Launch IBC or OEC – A Global Opportunity for Practicing Professionals

The IFSCA has been formed to regulate financial matters appropriately and expand different financial products, services, etc. from the Indian economy to the rest of the world. The first International Financial Services Centre (IFSC) was established at Gujarat, popularly known as Gujarat International Finance Tec (GIFT) City in 2019. After that, the authority incorporated different business activities under IFSC, like

• Banking Sector: Indian as well as foreign banks can set up an Indian Banking Unit (IBU) to deal with lending- borrowing currency, expand derivative markets, etc., under one and unique standard through which India will get a smooth global connect.
• Insurance Sector: In collaboration Indian and foreign insurance companies can set up an IFSC Insurance Unit (IIU) to do activities like inbound and outbound insurance & reinsurance activities.
• Capital Market and Asset Management: An Offshore unit may be set up by an investment adviser\'s company, different stock exchanges, brokers, trust service providers, etc. The main activity may be Trade Equity Indices, Currencies, Commodities, etc. on a single platform, Investment Advisory and Portfolio Management Services globally.
• Aircraft Leasing: India has reached a prestigious position in the domestic aviation market. In the near future, this industry could reach the highest position in the world. Hence, foreign aircraft companies can set up their business on the platform of IFSC.
• Ship Leasing: Due to the natural costal position of India, ship leasing companies can do their business under the global umbrella IFSC.
• Education Sector: For connecting foreign educational universities or foreign education institutions with GIFT- IFSC, the Authority has notified regulations, namely, IFSCA (Setting Up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022.

Educational Hub

\"An investment in knowledge pays the best interest.\" – Benjamin Franklin

After keeping in mind the noble quote by a great American polymath, it is clear that if investment is made in knowledge through expansion of the education sector, then a great amount of positive return will be awaiting worldwide. The IFSCA has established a global finance hub and also fixed many objectives, like training, skill development, and pooling talent from human resources. To fulfill these objectives, it is necessary to know the global standards, financial management structures, bookkeeping-accounting methodology, procedural parts of tax, including indirect taxes, world banking scenarios, modern technology, etc. The authority has already declared GIFT IFSC as an International Educational Centre.

The IFSCA has also notified the IFSCA (Setting Up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022 on 12.10.2022. The IFSCA always boosts up to open International Branch Campus (IBC) or Offshore Education Centre (OEC) in IFSC respectively.

Here, IBC can be opened by any foreign universities that have a global ranking and/or subject ranking within the top 500 as per the latest Quacquarelli Symonds (QS) World Universities ranking. The OEC can be opened by any reputed Foreign Educational Institution. Some criteria should be maintained to establish the IBC and OEC:

• The formation of IBC or OEC may stand alone, or any other form approved by the IFSCA.
• The university or institution can provide proof of funding to ensure to run the centre on a continuous basis. That means sustainable development will be ensured by foreign universities.
• The university or institution can apply as per a specific format and approval will be given by the Authority.
• To provide a degree, diploma, or certificate in any course or programme in Financial Management, FinTech, Science, Technology, Engineering, Mathematics, and related or allied disciplines.
• It is necessary to emphasize a research-oriented programme in the above-mentioned disciplines. The main focus of this research is to enhance inner thinking for the benefit of the world economy. Research is the only thing that can change the shape of the entire world. It is great news that IFSCA has approved Deakin University, Australia, to open IBC in two courses, namely, Master of Cybersecurity (Professional) and Master of Business Analytics. Several interactions were held with various foreign universities in the UK, the US, and Australia. They have expressed their interest in establishing the IBC or OEC.

Benefits of Investment by Foreign Universities or Institutions

As per Quacquarelli Symonds (QS) Global India Initiative –\'A focal point of many in international higher education, India is on a spectacular ascent\'.

The Indian economy is now at a booming stage. The Gross Domestic Product (GDP) rate of India was 8.4 % in the 3rd quarter of the Financial Year (FY) 2024, which is remarkable throughout the world GDP ranking. India reached at the 5th position in the world in the GDP ranking. The following benefits can be earned by foreign educational institutions in terms of profits as well as wealth by the opening IBC and OEC at GIFT-IFSC.

