CURRENT AFFAIRS – 04/11/2023

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CURRENT AFFAIRS – 04/11/2023

CURRENT AFFAIRS – 04/11/2023

Bletchley Park: Birthplace of Modern Computing

(General Studies- Paper III)

Source : The Indian Express

Bletchley Park, located approximately 80 kilometers north of London, is renowned as the birthplace of modern computing.

During World War II, it played a crucial role in cryptographic and intelligence advancements, significantly contributing to the Allied war effort.

Key Highlights

Relocation during World War II
- With the outbreak of World War II in 1939, Britain’s Government Code and Cypher School (GC&CS) was moved from London to Bletchley Park due to the constant threat of German bombings.
- Bletchley Park was chosen for its central location, rail connectivity, and position on Britain’s north-south telephone line, making it an ideal, safe location for GC&CS operations.
Dedicated Workforce
- Over the course of the war, more than 10,000 individuals worked at Bletchley Park, all focused on a singular objective: decrypting intercepted enemy messages to provide valuable intelligence for the war effort.
- Bletchley Park is most renowned for its successful efforts in breaking the seemingly ‘unbreakable’ Enigma code used by the Nazis.
- Enigma machines were complex cipher machines that encrypted radio messages with over 150 quintillion combinations, making manual decryption nearly impossible.
- Alan Turing’s invention, the Turing Bombe, replicated the Enigma machine’s actions and significantly expedited the code-breaking process.
- Hundreds of Turing Bombes, mainly operated by women, were used during the peak of the war, allowing analysts to decipher German messages in a timely manner, enabling the Allies to act on critical intelligence.
The Colossus Machine
- Bletchley Park was home to the Colossus machine, designed by Tommy Flowers and Max Newman, to aid in decrypting the Lorenz cipher used by the German High Command.
- The Colossus is considered by many as the world’s first programmable, electronic, digital computer, despite being programmed through switches and plugs rather than a stored program.
- Its remarkable speed and efficiency were noteworthy for its time.
Legacy of Bletchley Park
- Bletchley Park’s work was instrumental in Allied planning during the war, offering invaluable insights into enemy strategies.
- The contributions of Bletchley Park, particularly its code-breaking efforts, are believed to have shortened the war by approximately two years, according to historian FH Hinsley.
- Bletchley Park’s technological legacy, including principles developed by Alan Turing and colleagues, continues to influence modern computing and artificial intelligence.
The Role of Women
- Often overlooked, women played a critical role at Bletchley Park, where over 70% of the staff, numbering over 9,000 during peak activity, were female.
- Women operated machines like the Bombe and Colossus, working in challenging conditions.
- They formed the administrative backbone of the operation, enabling the smooth functioning of the Government Code and Cypher School (GC&CS).

Mumbai ranks 4th in global residential price rise

(General Studies- Paper III)

Source : The Indian Express

According to Knight Frank’s Prime Global Cities Index for the third quarter of 2023, Mumbai recorded the fourth-highest year-on-year growth in prime residential prices among global cities.

The city saw a substantial 6.5% increase in prime residential prices, propelling it up 18 places from its 22nd rank in September 2022.

Key Highlights

Delhi and Bengaluru’s Performance
- New Delhi and Bengaluru also saw upward movements in their index rankings.
- New Delhi moved from the 36th rank in the previous year to 10th place in September 2023, showing a growth of 4.1% year-on-year.
- Bengaluru’s ranking improved from 27th in 2022 to 17th in 2023, with a growth of 2.2%.
Global Prime Residential Price Trends
- The report notes that the average rise in annual prime residential prices across the 46 markets in the 12-month period ending in September 2023 was 2.1%.
- This growth rate represents the strongest recorded since Q3 2022, with 67% of cities experiencing growth on an annual basis.
Top Cities in the Index
- Manila claimed the top spot in the ranking, with an impressive 21.2% annual rise in prices, attributed to strong domestic and foreign investments.
- Dubai, which had held the top position for eight quarters, saw a decline in the September quarter, leading to a 15.9% annual growth.
- San Francisco was the weakest performing market, with a decline of 9.7% on a year-on-year basis.
Insights from Knight Frank India
- Shishir Baijal, Chairman and MD of Knight Frank India, explained that Mumbai’s strong position in the global ranking scale is due to a robust price trend in the upper end of the market and strong sales momentum.
- The desire of homebuyers to upgrade their lifestyles, coupled with stable economic prospects and improving market sentiments, is expected to sustain price growth in the short to medium term.
Overview of the Prime Global Cities Index
- The Prime Global Cities Index is a valuation-based index that tracks the movement of prime residential prices in 46 cities worldwide, measuring nominal prices in local currencies.
Outlook and Considerations
- Liam Bailey, Knight Frank’s Global Head of Research, noted that while the improvement in annual house price growth is positive for prime market homeowners, it indicates a world of lower asset price growth.
- Investors will need to work harder to identify opportunities for outperformance to achieve their target returns in this new environment.

