Latest news with #GIFT
Mint
7 days ago
- Business
- Mint
Centre's schemes to make micro and small businesses green find no takers: Less than 1% of funds disbursed
New Delhi: Central schemes to help Indian micro and small businesses turn green have found no takers, with less than 1% or only ₹7.23 crore of a ₹950 crore outlay disbursed so far. The MSME Green Investment and Financing for Transformation Scheme (MSME-GIFT) and MSME Scheme for Promotion and Investment in Circular Economy (MSME-SPICE) have barely seen any interest from micro, small and medium enterprises (MSMEs). Only 629 GIFT applications and four SPICE applications have been approved till June, data on the Union MSME ministry's performance smartboard showed. These schemes are only meant for micro and small businesses. While ₹6.87 crore has been dispensed under the GIFT scheme, SPICE has recorded an outgo of a paltry ₹36 lakh, with the two schemes slated to end in March 2026 and March 2027, respectively. An email query sent to the ministry of MSME remained unanswered till press time. Both schemes were launched in December 2023 as part of a World Bank-backed Raising and Accelerating MSME Performance (RAMP) project. Green investments and emission reduction hold the key to MSME exports that account for 45.73% of the country's exports, 30.1% of India's gross domestic product (GDP) and 35.4% of manufacturing—especially in the wake of developed economies imposing carbon taxes. Under the GIFT scheme, which has an outlay of ₹478 crore, micro and small enterprises can avail benefits in two ways—interest subvention and risk-sharing facilities. The interest subvention component, which has an allocation of ₹350 crore, provides affordable finance to micro and small enterprises for adopting green technologies by offering a 2% interest subvention per annum for a maximum of 5 years on term loans of up to ₹2 crore. Under this component, micro and small enterprises that have received approvals for loans for green investments can seek interest subvention. Till June this year, a little over ₹6.87 crore had been disbursed, according to the Green MSME portal. which provides information and data about the GIFT and SPICE schemes. Micro and small enterprises that have availed credit for green investments in renewable energy, energy efficiency, waste management, clean transportation, water management and circular economy practices can be part of the GIFT scheme. The second component—the risk-sharing facility with an allocation of ₹125 crore—provides partial credit guarantee coverage to lenders, reducing their risk exposure when extending credit facilities to micro and small enterprises for green projects. Till June, no risk-sharing facility application had been accepted, and no loan amount guaranteed under this component, the Green MSME portal showed. The SPICE scheme, which, with an outlay of ₹472.5 crore, allows micro and small enterprises to make green investments related to a circular economy, has also seen tepid interest from the industry. Only six applications have been filed, and four accepted, till June. Under the SPICE scheme, the government provides a capital subsidy for circular economy projects in brownfield projects. The capital subsidy is up to 25% of a project cost up to ₹50 lakh. If the project cost is more than ₹50 lakh, the capital subsidy is capped at ₹12.5 lakh. Circular economy projects eligible under the SPICE scheme include waste-recycling plants for plastics, rubber, electronic waste, municipal waste, compressed biogas, lithium-ion batteries, end-of-life vehicles and solar panels, among others. India's massive micro and small enterprise sector, made up of more than 65 million businesses, is a key driver of exports, but faces a critical hurdle in the form of carbon tax policies in developed economies, experts said. 'Indian micro and small businesses exporting to Europe will certainly bear the brunt of CBAM (Carbon Border Adjustment Mechanism). They will have to cut down emissions one way or another to be eligible for exports there," said Gurudas Nulkar, professor and director, Centre for Sustainable Development, Gokhale Institute of Politics and Economics. Under CBAM, a European regulation, shipments of steel, aluminium and some other products to the 27 nations of the European Union (EU) face a 'carbon tax' if the embedded carbon emission in these products is above what is allowed in EU. Nulkar said micro and small enterprises that supply to other businesses do not have enough resources to turn their operations green. These are commonly manufacturing sector businesses, which run on low working capital and wafer-thin margins, he said. On the other hand, micro and small enterprises that deal with consumers directly and are in the services sector may be pushed by investors to turn green. "Such consumer businesses do not want to remain MSEs but compete to be unicorns," said Nulkar, an expert of industrial sustainability and environmentalmanagement.
