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General Studies (Paper 1) from JKPSC JKAS 2023 Prelims
Subject: General Studies (Paper 1) Economy Jammu & Kashmir Public Service Commission Last updated May 9, 2026
JKPSC Prelims 2023 General Studies (Paper 1)

Consider the following statements regarding GIFT City:

1. GIFT City is India's first International Financial Services Centre (IFSC) under Special Economic Zone Act, 2005.
2. This provides world-class financial services only to non-residents, to the extent permissible under the current regulations, in a currency other than the domestic currency of the location where the IFSC is located.
3. GIFT is planned as a greenfield business district, to be located between Gandhinagar and Ahmedabad, to cater to financial services and IT firms looking to set up India operations.

The correct answer/s is/are:

Answer & Explanation

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Correct Answer: Option C — 1 and 3 only
Analysis of the Statements
1. India's first IFSC under SEZ Act, 2005 (Correct)
GIFT City (Gujarat International Finance Tec-City) was established as a Multi-Services Special Economic Zone (SEZ). Under Section 18 of the SEZ Act, 2005, the Central Government is empowered to approve the setting up of an IFSC. GIFT City is indeed India's first operational IFSC.

2. Services only to non-residents (Incorrect)
This is a common "extremist word" trap (the word "only"). While the primary goal of an IFSC is to cater to global customers and bring offshore financial transactions back to Indian shores, it is not exclusive to non-residents.

Residents can also access services at GIFT City under the Liberalised Remittance Scheme (LRS) (e.g., resident individuals can invest in foreign stocks/securities listed on GIFT exchanges up to USD 250,000 per year).

It provides services to both residents and non-residents, though the scope for residents is limited by RBI and FEMA regulations.

3. Greenfield business district between Gandhinagar and Ahmedabad (Correct)
GIFT City is a greenfield project (built from scratch on undeveloped land). It is strategically located on the banks of the Sabarmati River, connecting the political capital (Gandhinagar) and the commercial capital (Ahmedabad) of Gujarat. It specifically targets the Financial Services and IT/ITeS sectors.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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JKPSC JKAS 2023 Prelims

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Exam JKPSC
Recruitment JKAS
Stage Prelims
Year 2023
Subject General Studies (Paper 1)
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