Latest news with #GIFT
The Hindu
6 days ago
- Business
- The Hindu
Focus on infrastructure development to overcome post-pandemic growth challenges: K.N. Harilal
Kerala should focus more on infrastructure development in order to overcome the post-COVID 19 development challenges, K.N. Harilal, chairman, 7th State Finance Commission, has said. He was speaking on 'Investing for the future: Kerala, which way now,' on the second and final day of the seminar, 'Post-COVID Development Challenges and Response: Kerala through the lens of State budgets,' organised by the Gulati Institute of Finance and Taxation (GIFT ). Dr. Harilal said logistics is a major area requiring Kerala's attention. China's advancement in global trade was mainly due to the development of world-class logistics and infrastructure such as ports and highways. Unfortunately, India is lagging behind in logistics development which is also the case with Kerala, according to him. With automation, cost efficiency, and natural draft Vizhinjam International container port is positioned to capture up to 15% of India's total container traffic and rival ports such as Colombo, Singapore, and Jebel Ali, Sreekumar K. Nair, CEO, Vizhinjam International Seaport Ltd, said. Rail connectivity for the port would be ready within three years, said. K. P. Kannan, former director, Centre for Development Studies ( CDS), said unemployment among educated youth is a serious developmental crisis Kerala faces today. The percentage of unemployment among women is higher compared to men. Kerala needs to address this pressing issue very seriously, he said. Former GIFT director D. Narayanan said that the decline in the capital expenditure of Kerala is a matter of serious concern. The State's capital expenditure during 2021-22 was ₹17,000 crore which dropped to ₹15,500 crore during 2024-25, he said. Senior economists and planning experts addressed the seminar over the two days.
New Indian Express
6 days ago
- Business
- New Indian Express
US trade war poses threat to Kerala's key exports: Finance minister K N Balagopal
THIRUVANANTHAPURAM: The US trade war against countries poses a serious threat to world trade and global economy, and its consequences could be especially damaging for Kerala's export-driven sectors, Finance Minister K N Balagopal said on Tuesday. Products like marine goods, spices and tea — major export items from Kerala — would be hit hard if the US goes ahead with a proposed 25% tariff on Indian goods, he warned at a seminar on 'Post-Covid development challenges and response: Through the lens of Kerala budgets', organised by the Gulati Institute of Finance and Taxation (GIFT). Balagopal said developed countries such as the US and Australia have been mounting pressure on the Union government to open up the Indian market for agricultural and dairy imports. Reports indicate Australia can sell milk in India at `30 per litre. If cheaper milk is allowed into the Kerala market, local dairy farmers will be in serious trouble, he said. Balagopal also termed claims that Kerala is in a debt trap and that its total debt has risen to `6 trillion as 'absolutely baseless'. 'Some so-called experts are spreading false information about Kerala's debt position through social media,' he said, adding that the state's total debt by the end of FY 2025-26 would be around `4.7 lakh crore. 'Based on a trend seen over the past three decades, Kerala's debt has doubled every five years. Had that pattern continued, it would have already crossed `6 trillion,' he said.
New Indian Express
7 days ago
- Business
- New Indian Express
US tariff war poses threat to Kerala's key exports, says Finance Minister K N Balagopal
THIRUVANANTHAPURAM: The US trade war against countries across the globe poses a serious threat to world trade and the global economy, and its consequences could be especially damaging for Kerala's export-driven sectors, K N Balagopal, the state finance minister, said here on Tuesday. Products like marine goods, spices and tea — major export items from Kerala — would be hit hard if the US goes ahead with a proposed 25 per cent tariff on Indian goods, he warned. He was inaugurating a seminar on Post-Covid Development Challenges and Response: Through the Lens of Kerala Budgets, organised by the Gulati Institute of Finance and Taxation (GIFT). Balagopal said developed countries such as the US and Australia have been mounting pressure on the Union government to open up the Indian market for agricultural and dairy imports. Reports indicate that Australia can sell milk in India at Rs 30 per litre. If cheaper milk is allowed into the Kerala market, local dairy farmers will be in serious trouble, he said. The minister also criticised the campaign that Kerala is in a debt trap, with claims that the state's total debt has risen to Rs 6 trillion. 'This is absolutely baseless. A section of so-called experts is spreading false information about Kerala's debt position through social media,' he said. The state's total debt by the end of FY 2025-26 would be around Rs 4.7 lakh crore. Based on a trend seen over the past three decades, Kerala's debt has doubled every five years. Had that pattern continued, it would have already crossed Rs 6 trillion, he said.