• To establish a friendly relationship with high growth Indian economies, as the GDP rate of India is 8.4%. In this way, a well-defined smooth market will be reached by foreign institutions.
• India holds the 1st position as per the countries in the world population (2024) statistics. So, a smoothly increasing number of young Indian students are awaiting. Hence, foreign institutes can get a good number of youths to do the course, as this will show a good profitable indicator. Indian human resources are very talented, and the foreign universities will get this innovative talent as one of the key stakeholders.
• The foreign universities or institutions will get an innovative ecosystem because India holds the 40th rank out of 132 economies in the Global Innovation Index 2023.
• The foreign universities or institutions will get a good number of professional faculty members from different professional bodies, like the Institute of Chartered Accountants of India (ICAI), the Institute of Cost Accountants of India (ICMAI), and the Institute of Company Secretaries of India (ICSI).
• Foreign universities or institutions can tie up as a partner with big Indian corporate financial houses. Hence, good corporate support will be ensured by the Indian corporate environment.
• Foreign universities or institutions can easily form IBC or OEC with the simplified liberalization policy in India. All types of facilities will be provided by the Authority.
• The IFSCA maintains a transparent process of registration for starting IBC-OEC. The foreign education institutions may get clear and good governance from the Authority.
• For the purpose of operating the IBC or OEC, the Authority mentioned a minimum deposit and a fees structure in terms of USD. So, with the minimum investment, a foreign university or institution can establish an IBC or OEC.

Benefits to Indian Intellectuals

Operating IBC or OEC by foreign universities or institutions, Indian pupils will get the following benefits:

• Opportunity to absorb world-class education and training programmes. With the help of these programmes, Indian talent will be converted into sharpened talent. Innovative ideas can be generated in the youth\'s mind. Hence, the Indian economy can find superior, qualitative, and knowledgeable human resources.
• The Authority also included in this policy to develop the executives via executive education in different disciplines.
• After the implementation of these IBC or OEC projects, low financial pupils can fulfill their dream to study in India with foreign institutions. The IFSCA acts as a bridge between foreign institutions and ordinary pupils. This bridge can fill the gap between dreams and reality.
• Financial professionals can get a broad opportunity to gather knowledge about global standards and systems, hence they can become accustomed to the world financial hub. They will get an innovative financial market where the range of financial products is huge in number.
• With this system, CA, CMA, CS, and lawyers can develop their practice worldwide. They can expand their practice in the field of financial management, taxation, governance, and law throughout the world. Ultimately, they can share their core knowledge as well as acquire valuable information globally.
• The members of these institutes are getting good employment opportunities from the IFSCA for the topmost posts.
• With the policy of IFSCA, a smooth global connection can enrich Indian intellectuals to do a wide range of research in the field of finance, tax, engineering, logistics, legal etc.
• The students shall get the same recognition of these certificates as it would be conducted by the parent entity (foreign university or institution) in their own jurisdiction. It implies that the certificates will carry the same value anywhere in the world.

Comprehensive Growth of India via IFSCA

Through Foreign Direct Investment (FDI), 100% investment is allowed in the Indian education sector via an automatic route. As per FDI statistics, it has been observed that FDI equity inflow from April 2000 to September 2024 in the education sector is Rs. 83,550 crore. From this data, it is necessary to enrich foreign universities or institutions to open IBC and OEC in India via IFSCA. This strategic policy will help the inclusive growth of the Indian economy. Some parameters of inclusive growth are discussed below:

• Employability: Employability in the education sector will be increased with this model and the standard of living of human beings will automatically upsurge. This growth enhances Indian GDP.
• Assured Quality Enhancement: Due to the IFSCA policy to open IBC and OEC, the Indian educational institutions will rethink their systems. Indirectly, this policy will improve the quality of existing Indian education.
• Single Umbrella: Through GIFT- IFSC, the government can accumulate all the study abroad consultants under a single platform. Then it will be easier to invite foreign institutions to GIFT IFSC for the opening of IBC or OEC.
• Impact on Foreign Exchange (Forex) Reserve: Due to IFSCA\'s innovative policy of global connect through the establishment of IBC or OEC, it should be a positive impact on foreign exchange reserves. Hence, the overall growth of the Indian economy will also be impressive.
• Generation of Small Business: Many small businesses, like canteen, cafeteria, binding house, photocopier showroom, telecommunications, internet cafe, designing house etc., can be developed surrounding of projected IBC or OEC. This will help to develop overall earning capabilities of small-scale entrepreneurs.
• Enhancement of Banking Sector: Due to the digital Indian economy, the banking sector has also expanded its business in relation to the IBC or OEC establishment. A good number of human resources will be connected with global connectivity initiatives. So, there is expected to be a huge volume of bank transactions related to this establishment. The share market of the banking sector could be restructured throughout the world.
• Earning Foreign Currency: Through the initiative taken by the government of India, it will be obvious that the flow of foreign currency should be an increasing trend. This implies that the growth of the Indian economy should be one step forward in the world GDP ranking.

Key Role and Opportunities of the Finance & Governance Professionals in India

The CAs, CMAs, CS, and lawyers are the vital legal pillars in India as finance and governance professionals. These professionals play a dynamic role in the appropriate execution of the IFSCA policy regarding the formation of IBC or OEC in GIFT IFSC. Now this article explains the key role of these cherished professionals:

• Strategic Budget Preparation: On the behalf of foreign investors, practicing professionals can prepare a progressive cum strategic budget after considering long term risk-return policy.
• Enhance ESG: The term Environmental, Social, and Governance (ESG) is a buzzword in all segments throughout the world. The professionals like CAs, CMAs, CS, and lawyers are the most proficient in maintaining ESG in IBC or OEC atmospheres.
• Innovative Financial tools: The professionals should develop different financial tools through which the investors can expand their educational venture in GIFT city easily.
• Bookkeeping, Accounting, and Auditing Services: The Indian practitioners have wide opportunities to meet global standards of bookkeeping, accounting, and auditing services and expand their practicing areas. They can develop flawless practice principles by incorporating different software like ERP, SAP, etc.
• International Tax Management: International tax is a vital functioning area of development of IBC or OEC. The expert tax professionals, like CAs, CMAs, can easily grasp the entire tax system.
• Contact Drafting: The framework of opening IBC or OEC, it is necessary to draft a suitable contract. Here, the specialized legal practitioners like CS, Lawyers play a pivotal role in formulating contract drafting in a highly professional manner.
• Sustainable Counselling Services: The Indian professionals are always ready to counsel and consult all types of stakeholders related to IBC and OEC for smooth business functions.
• Formulation of Different Compliances: The Indian professionals can formulate different compliances to be maintained by the foreign body for the operating and execution part of IBC or OEC in this \'Global Connect\' initiative.
• Inspection: In case of inspections by the Authority at any time, the inspection team may take the help of these professional experts.

Conclusion

With the high rising economic growth in India, various opportunities are waiting in the hands of foreign universities or institutions. The Indian education industry is in a booming stage at present. The Government of India has taken a strategic initiative through the IFSCA Act, 2019. After that, the IFSCA has notified the International Financial Services Centres Authority (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022. The major beneficiaries of this initiative are foreign universities, foreign institutions, Indian youth populations, hardcore financial professionals, the members of CA, CS, and ICMAI. This initiative also provides employment opportunities, motivates entrepreneurship, earning more and more foreign currencies, global liaison in terms of finance, skill, talent etc. If all the policies or activities of IFSCA work properly, then India will reach the highest position in all aspects throughout the world. The demand for Indian professionals will increase in numerous ways. In the immediate imminent, time will be a new challenge for every Indian professional due to greater opportunities throughout the world.