About Knight Frank’s Prime Global Cities Index

Knight Frank’s Prime Global Cities Index is a valuation-based index that tracks the movement of prime residential property prices in various major cities worldwide.
It is a tool designed to provide insights into the performance and trends in the high-end or luxury real estate markets in key urban centres globally.

India will collaborate with Sri Lanka on debt treatment

(General Studies- Paper II)

Source : TH

India’s Finance Minister, Nirmala Sitharaman, has assured Sri Lankan President RanilWickremesinghe that India will continue collaborating with Sri Lanka on debt treatment.

Sri Lanka is grappling with a severe economic crisis, and it needs to engage its major creditors, including China, India, and Japan, to create an agreeable debt treatment plan.
The goal of such collaboration is to unlock the second tranche of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) to support Sri Lanka’s economic recovery.

Key Highlights

On October 19, Sri Lanka reached a staff-level agreement with the IMF on economic policies to conclude the first review of the EFF-supported program.
Access to $330 million from the IMF depends on reaching an agreement with official creditors, including India.
Promotion of Buddhist Ties and Grant Assistance:
- During her visit to Sri Lanka, Finance Minister Sitharaman engaged in activities to promote cultural and religious ties between the two countries.
- A revised Memorandum of Understanding was exchanged, outlining a $15 million grant assistance from India for the promotion of Buddhist ties between India and Sri Lanka.
- Out of this amount, $10 million will be allocated to support the solar electrification of religious places.
Naam 200
- ‘Naam 200’ event was also celebrated highlighting the arrival of Malaiyaha Tamils in Sri Lanka two centuries ago.
- Malaiyaha Tamils were brought to Sri Lanka by British planters to work in coffee and tea plantations, playing a significant role in the country’s history.
Indian Assistance India provided nearly $4 billion in assistance to Sri Lanka during its economic turmoil, which President Wickremesinghe attributed to the country’s stability at present.
- On the occasion, the foundation stone laying ceremony for a housing project in Sri Lanka’s hill country, backed by Indian grants was also jointly launched.
- The project, announced six years ago during PM Modi’s visit in 2017, is progressing well, with 3,700 out of 4,000 houses already handed over to beneficiaries.
Ongoing Economic Cooperation
- The 12th round of negotiations on the Economic and Technology Cooperation Agreement (ETCA) between Sri Lanka and India recently took place in Colombo.
- The ETCA aims to enhance economic ties and technology cooperation between Sri Lanka and India.

About International Monetary Fund’s (IMF) Extended Fund Facility (EFF)

The International Monetary Fund’s (IMF) Extended Fund Facility (EFF) is a financial assistance program designed to help countries facing prolonged balance of payments problems.
The EFF is one of the lending arrangements offered by the IMF and is typically sought by countries that are in need of medium-term financial support to address structural economic issues and restore macroeconomic stability.
The EFF aims to help countries achieve and maintain macroeconomic stability, which includes reducing fiscal deficits, managing inflation, stabilizing exchange rates, and strengthening the financial sector.
Key features:
- Medium-Term Financial Support:
  - The EFF provides financial assistance to member countries over a longer period compared to the IMF’s more traditional Stand-By Arrangements (SBA).
  - The extended duration allows for a more gradual adjustment process and reform implementation.
- Structural Reforms:
  - EFF programs are often characterized by a focus on addressing structural economic imbalances.
  - These reforms may involve changes in fiscal policy, monetary policy, exchange rate policies, and structural adjustments to promote sustainable economic growth.
- Policy Conditionality:
  - Like other IMF lending programs, EFF assistance is typically contingent on the recipient country’s commitment to implementing specific policy measures and reforms.
- Financial Terms:
  - The terms of the EFF, including interest rates and repayment schedules, are generally more favorable than those in international financial markets.
- Access to Resources:
  - The amount of financial assistance a country can receive through the EFF depends on its balance of payments needs and its capacity to repay the IMF.

