SMBC Approved for GIFT City Branch in Gandhinagar

By siliconindia  |  Friday, March 29, 2024

SMBC Approved for GIFT City Branch in Gandhinagar
Japan's Sumitomo Mitsubishi Banking Corp. (SMBC) has secured approval to establish a branch in the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, facilitating smoother channels for Japanese investments into India amid reduced regulatory barriers.
GIFT City, nestled within a special economic zone, serves as a hub to foster exports and attract foreign investments, particularly from multinational entities. The Indian government's strategic measures, such as zero withholding tax on offshore-foreign currency-denominated borrowing from outside India, have bolstered its appeal. Despite restrictions on extending foreign currency-denominated loans within India, leveraging offshore-foreign currency-denominated borrowing has proven effective.
In a statement, SMBC expressed its anticipation of utilizing GIFT City to manage offshore business activities related to India domestically, thereby enhancing its ability to address the evolving needs of its clientele.
Having witnessed banking assets surge past $52 billion as of January, GIFT City stands as India's premier smart city, housing a financial offshore special economic zone in Gujarat. Currently hosting 11 international banks alongside 16 domestic counterparts, the city continues to evolve as a pivotal financial destination, poised to catalyze further economic growth.

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