The New India

GIFT IFSC: Emerging as a preferred new age global financial centre https://www.giftgujarat.in/

By Dr Dipesh Shah, Executive Director (Development) at International Financial Services Centres Authority (IFSCA), GIFT City.

The Government of India implemented a major financial sector reform by establishing the country's maiden International Financial Services Centre (IFSC) in GIFT City, Gujarat. The IFSC has been developed as a unique international financial jurisdiction within onshore India, which has been designated as a non-resident zone under the Foreign Exchange Management (FEM) Act. This special status enables financial transactions to be carried out in any of the notified fifteen foreign currencies, including USD, GBP, Euro and Yen. The IFSC has been set up with two primary objectives namely:

a) Onshoring India-centric international financial services business, and,

b) Serve as a preferred gateway for channelizing global capital flows into and out of the country.

Over the last few years, GIFT IFSC has made remarkable progress in positioning itself as a 'New Age Global Financial Centre,' providing an ideal platform for the global financial services industry to integrate more efficiently with the Indian economy. A key landmark in IFSC's journey so far has been the establishment of the International Financial Services Centres Authority (IFSCA) as a unified statutory body for the development and regulation of IFSCs in India. Since October 2020, IFSCA has assumed its statutory powers and has notified over 29 regulations and more than 14 frameworks encompassing the entire spectrum of financial services, including - banking, capital markets, insurance, the fund industry, fintech, aircraft leasing, ship leasing, and global corporate treasury centers. The Government endeavours to develop GIFT IFSC as an internationally recognised financial centre with trusted business regulations, competitive tax regime and ease of doing business.

Today, the GIFT IFSC initiative is a testament to India's firm resolve to undertake bold and transformative reforms in the financial sector. This ambitious project is envisaged to catalyse global capital flows into the country and accelerate the integration of the Indian economy with the global financial ecosystem. As of July 2024, more than 600 + entities across banks, capital markets, insurance, fintech, aircraft leasing, ship leasing, bullion exchange, etc. have been registered with the IFSCA. The financial service market is gaining momentum with healthy and growing participation of global and domestic financial services institutions. Following sectors are some of the major highlights of the GIFT city:

• Banking Sector: The Banking ecosystem in GIFT IFSC is rapidly evolving with a healthy mix of foreign and domestic banks, primarily catering to the foreign currency borrowing requirements of Indian corporates and public sector enterprises through external commercial borrowing, trade finance, etc. Transactions under these heads, previously booked from overseas financial centres are now being booked out of GIFT IFSC. As of March 2024, the total asset size of IFSC Banking Units (IBUs) crossed USD 60 billion, and the cumulative value of transactions undertaken by IBUs crossed USD 795 billion.

• Fund Industry: The growth of a robust fund industry in GIFT IFSC is has a transformative impact in catalysing global capital inflows into India, including for the start-up ecosystem. Previously, pooling of international capital for investments in India was structured through funds (private equity, venture capital, hedge funds, etc.) set up in offshore jurisdictions. Now, with enabling regulations, a competitive tax regime, and beneficial cost of operations, GIFT IFSC is emerging as a preferred jurisdiction for the pooling of global capital by foreign and Indian fund managers. In the last three years, there has been rapid growth in Fund Management Entities (FMEs) and Alternative Investment Funds (AIFs) registered with IFSCA. The cumulative FMEs and funds registered rose from 39 and 33 in September 2022 to 114 and 120, respectively, in March 2024.

• Aircraft Leasing: The aviation industry in India is on the cusp of unprecedented growth, with a strong order book of more than 1500 + aircraft placed by Indian airlines and a projected demand for over 2,200 aircraft by 2042. Currently, most aircraft operated by Indian airlines are leased from offshore lessors that have access to competitive capital costs. The aircraft leasing and financing business, the most profitable segment in the aviation value chain, was entirely residing in foreign jurisdictions. Recognising the immense potential of aircraft leasing and financing business, IFSCA introduced the enabling leasing framework, and the Government supported the endeavour by providing several tax incentives. In three years, green shoots have been visible in IFSC with more than 28 aircraft lessors already registered. These have leased more than 120 + aviation assets, including commercial aircraft, helicopters, aircraft engines and ground support equipment.