Delhi air quality worsens to ‘severe plus’

(General Studies- Paper III)

Source : TH

On a recent Friday, the air quality in Delhi worsened significantly and reached the “severe plus” category.

This deterioration is the result of several contributing factors, including stubble burning in neighbouring states, local pollutants, and unfavourable weather conditions that hinder the dispersion of pollutants.

Key Highlights

Emergency Measures Initiated
- The severe plus category signals a critical level of air pollution, prompting the need for immediate action.
- In response to this situation, Lieutenant-Governor Vinai Kumar Saxena called for an emergency meeting to address the issue and instructed all government agencies to prioritize pollution mitigation, regardless of their usual mandates.
- In light of the severe air quality, Lieutenant-Governor Saxena issued a public advisory, urging residents to stay indoors as much as possible and avoid unnecessary travel.
- When travel is essential, he recommended using public transportation to reduce emissions.
Delhi’s authorities have reached out to neighbouring states, with a particular focus on Punjab, which was responsible for a significant number of stubble-burning incidents.
The Lieutenant-Governor appealed to these states to take measures to curtail stubble burning, which is a major contributor to the poor air quality in the region.
School Closures and Construction Ban
- As Delhi grappled with severe air pollution, authorities took various measures to address the issue.
- Primary schools were temporarily closed until the following Monday to protect children from the hazardous air quality.
- Additionally, a ban on non-essential construction and demolition activities was put in place.
- To reduce emissions, the Delhi government imposed a ban on BS-III petrol and BS-IV diesel light motor vehicles (LMVs), with a penalty of ₹20,000 for violations.
- This move aimed to curb the use of older, more polluting vehicles.
Anti-Pollution Measures
- To combat the pollution crisis, the Delhi government deployed anti-smog guns and initiated road-sprinkling operations to prevent dust from rising.
- An awareness campaign encouraged vehicle users to turn off their engines at traffic signals to reduce emissions.
Unfavourable Weather Conditions
- Meteorological officials explained that unfavourable weather conditions, including low wind speed, non-conducive wind direction, and a lack of rain, were likely to persist for two to three more days, exacerbating the pollution problem.
The city’s Air Quality Index (AQI) saw a significant increase, rising from 351 at 10 a.m. on Thursday to 471 at 9 a.m. on Friday, before falling slightly to 468 at 4 p.m.
Graded Response Action Plan (GRAP)
- The Central government’s Commission for Air Quality Management (CAQM) activated Grade III of the Graded Response Action Plan (GRAP) in response to the deteriorating air quality.
- However, the more stringent Grade IV measures had not been implemented yet, despite the AQI surpassing the 450 mark, which is the threshold for activation.

About Graded Response Action Plan (GRAP)

The Graded Response Action Plan (GRAP) is a comprehensive strategy and action plan developed to address air pollution and improve air quality in the National Capital Region (NCR) of India, particularly in and around Delhi.
GRAP was first introduced in 2017 and has been updated and implemented in subsequent years to tackle the severe air pollution problems that the region faces, particularly during the winter months.
GRAP categorizes actions and measures into four different stages, each corresponding to a specific range of the Air Quality Index (AQI).
The AQI is a numerical scale used to communicate the level of air pollution, and it takes into account various air pollutants like particulate matter (PM2.5 and PM10), nitrogen dioxide (NO2), sulfur dioxide (SO2), carbon monoxide (CO), and ozone (O3).
The four stages of GRAP are as follows:
- Stage I – Poor (AQI 201-300):
  - During Stage I, measures are relatively mild, aimed at addressing air quality when it is categorized as “poor.”
  - Some actions include increasing mechanized road sweeping, enforcing enhanced public awareness campaigns, and advising people with respiratory issues to take precautions.
- Stage II – Very Poor (AQI 301-400):
  - When air quality worsens and falls into the “very poor” category, more stringent measures are implemented.
  - These measures may include restricting the use of diesel generators, increasing bus and metro services, and intensifying enforcement of dust control measures at construction sites.
- Stage III – Severe (AQI 401-450):
  - When air quality reaches the “severe” category, even more strict actions are taken to mitigate pollution.
  - Measures include halting construction activities, increasing parking fees to reduce vehicular traffic, and implementing an odd-even scheme for private vehicles.
- Stage IV – Severe Plus (AQI above 450):
  - Stage IV is the most severe level, typically activated when the AQI surpasses 450 based on forecasts.
  - Actions under Stage IV can include shutting down schools, offices operating at reduced capacity (50%), banning the use of diesel generators, and implementing the odd-even scheme more rigorously.
  - These are stringent measures aimed at curbing emissions and reducing exposure to hazardous air.
- Implementation:
  - The Graded Response Action Plan (GRAP) has been implemented from 2021 onwards by the Commission for Air Quality Management (CAQM).
  - Prior to 2021, the implementation of GRAP measures was overseen by the Environment Pollution (Prevention & Control) Authority (EPCA), which was appointed by the Supreme Court.
  - In 2020, the EPCA was dissolved and replaced by the Commission for Air Quality Management (CAQM) to take on the responsibility of managing air quality in the region.
  - The CAQM relies on air quality and meteorological forecasts provided by the Indian Institute of Tropical Meteorology (IITM) and the India Meteorological Department (IMD) to make informed decisions regarding air quality management and GRAP implementation.

