Union Budget Unveils Strategic Tax Incentives to Fortify IFSC as Global Financial Hub

The Union Budget has introduced a significant fiscal overhaul for International Financial Services Centre (IFSC) units, positioning India as a competitive destination for global financial operations. The tax holiday for qualifying entities has been extended from 10 to 20 years, providing unprecedented long-term stability and predictability for investors. This extension is complemented by a post-holiday tax rate reduction to 15%, a substantial decrease from the current 25-35% corporate tax brackets. These measures are designed to attract and retain high-value financial services, including banking, insurance, and asset management, by aligning India's tax framework with international benchmarks. The enhanced incentives are expected to accelerate capital inflows, foster innovation in financial products, and strengthen the IFSC's role in cross-border transactions. This strategic fiscal policy underscores the government's commitment to developing a robust financial ecosystem capable of competing with established global centers like Singapore and Dubai.