• Foreign universities initiative: The IFSC, being an offshore jurisdiction is uniquely positioned to become an 'International Higher Education Hub' by attracting top-quality international universities which are keen on exploring India for its talent and demographic profile. IFSCA achieved a significant milestone in FY24 when Australia's Deakin University became the first foreign university to be granted final registration for their International branch campus in GIFT IFSC under IFSCA (setting up and operation of international branch campus and offshore education centres) Regulation, 2022. University of Wollongong of Australia became the second foreign university to receive in-principal approval for their international branch campus in GIFT IFSC.

• Global In-House Centres: Globally, information technology and digital practices have facilitated the cross-border flow of services such as - accounting, auditing, taxation, book-keeping and has fuelled the growth of Global In-House Centres (GIC). GIFT IFSC, is uniquely positioned to offer such services to global clients. A leading US institution, i.e. Bank of America has already set up a large GIC unit in GIFT IFSC, which is providing in-house support services to the bank's global operations. Several other international firms are now looking at the GIC opportunity in GIFT IFSC.

GIFT IFSC is slated to play a significant role in achieving the vision of a developed India@2047.

Nalanda: The Earliest-known University https://nalandauniv.edu.in/

By Prof. Benoy K Behl, Art Historian, Filmmaker and Photographer

At the ancient university of Nalanda, there was a spirit of vibrant intellectual thought, a climate of discussion and debate. The many 'acharyas', or learned professors, at Nalanda authored hundreds of works on philosophy, metaphysics, psychology, logic, medicine, astrology, arts, literature and other subjects. The study at Nalanda was of life itself and what is reality. It was based not upon faith but on unshakable logic and pursuit of the truth. The study was of our minds, our perceptions and what is knowledge itself. The intellectuals here analysed the qualities which led to Enlightenment through knowledge and sought to create a logical path which could lead us to true and lasting awareness. A path which would work for all.

This was the first known, great university of the world. Nalanda was also at the apex of a consortium of universities which developed in ancient and early medieval times in South and Southeast Asia. It was from these ancient universities that concepts of rigorous and logical study finally spread to other parts of the world, leading to the founding of universities in Europe. The consortium of universities with Nalanda at its apex, included: Vikramshila, Odantapuri, Somavihara Paharpur, Sumatra Indonesia, Takshashila, Palkh (now in Afghanistan). Nalanda was the earliest-known University in the world and this was the first consortium. It is quite amazing to see that such study and sharing of universal knowledge took place in the First Millennium.

Nalanda in the 21st century

The Government of India is making a notable effort to revive the real legacy of Nalanda, so that people can see the value of this tradition and how it enriches the tapestry of global knowledge. What is more, the comparative study of the Nalanda tradition, and modern science can definitely uplift our civilisation. This ancient tradition is a science of life which can help us so much. The honourable Prime Minister of India inaugurated the new campus of Nalanda University, an international university, close to the site of the ancient ruins of Nalanda, in Bihar, on the 19th of June, 2024.

Photo - Nalanda University archives

The modern Nalanda University was established as an "international institution for pursuit of intellectual, philosophical, historical and spiritual studies". The impetus to setting up this institution came under the leadership of Hon. Prime Minister Shri Narendra Modi, when a major push was given from 2014 onwards, to establishing the University as an international center of learning and scholarship, reminding the world of the 21st century of the eminence of ancient Nalanda. This international university, apart from India, has participation of 17 other nations: Australia, Bangladesh, Bhutan, Brunei Darussalam, Cambodia, China, Indonesia, Laos, Mauritius, Myanmar, New Zealand, Portugal, Singapore, South Korea, Sri Lanka, Thailand and Vietnam.

Photo - Nalanda University archives

The University has 137 scholarships for international students. It offers Post Graduate and Doctoral research courses and short-term certificate courses. It has 6 schools, the School of Buddhist Studies, Philosophy & Comparative Religions; the School of Historical Studies; the School of Ecology and Environmental Studies; the School of Sustainable Development and Management; the School of Languages and Literature; and the School of International Relations and Peace Studies which is yet to commence. A Library with a capacity to hold 3,00,000 Books and serving up to 3000 users is scheduled to be completed by September 2024. This would be in keeping with the glorious tradition of the original Nalanda University.

Ancient Nalanda

The best-known Buddhist universities, Nalanda, Vikramasila and Odantpuri, were in Eastern India, in the region of present-day Bihar. The greatest of these centres of study was at Nalanda. It was a hub of learning where pilgrims and scholars came from all corners of Asia.