The Hindu
7 days ago
- Business
- The Hindu
Tariff war will worsen economy more than COVID-19 pandemic: Kerala Finance Minister K.N. Balagopal
Kerala Finance Minister K.N. Balagopal has warned that Kerala needs to prepare well to tackle the 'tariff war' looming over the economy, propelled by the recent tariff policies of the United States and other global players. Mr. Balagopal was speaking after inaugurating a two-day seminar 'Post-COVID Development Challenges and Response: Kerala through the lens of State budgets' organized by the Gulati Institute of Finance and Taxation (GIFT) in Thiruvananthapuram on Tuesday (August 5, 2025). 'It has to be examined how these policies impact the Indian economy and specifically Kerala, whose exports cover multiple sectors,' he said. The Finance Minister suggested that the academic community organise a roundtable discussion on the implications of these policies for India and Kerala to generate clarity on what lies ahead for the economy. 'Dangerous situation' ahead Mr. Balagopal said he perceived a 'dangerous situation' ahead, referring to recent demands that 'India should reduce its tariffs.' 'The tariff war looming over us will worsen our economy further,' he said, adding that the influx of imports at low tariffs would create an economic situation 'much worse than the COVID-19 pandemic.' M.A. Oommen, eminent economist and Distinguished Professor at GIFT who chaired the session, underscored the need for Kerala to focus on the protection and conservation of its rich biodiversity, tackle the spectre of corruption and nurture the public sector enterprises. Mr. Oommen lauded Mr. Balagopal for an 'excellent linear programming exercise' in steering Kerala's economy through a period of fiscal stress. Pointing out that major challenges lay ahead for the economy in the years ahead, he urged Left democratic forces to rise up to the occasion. C. Balagopal, chairman, Kerala State Industrial Development Corporation (KSIDC), said current policies and public finance constraints should be understood within the framework of whether government policies are promoting the growth of value addition in sectors, and what needs to be done to generate more value addition in them. 'How the sectoral distribution of the gross state domestic product (GSDP) and the State meeting total factor productivity (TFP) are pertinent questions,' he said. Additional Chief Secretary (Finance) K.R. Jyothilal, GIFT director K.J. Joseph and GIFT registrar Saraf A. also spoke. Senior economists and planning experts are attending the seminar which focusses on development issues that Kerala has been facing since the pandemic.
Economic Times
04-08-2025
- Business
- Economic Times
VCs flocking to GIFT City to tap global investment opportunities
More Indian venture capital firms are setting up offices in Gujarat International Finance Tec-city, GIFT city for short, as this makes it easy for funds to invest in overseas startups and offers an alternative to offshore routes such as Mauritius, several investors told ET. Multiple VCs ET spoke to have either set up in GIFT City or evaluating the region even as more Indian founders move to the US. VC firms that have set up in the region include Blume Ventures, 3one4 Capital, Stellaris Venture Partners, A91 Partners, and Z47, which opened its first office in GIFT City recently. Private equity firms such as Kedaara Capital and Multiples have set up in the region as well. Vinod Shankar, managing partner, Java Capital, said that they are exploring GIFT city as they are looking to raise funds from overseas investors for their third fund. Data from International Financial Services Centers Authority that governs GIFT City shows that close to 255 alternative investment funds (AIF) are registered in GIFT City. To be sure these are not unique entries, as each AIF can have multiple funds registered. This growing interest has come at a time when more founders are moving to San Francisco, the ground zero for AI, to be closer to customers and tap into talents and technology development early. They are followed by investors, who are investing more in the India-US corridor. For many of them, GIFT City presents a suitable alternative to overseas offshore regions such as Mauritius. GIFT city structure There were three reasons why most AIF funds were set up in offshore regions. The Alternate Investment Funds (AIFs) are governed by the Securities and Exchanges Board of India (SEBI), which places a cap on foreign Bhagwan, managing partner, Inventus Technology Partners, said that for SEBI governed funds, investments are made by default in Indian Rupee and extensive paperwork is involved to convert this to the other currencies - including an approval by the SEBI and subsequently working with the authorized dealers (bankers).GIFT was aimed at addressing these challenges. A report from Grant Thornton details that unlike the SEBI-governed funds, there are no limits on investing overseas, and companies can also avail tax exemption under GIFT City Goyal, partner, Stellaris Venture Partners, which has a GIFT city entity, said that they offer a friendly and easy administrative regime to set up foreign currency told ET that limited partners are also getting comfortable setting up in GIFT city as well. Moving to GIFT Ashish Fafadia, partner, Blume Ventures, said that they have been successful in convincing their LPs to start evaluating and setting up in GIFT city. 'We have taken a view that if you are going to compare tax stability it is definitely no worse than Mauritius. We believe that this is only going to get better and it would be more prudent to set up here than outside (India), though this may take time,' Fafadia said that they are seeing an increase in interest from investors who are exploring GIFT as an option, particularly those who want to invest in the companies in the US or other regions. 'GIFT City structure makes it easier to invest in say USD or GBP, unlike the longer process involved in the SEBI-governed Alternative Investment Funds (AIF)', she there are challenges to this. Challenges Bhagwan, who was cited earlier, said that while GIFT city aims to make the process simple, a lot more needs to be done to make the process easier. 'When we were helping a fund set up in GIFT City we faced challenges. LPs need to work with the banks to convert INR to USD, a process that took us nearly 3-6 months to finalize,' she investor, who explored GIFT City, said that unlike Mauritius where the tax implications are well-known, the region is new and there is not much clarity when it comes to tax implications. He also raised concerns around the mandate to set up an office to operate the Fafadia said, 'Reality is that, IFSC regulations are easier as well as better than naysayers projected it out to be and not as perfect as what regulators may want it to be. But the regulations are not meant to be a cake walk, more so for sunrise industries such as Alternatives (Investment Funds). What we have seen with the regulators in GIFT City is that there is willingness to turn things around at the policy level. It may not take 20 presentations and can be done in 3-4 rounds, which is as quick as it gets.' 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