What can help improve Delhi’s air quality?

(General Studies- Paper III)

Source : The Indian Express

To improve Delhi’s air quality, a combination of meteorological factors is crucial, including wind speed, temperature, and the presence of rain.

The dispersion and accumulation of pollutants in the atmosphere are influenced by these factors.

Key Highlights

Wind: A Crucial Factor
- Wind speed is a critical factor in dispersing particulate matter, the primary pollutant in winter.
- An increase in wind speed can lead to a rapid improvement in air quality, as demonstrated on Friday in Delhi.
- An average wind speed of less than 10 km per hour is unfavorable for pollutant dispersion.
- Wind Speed Forecast
  - The Indian Meteorological Department (IMD) predicts wind speeds between 4 and 6 km per hour until Monday.
  - Some relief is expected afterward, with daytime wind speeds ranging between 10 and 12 km per hour.
- Temperature Inversion and Mixing Height
  - Temperature inversion occurs when cooler air near the ground is trapped beneath a layer of warmer air, leading to poor dispersion of pollutants.
  - A clear sky and lower temperatures at night contribute to temperature inversion.
  - Mixing height, the area available for pollutant dispersion, is determined by temperature inversion.
  - A higher mixing height is favourable for pollutants to disperse effectively.
  - Temperature Forecast
    - The temperature in Delhi is expected to range between 29 and 14 degrees Celsius over the next seven days.
    - The mixing height is predicted to be around 2,450 meters on Saturday, improving to 2,700 meters on Sunday, but dipping to 1,850 meters on Monday.
  - Role of Rain
    - Rainfall is essential for helping particulate matter and dust in the air settle, leading to an improvement in Air Quality Index (AQI).
    - October’s elevated pollution levels were partly due to dry weather, with only one rainy day, whereas previous years had more rainy days.

How air pollution impacts economic growth?

(General Studies- Paper III)

Source : The Indian Express

The prevailing belief that economic growth and air pollution levels have a trade-off relationship is challenged by recent research.

New findings suggest that air pollution has a significant adverse impact on GDP growth and per-capita income levels, affecting worker productivity, consumer spending, asset productivity, and healthcare expenses.

