regulations.
  • Special Economic Zone (SEZ): Focused on exports and foreign investments, offering tax incentives and simplified regulations.
    • SEZ PA (Processing Area) and SEZ NPA (Non-Processing Area) subdivisions.
• City Structure:
  • International Financial Services Centre (IFSC)
  • Domestic Finance Centre (DFC)
  • Multi-services SEZ
  • Residential & Social Infrastructure
  • Transit-Oriented Development (TOD)

The Role of IFSCA

The International Financial Services Centres Authority (IFSCA) is the regulatory body for India's IFSCs, headquartered in GIFT City. It oversees financial services, capital markets, banking, and insurance.

GIFT City is positioning India as a global financial hub, offering competitive advantages for businesses, including tax exemptions and streamlined operations.