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The GIFT City, India's first International Financial Services Centre (IFSC), is located in:
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Answer: Option C — Gujarat
Detailed Solution
GIFT City (Gujarat International Finance Tec-City) is located near Gandhinagar, the capital of Gujarat, on the banks of the Sabarmati river.
About GIFT City:
- It was conceived in 2007 by the Government of Gujarat as a global financial and IT services hub.
- It is being developed by Gujarat International Finance Tec-City Company Limited (GIFTCL), a joint venture of the Government of Gujarat and other partners.
- It is India's first operational "smart city" and a "greenfield" city with modern infrastructure, such as a district cooling system, an automated waste collection system and underground utility tunnels.
It includes India's first International Financial Services Centre (IFSC), which works as a special economic zone for financial services. It allows Indian and foreign companies to offer international financial services (in foreign currency) from Indian soil, with favourable tax and regulatory rules.
Regulator:
The International Financial Services Centres Authority (IFSCA) was set up in April 2020 under the IFSCA Act, 2019. It is a unified regulator for all financial services in IFSCs in India. Its headquarters is in GIFT City.
Before IFSCA, the RBI, SEBI, IRDAI and PFRDA separately regulated activities in the IFSC.
Institutions in GIFT City:
- India International Exchange (India INX): set up by the BSE in 2017; India's first international stock exchange.
- NSE International Exchange (NSE IX).
- India International Bullion Exchange (IIBX): India's first international bullion exchange, launched in 2022.
- "GIFT Nifty": derivatives trading on Nifty, which moved from Singapore (SGX Nifty) to GIFT City in July 2023.
- Branches of many Indian and foreign banks, insurance companies, fintech firms and fund managers.
Other financial centres:
- Mumbai is the "Financial Capital of India" and houses the RBI, SEBI, BSE and NSE headquarters.
- International financial centres around the world include London, New York, Singapore, Hong Kong and Dubai.
Why not the other options?
- ✗Maharashtra has Mumbai, India's financial capital.
- ✗Karnataka has Bengaluru, India's IT capital.
- ✗Telangana has Hyderabad, a major IT centre ("Cyberabad").
Quick tip
Remember: GIFT City = Gandhinagar, Gujarat (India's first IFSC and smart city; regulator IFSCA, 2020; India INX 2017; IIBX 2022; GIFT Nifty 2023).
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Financial Markets & Institutions — Preparation
This question tests your understanding of Financial Markets & Institutions, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers India's financial institutions and markets: regulators such as SEBI, IRDAI and PFRDA, development banks such as NABARD, SIDBI and EXIM Bank, the money market and capital market, stock exchanges and indices, insurance, and microfinance and self-help groups. Questions usually ask what each regulator oversees, where institutions are headquartered, and what market terms mean (bull and bear markets, IPO, Sensex and Nifty). For example, NABARD supports agriculture and rural development, SIDBI supports small industries, and SEBI regulates the securities market. Practise the financial markets and institutions questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.