Key Highlights

Conventional Wisdom and Trade-off
- Traditional wisdom sees air pollution as an inevitable consequence of economic growth, reducing the sense of urgency for policy responses.
- A trade-off between GDP growth and emissions levels is commonly assumed.
Emerging Research Findings
- Recent research indicates that air pollution’s impact is contrary to conventional wisdom.
- Air pollution directly hampers GDP growth and per-capita income through several channels:
  - Reduced worker output: Polluted air affects the health and productivity of the workforce.
  - Lower consumer footfall: Poor air quality impacts consumption-led services, reducing consumer spending.
  - Hampered asset productivity: Air pollution affects the efficiency of machinery and equipment.
  - Increased health expenses: Pollution-related health issues lead to higher healthcare costs and welfare allocations, especially among the working-age population.
- Concerns for India
  - India faces particular concerns due to its economic hubs, such as Delhi NCR, experiencing recurring annual cycles of high pollution during winter.
  - Mumbai also grapples with pollution issues after the withdrawal of the southwest monsoon.
  - The Reserve Bank of India’s Department of Economic and Policy Research (DEPR) warns that India’s GDP faces a risk of up to 4.5% by 2030 due to climate change issues, including extreme heat and humidity.
  - The economic impact of recurrent annual cycles of air pollution in key manufacturing and service hubs significantly compounds the productivity drain.
- Quantifying Economic Impact
  - A June 2023 World Bank paper reveals macro-level effects of air pollution on India’s GDP based on micro-level impacts on health, productivity, and labor supply.
  - Data from approximately 550 districts in 25 states and Union Territories, contributing to 90% of India’s real GDP, demonstrate the aggregate-level effects of air pollution.
  - A 2021 study in The Lancet Planetary Health found variations in economic loss as a proportion of state GDP, ranging from 0.67% to 2.15% across Indian states.
  - States with lower per-capita GDP, such as Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh, and Chhattisgarh, experienced the most significant losses.
  - Approximately 50% of India’s GDP is generated from sectors exposed to heat, which includes outdoor work, according to RBI data.
  - In comparison, less than 25% of European GDP is generated by similar sectors, based on European Central Bank figures.
  - A first-of-its-kind report by Dalberg Advisors estimated that air pollution costs Indian businesses about $95 billion annually, equivalent to around 3% of India’s GDP.
  - The study highlights the economic impact of air pollution through various factors.
- Economic Impact Factors
  - Lower Labor Productivity: Air pollution reduces workforce efficiency.
  - Lower Consumer Footfall: Pollution affects consumption-led services and reduces consumer spending.
  - Lower Asset Productivity: Pollution hampers the efficiency of machinery and equipment.
  - Increased Health Expenses: Pollution-related health issues lead to higher healthcare costs.
  - Welfare Losses: Economic well-being is compromised.
  - Premature Mortality: Air pollution contributes to premature deaths.
- Methodology
  - The study utilized big data analytics, a primary survey, existing literature, and insights from academic experts, cross-sectoral business heads, and service providers to calculate the economic impact of air pollution.

Work starts on shaping first national security strategy

(General Studies- Paper III)

Source : The Indian Express

India is embarking on the creation of its first National Security Strategy after extensive discussions within the military and the strategic community.

The National Security Council Secretariat (NSCS) is leading the development process in consultation with various Central ministries and departments, with the intention of seeking Cabinet approval.

Key Highlights

The Significance of a National Security Strategy
- A National Security Strategy is a comprehensive document that outlines India’s national security objectives and the strategies to achieve them.
- It encompasses both traditional and non-traditional security challenges, such as financial and economic security, food and energy security, information warfare, vulnerabilities in critical information infrastructure, and supply chain and environmental concerns.
- It adopts a whole-of-government approach to address vulnerabilities and threats across various domains.
- The document will be made public once finalized and will be updated periodically to adapt to emerging situations and evolving threat assessments.
Involvement of Central Ministries and Stakeholders
- Over the past few months, several ministries have contributed inputs on a wide range of security challenges.
- Ministers from these ministries are actively participating in the process, reflecting the need for a coordinated approach to national security.
Inclusivity of Non-Traditional Threats and Vulnerabilities
- The national security strategy may incorporate input from non-governmental stakeholders, such as civil society organizations, academia, media, think tanks, and institutions.
- The aim is to address non-traditional threats and vulnerabilities effectively and holistically.
Addressing India’s Unique Challenges
- The comprehensive document will focus on India’s specific challenges and threats, formulating strategies for the immediate and near future.
- It may involve resource allocation and consider the existing internal and global security environment.
Importance of a National Security Strategy
- A National Security Strategy outlines security objectives and introduces accountability for the implementation of responsibilities.
- It provides a framework for addressing traditional and non-traditional threats and opportunities, ensuring efficient resource utilization and military readiness.
The military and the strategic community have consistently emphasized the need for a comprehensive national security strategy.

Direct listing on foreign exchanges: What does it mean for Indian companies?

(General Studies- Paper III)

Source : The Indian Express

The Indian government has enabled certain Indian companies to directly list on select foreign stock exchanges.

This move is aimed at facilitating access to global capital markets for Indian companies and boosting capital outflows.