Economic Times
26-05-2025
- Business
- Economic Times
Looking to take your investments international? Why Gift city should be your chosen gateway
Tired of too many ads? Remove Ads Outbound investments Tired of too many ads? Remove Ads Popular in Wealth 1. FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks Inbound investments End note (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) The International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT) is treated as an international jurisdiction, even though its central business district is located within India's an example, Indian banks that have branches at GIFT report the deposits there as global (non-domestic) deposits. This is a gateway for investments to and from abroad, which can be used as per one's requirements. While international investments can also be accessed outside of GIFT—through avenues like the $2,50,000 annual Liberalised Remittance Scheme (LRS) or mutual funds—it's useful to be aware of all available options to make informed stocks are listed on the NSE IFSC at GIFT City, though currently this is limited to select US stocks. Indian exchanges like NSE and BSE operate at GIFT City, offering a curated list of leading global stocks. Due to currency conversion, stock prices in INR tend to be on the higher side. Investors cannot purchase these stocks directly; instead, they must invest through an IFSC receipt—an unsponsored depository receipt (UDR), which is a negotiable financial instrument. The UDR represents fractional ownership of the underlying US us consider an example. Say you have a positive view on the Apple stock and want to take exposure. We'll assume the stock costs $199, the unit being US dollar (USD). At a conversion rate of about Rs.84.5 to a USD, the price per share of Apple would be approximately Rs.16,800. Let's say the price of one UDR, with Apple as the underlying asset, at NSE IFSC is $7.95. Using the same conversion, it is approximately Rs.672. Hence, you are buying nearly 4% of one stock of Apple, with commensurate benefits in price appreciation and dividends. This is known as fractional ownership—without owning one full stock, you hold a fraction of it, with proportionate investments through GIFT City are part of the LRS, which has a ceiling of $2,50,000 per financial year. You go to your bank, get your money converted from INR to USD, and remit USD to your broker. There are currently seven brokers, all Indian entities, set up at GIFT City for this purpose and their names are listed on the NSE IX website. There is no compulsion for investments abroad through GIFT City, but the finance hub enables you and guides you for the time, the volume of overseas investments has been steadily rising. According to the RBI, the top categories for remittances are travel, education, maintenance of relatives, and gifts—followed by investments. From a $0.75 billion investment in equity/debt via LRS in 2021-22, the number steadily rose to $1.25 billion in 2022-23, and $1.5 billion in 2023-24. If an Indian investor already has funds abroad and that is routed through GIFT City, it is not counted as part of the LRS limit. In simple words, your LRS limits get freed up every year; hence, your past LRS investments fall within the LRS limit of that year. Every year you start on a fresh plate; a limit of $2,50, investments carry the additional benefit of INR depreciation over the investment horizon. For example, you invest in stocks/bonds/mutual funds abroad when the USD-INR exchange rate was 83. After a few years, at the time of withdrawal, it reaches 86. As you are converting from USD to INR at 86, this depreciation adds to the returns you earned from your investments flowing into India through GIFT City initially come in foreign currency, as the central business district is a foreign jurisdiction. For overseas investors, it is expected to be in USD (or other foreign currency), but it should be the same for Indian/NRI investors as well. Investments of funds into India is according to the financial product mandate as delineated by the product manufacturer. It could be investments into Indian equity or bonds or any asset class, as per the product specifications. The money is converted to INR and enters Indian jurisdiction. As long as funds remain invested in a bank at GIFT City in foreign currency, it is not a remittance to India, for that limited investments in India, there is the risk of currency depreciation over the investment horizon. As stated in the earlier example, if a foreign or NRI investor put in money when the exchange rate was 83, they got commensurate INR for investments. On redemption, at conversion rate of 86, they would get relatively lower quantum of USD.A point to be noted is that India-focused investment avenues cannot be availed by resident Indian investors, since investments into the country from an offshore jurisdiction by resident Indians will tantamount to roundtripping, which is not permitted by the investments abroad, if you have an appropriate wealth manager/investment adviser, you can take guidance on investment opportunities abroad. If your aim is to send money abroad for a goal that is a few years away, such as your child's education, the INR depreciation is an issue. You may send money earlier, in phases, to avoid the depreciation issue, to suitable investment products Author IS A CORPORATE TRAINER AND AUTHOR.