Nalanda University, Bihar. The university of Nalanda was one of the greatest centres of learning that the world has seen from the 4th to the 12th centuries. Photograph by Benoy K Behl

Nalanda was visited by the Buddha himself. In the 3rd century BCE, Emperor Ashoka is believed to have made offerings to the chaitya of Sariputra and erected a temple here. However, the origins of the university itself are obscured in the mists of time. The medieval Tibetan historian Taranatha mentions that the great Buddhist philosopher Nagarjuna who was born in the middle of the 2nd century CE taught here. Excavations at the Nalanda site have revealed numerous stupas, monasteries, hostels, staircases, meditation halls and other structures. These speak of the splendour of the university which was also famed for its three magnificent libraries.

The Chinese pilgrim Xuanzang of the 7th century writes that, of the myriad Buddhist establishments of India, Nalanda "is the most remarkable for its grandeur". The priests and other residents "always reach to the number of ten thousand". Another Chinese traveller I-Tsing travelled in India at the end of the 7th century. He reported that in these monasteries Buddhist sutras were taught as well as Sanskrit grammar, Indian Logic and Metaphysics, fine arts and medicine. There was a rigorous oral entry examination and only the best students were given admission. It was a residential university where the staff and students had free board and lodging. No tuition fees were charged. Xuanzang records that there were students here from Tibet, China, Korea, Japan, Sumatra, Java and Sri Lanka. It was truly an international university. The highest intellectual atmosphere of debate and scholarship was maintained at the Nalanda university. This was the thriving intellectual environment of Nalanda which produced the most notable Buddhist thinkers who brought about significant developments in Buddhism.

Well known Intellectuals of Nalanda

The most revered name in Mahayana Buddhist philosophy is that of Nagarjuna who was born in the middle of the 2nd century CE, in South India. He was a luminary of the Nalanda University and he formalised the concept of Sunyata or 'Emptiness'. The Madhyamika School of Buddhism, or 'The Middle Path', was created on the teachings of Nagarjuna. Dinnaga of the Nalanda University was born at Kanchipuram in South India. He lived in the 5th century and is known as the founder of the system of Buddhist Logic. He authored over a hundred treatises on the subject, most of which are still preserved in Chinese and Tibetan translations. When Xuanzang visited Nalanda, he studied under the famed guru Dharmapala. The teacher was also known for having spread the knowledge of Buddhism in Indonesia.

One of the noted students of Dharmapala was the brilliant logician Dharmakirti. He lived in the 7th century and was born at Tirumalai in South India. Dharmakirti's writings mark one of the highest points reached in speculative philosophy. The learned Santaraksita of the Nalanda University founded the first monastic order in Tibet. He also modelled Samye, the first monastery of Tibet, on the Odantpuri Mahavihara in Eastern India. At his suggestion, the Tibetan king also invited Guru Padmasambhava, who was then teaching in the region of Kashmir at that time. Padmasambhava, who was also of the Nalanda University, went on to become the most revered person in the entire Himalayan and trans-Himalayan region, where he is known as the 'The Second Buddha'. The Guru swept across the mountains, establishing Buddhism in Ladakh, Lahaul-Spiti, Kinnaur, Tibet, Bhutan and Arunachal Pradesh. Atisa or Dipankara Srijnana (980-1054) was born in East Bengal, studied at Nalanda University and then became one of the leading teachers at the University of Vikramshila, also in Bihar. He was invited to Tibet by King Yeshe 'Od and he accepted his invitation at the age of 60, in CE 1040. He left Vikramshila and stayed in Tibet until his death. He consolidated the true knowledge of Buddhism in that land.

The Art of Nalanda

Nalanda marks the beginning of the Pan-Indian medieval idiom in art. The perfected human form was created in Indian art by the 5th century CE, to help in meditation and to awaken the grace within us. At Nalanda, in the post-Gupta period, the focus came on the dynamism of the intellect, which analyses in acute detail the qualities which lead to nirvana. This is seen reflected in the vitality and sharp features of the stucco sculptures found at Nalanda. The figures have a greater stylization than in earlier Indian art. Angular and dynamic relief made in the plinth of stupas was a common feature during the Pala period. This is found beginning at Nalanda and spreading across Eastern India and Bangladesh, going up to Tripura, where it is seen in the remains of the Pilak stupa in Udaigiri District. The educational and cultural legacy of the Nalanda University is remarkable.