New Delhi, Feb 3 Infrastructure development plans are likely to stimulate further investments from the private sector to boost the transport and logistics sector, a report showed on Monday.
The Union Budget provides specific focus on the shipping industry and attracting investments in India by providing exemptions and relaxations to non-residents and IFSC units on certain income, said KPMG in India in its report.
The plans include an outlay of Rs 10,000 crore to fund infrastructure development through the public-private partnership (PPP) route.
Rs 1.5 lakh crore interest-free loan will be provided to states for meeting state-level infrastructure capital outlay, according to the Budget.
A second Asset monetisation plan has been announced to raise Rs 10 lakh crore with an aim to bring in greater participation from the private sector corporates and investor community
Maritime Development Fund will be set up to provide funding up to 49 per cent of the cost with the balance to be contributed by private sector or port trusts
Modified ‘Ude Desh ka Aam Nagrik’ (UDAN) scheme has been announced to enhance the connectivity outreach programme.
“Greenfield airport development in Bihar will likely enhance the connectivity of the state to the rest of the country and create employment opportunities, said the report.
The Budget has proposed setting up a Maritime Development Fund with a corpus of Rs 25,000 crore for the long-term financing of the maritime industry. This corpus will be for support and promoting competition in the maritime industry. The fund will have up to 49 per cent contribution by the government, and the balance will be mobilised from ports and the private sector.
The shipbuilding Financial Assistance Policy will also be revamped to address cost disadvantages, which will also include Credit Notes for shipbreaking in Indian yards to promote the circular economy. The government sees tremendous demand stemming from the needs of the Indian shipping market which should be adequately targeted by Indian shipyards.
--IANS
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SE launches Sensex Derivatives at GIFT City, opening doors for foreign traders
Mumbai, Feb 3 The Bombay Stock Exchange (BSE) on Monday introduced Sensex derivative contracts at the International Financial Services Centre (IFSC) in GIFT City, Gujarat which offers foreign investors to trade India’s benchmark equity index without currency conversion risks.
These contracts, which are denominated in US dollars, will be traded on the India International Exchange (India INX), BSE’s dedicated stock exchange for GIFT-IFSC.
The minimum investment for Sensex derivatives is set at $1, and the final settlement day for each contract will be the last Tuesday of the contract month.
The contracts will follow a three-month trading cycle, with settlements carried out in cash, in US dollars.
With a 22-hour trading window, these contracts allow international traders to engage with Indian markets across different time zones.
GIFT City offers several tax benefits, including exemptions from securities transaction tax (STT), capital gains tax, and stamp duty.
The launch of these derivatives aims to provide global investors with a tax-efficient way to participate in the Indian market.
During the launch event, BSE Managing Director and CEO Sundararaman Ramamurthy said that the competitive environment of GIFT City will be an advantage for global investors.
India INX, BSE’s international exchange, recorded an average daily turnover of $206 million in FY24-25.
Meanwhile, the National Stock Exchange (NSE) already offers Nifty-based derivative contracts at GIFT City through a partnership with the Singapore Exchange (SGX).
In July 2023, the SGX Nifty was migrated to NSE’s International Exchange (NSE IX) and was rebranded as GIFT Nifty.
The GIFT Nifty has seen rapid growth, with an average daily turnover reaching $95 billion in January.
Meanwhile, at the closing bell, the BSE Sensex had dropped 319.22 points, or 0.41 per cent, to settle at 77,186.74, while the Nifty was down 121.10 points, or 0.52 per cent, to close the trading session at 23,361.05.
The decline in the Indian share market is due to US President Donald Trump’s decision to impose a 25 per cent tariff on imports from Canada and Mexico, along with a 10 per cent duty on Chinese goods.
Trump argues that these measures are necessary to protect American borders and curb illicit activities.
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