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Source: The post is based on the article “Panel to moot ways to lure Indian startups back to India” published in The Hindu on 22nd March 2023
What is the News?
The International Financial Services Centres Authority(IFSCA) has formed a committee to design a road map to attract Indian start-ups to set up bases in GIFT City and not have their domicile in other nations.
Why are Indian Startups based outside India?
Many Indian start-ups are domiciled outside India, despite having the majority of their market, personnel, and founders here. These ‘externalized’ or ‘flipped’ start-ups constitute a large number of India’s unicorns.
For start-ups, a friendlier business environment, easier access to cheaper capital and talent as well as an openness to emerging fields such as crypto, fintech are the primary attractions abroad. As per Henley & Partners’ ranking, Singapore and UAE are the top choices at the moment for entrepreneurs.
What is IFSCA doing to attract Indian startups to set up based in GIFT City?
IFSCA has formed a committee headed by former RBI Executive Director G Padmanabhan.
The terms of reference for the committee include: 1) measures required to encourage the Indian fintech firms and start-ups domiciled abroad to relocate to GIFT IFSC, 2) To identify issues that are critical to the development of GIFT IFSC as a global fintech hub, and 3) To encourage new fintech firms to have a global outlook to set up their commercial presence in GIFT IFSC.