Time of India
26-05-2025
- Business
- Time of India
Looking to take your investments international? Why Gift city should be your chosen gateway
The International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT) is treated as an international jurisdiction, even though its central business district is located within India's borders. As an example, Indian banks that have branches at GIFT report the deposits there as global (non-domestic) deposits. This is a gateway for investments to and from abroad, which can be used as per one's requirements. While international investments can also be accessed outside of GIFT—through avenues like the $2,50,000 annual Liberalised Remittance Scheme (LRS) or mutual funds—it's useful to be aware of all available options to make informed decisions. Outbound investments Global stocks are listed on the NSE IFSC at GIFT City, though currently this is limited to select US stocks. Indian exchanges like NSE and BSE operate at GIFT City, offering a curated list of leading global stocks. Due to currency conversion, stock prices in INR tend to be on the higher side. Investors cannot purchase these stocks directly; instead, they must invest through an IFSC receipt—an unsponsored depository receipt (UDR), which is a negotiable financial instrument. The UDR represents fractional ownership of the underlying US stock. Let us consider an example. Say you have a positive view on the Apple stock and want to take exposure. We'll assume the stock costs $199, the unit being US dollar (USD). At a conversion rate of about Rs.84.5 to a USD, the price per share of Apple would be approximately Rs.16,800. Let's say the price of one UDR, with Apple as the underlying asset, at NSE IFSC is $7.95. Using the same conversion, it is approximately Rs.672. Hence, you are buying nearly 4% of one stock of Apple, with commensurate benefits in price appreciation and dividends. This is known as fractional ownership—without owning one full stock, you hold a fraction of it, with proportionate benefits. Outbound investments through GIFT City are part of the LRS, which has a ceiling of $2,50,000 per financial year. You go to your bank, get your money converted from INR to USD, and remit USD to your broker. There are currently seven brokers, all Indian entities, set up at GIFT City for this purpose and their names are listed on the NSE IX website. There is no compulsion for investments abroad through GIFT City, but the finance hub enables you and guides you for the purpose. Live Events Over time, the volume of overseas investments has been steadily rising. According to the RBI, the top categories for remittances are travel, education, maintenance of relatives, and gifts—followed by investments. From a $0.75 billion investment in equity/debt via LRS in 2021-22, the number steadily rose to $1.25 billion in 2022-23, and $1.5 billion in 2023-24. If an Indian investor already has funds abroad and that is routed through GIFT City, it is not counted as part of the LRS limit. In simple words, your LRS limits get freed up every year; hence, your past LRS investments fall within the LRS limit of that year. Every year you start on a fresh plate; a limit of $2,50,000. Outbound investments carry the additional benefit of INR depreciation over the investment horizon. For example, you invest in stocks/bonds/mutual funds abroad when the USD-INR exchange rate was 83. After a few years, at the time of withdrawal, it reaches 86. As you are converting from USD to INR at 86, this depreciation adds to the returns you earned from your investments abroad. Inbound investments Investments flowing into India through GIFT City initially come in foreign currency, as the central business district is a foreign jurisdiction. For overseas investors, it is expected to be in USD (or other foreign currency), but it should be the same for Indian/NRI investors as well. Investments of funds into India is according to the financial product mandate as delineated by the product manufacturer. It could be investments into Indian equity or bonds or any asset class, as per the product specifications. The money is converted to INR and enters Indian jurisdiction. As long as funds remain invested in a bank at GIFT City in foreign currency, it is not a remittance to India, for that limited period. For investments in India, there is the risk of currency depreciation over the investment horizon. As stated in the earlier example, if a foreign or NRI investor put in money when the exchange rate was 83, they got commensurate INR for investments. On redemption, at conversion rate of 86, they would get relatively lower quantum of USD. A point to be noted is that India-focused investment avenues cannot be availed by resident Indian investors, since investments into the country from an offshore jurisdiction by resident Indians will tantamount to roundtripping, which is not permitted by the RBI. End note For investments abroad, if you have an appropriate wealth manager/investment adviser, you can take guidance on investment opportunities abroad. If your aim is to send money abroad for a goal that is a few years away, such as your child's education, the INR depreciation is an issue. You may send money earlier, in phases, to avoid the depreciation issue, to suitable investment products abroad. The Author IS A CORPORATE TRAINER AND AUTHOR.
Borneo Post
16-05-2025
- Politics
- Borneo Post
32 Malaysian teachers to serve in UK under global immersion programme
Zahid (seated centre) speaks to reporters during the press conference. Flanking him are Fadhlina and Nanta. – Photo by Mohd Faisal Ahmad KUCHING (May 16): A total of 32 teachers from across the country will soon gain valuable experience serving at international schools in the United Kingdom under the Global Immersion For Future-Ready Teachers (GIFT) programme. In disclosing this, Education Minister Fadhlina Sidek said the teachers were recipients of the IKON Award, Innovative Teacher Award, Special Education Award, and Distinguished Teacher Award, which were awarded in conjunction with this year's national-level Teachers' Day celebration in Kuching. 'To honour and empower these educators so they can continue excelling and becoming exemplary figures in the profession, the Ministry of Education will sponsor their placement in the UK, where they will participate in upskilling programmes and engage in professional exchange with educators there. 'Congratulations to all 32 teachers who will be going on this fully sponsored journey,' she said during the 54th national-level Teachers' Day celebration at the Borneo Convention Centre Kuching (BCCK) here today. She also revealed that the ministry has allocated RM4 million to support the programme, which also covers short-term overseas training for selected teachers and officers in specialised fields. Deputy Prime Minister Datuk Patinggi Dr Ahmad Zahid Hamidi, who officiated at the event, proposed that the number of teachers sent abroad for global exposure be increased tenfold – from 32 to 320 – to better prepare Malaysian educators for the future of education. 'I think sending 32 teachers to the UK to broaden their mindset is a good starting point, and we welcome it if the number could be increased,' he told a press conference after the event. 'This is about motivation and recognition for our teachers. I will support the Ministry of Education's efforts to seek additional funding for this cause,' he added. Also present at the event were Works Minister Dato Sri Alexander Nanta Linggi; State Minister of Education, Innovation and Talent Development Datuk Seri Roland Sagah Wee Inn; State Minister for Women, Early Childhood and Community Wellbeing Development Dato Sri Fatimah Abdullah; Deputy Minister of Rural and Regional Development Datuk Rubiah Wang; and Education director-general Datuk Azman Adnan. Fadhlina Sidek gift Global Immersion For Future-Ready Teachers programme UK
Malay Mail
16-05-2025
- Politics
- Malay Mail
Teachers can now apply for transfers after two years with no extra conditions, says Fadhlina
KUCHING, May 16 — The Ministry of Education (MOE) is now allowing transfer applications from teachers who have served for at least two years. Education Minister Fadhlina Sidek said the applications can also be made without any additional conditions 'This decision was made after taking into account various views as well as the MADANI government's commitment to the well-being of teachers,' she said in her speech at the 54th National Teachers' Day celebration here today. Also present was Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Previously, teachers were not allowed to apply for transfers within the first three years of service. Fadhlina said the ministry has appointed 1,470 teacher assistants for 2025, with selected schools -based on set criteria, to receive two assistants each. 'MOE will also send selected teachers and officers for short-term overseas courses to gain knowledge and experience in specialised fields. This initiative involves an allocation of RM4 million,' she added. At the event, Fadhlina announced that 32 teachers will be sent to international schools in the United Kingdom at no cost under the Global Immersion For Future-Ready Teachers (GIFT) programme. In addition, she said teachers will be entitled to a 20 per cent discount on flight tickets through the MH GOM portal, with further details to be announced later. — Bernama