Key Highlights

Ministry of Corporate Affairs Notification
- The Ministry of Corporate Affairs (MCA) issued a notification, confirming the implementation of this provision.
- The Companies (Amendment) Act, 2020, granted the central government the authority to allow specific classes of public companies to list certain classes of securities on foreign stock exchanges.
- Section 5 of the Companies (Amendment) Act, 2020, came into force on October 30, 2023.
- This section enables the government to exempt these listings from specific procedural requirements, such as prospectus, share capital, beneficial ownership, and dividend distribution requirements.
Access to International Financial Services Centre (IFSC), Ahmedabad
- In July, Finance Minister Nirmala Sitharaman announced that the government would enable both listed and unlisted domestic companies to directly list their equity shares on the International Financial Services Centre (IFSC) in Ahmedabad.
- GIFT IFSC in Ahmedabad is one of the prescribed foreign stock exchanges where these listings can occur.
Significance
- This development provides Indian companies with a more direct route to access global capital markets.
- It aims to promote capital outflows from India, allowing companies to tap into international investment opportunities.
Listing on Foreign Bourses – Current Process
- Indian companies currently list on foreign stock exchanges through depository receipts, such as American Depository Receipts (ADR) or Global Depository Receipts (GDR).
- To list overseas, these companies provide their shares to an Indian custodian, and depository receipts are issued to foreign investors.
- Between 2008 and 2018, 109 companies raised Rs 51,847.72 crore through ADRs/GDRs, but no Indian companies have listed overseas using this route since 2018.
Benefits of Direct Foreign Listing
- The new provision allows domestic companies to directly tap foreign markets to raise funds.
- It offers several benefits, including better valuation, exposure to trade in foreign currency (e.g., the dollar), and added global visibility.
- The start-up and unicorn community may benefit from this avenue to raise funds and increase their global profile.
- Direct foreign listings will also contribute to India’s foreign exchange reserves.
- It provides an additional channel for Indian companies to raise capital, and they no longer need to meet governance norms in specified jurisdictions since SEBI and Indian stock exchanges have stringent requirements.
Challenges in Direct Foreign Listing
- A key challenge relates to investor response, as it remains uncertain whether global investors will provide the same valuations as in India.
- Companies and boards will need to consider the commercial benefits of these listings.
- More details are required to clarify which classes of public companies can use this route, the types of securities that can be listed, the foreign jurisdictions and permitted stock exchanges for listing, and the exemptions offered for procedural compliances.
- It remains to be seen if the government will notify GIFT City as one of the permitted jurisdictions for direct foreign listings.

About the International Financial Services Centres Authority (IFSCA)

The International Financial Services Centres Authority (IFSCA) was established on April 27, 2020, under the International Financial Services Centres Authority Act, 2019.
It is headquartered at GIFT City, Gandhinagar, Gujarat.
IFSCA serves as a unified authority responsible for the development and regulation of financial products, financial services, and financial institutions in the International Financial Services Centre (IFSC) in India.
GIFT IFSC is India’s first international financial services center.
Prior to the establishment of IFSCA, domestic financial regulators like RBI, SEBI, PFRDA, and IRDAI regulated business activities in IFSC.
IFSCA acts as a unified regulator to promote ease of doing business in IFSC and provide a world-class regulatory environment.
The main objectives of IFSCA include fostering a strong global connect, addressing the needs of the Indian economy, and serving as an international financial platform for the entire region and the global economy.

What is GIFT City?

GIFT City, which stands for Gujarat International Finance Tec-City, is a planned business district and multi-service SEZ (Special Economic Zone) located in the Indian state of Gujarat.
It is situated between the cities of Gandhinagar and Ahmedabad. GIFT City is designed to serve as an international financial center and a hub for various financial and technological services.
Key features of GIFT City include:
- Financial Services:
  - GIFT City aims to provide a wide range of financial services, including banking, insurance, asset management, and capital markets.
  - It is expected to attract financial institutions, banks, and insurance companies.
- Technology and IT Services:
  - The city is equipped with state-of-the-art infrastructure and technology to support IT and IT-enabled services.
  - It is designed to promote innovation and digital transformation.
- Special Economic Zone (SEZ):
  - GIFT City operates as a multi-service SEZ, offering various incentives and tax benefits to businesses and investors.
- World-Class Infrastructure:
  - The city boasts modern infrastructure, including commercial and residential spaces, transportation facilities, and social amenities.
- International Connectivity:
  - GIFT City is well-connected globally, making it attractive for companies looking to access international markets.
- Regulatory Framework:
  - It operates with a flexible and business-friendly regulatory environment to encourage foreign and domestic investments.

How Depository receipts work?

Depository receipts are financial instruments that represent ownership in a foreign company’s shares.

There are two main types of depository receipts used by Indian companies:
- American Depository Receipts (ADRs):
  - These are issued in the United States and traded on American stock exchanges.
  - They represent shares of Indian companies and allow them to be listed and traded in the U.S. financial markets.
  - ADRs are denominated in U.S. dollars and provide an easy way for American investors to invest in foreign companies.
- Global Depository Receipts (GDRs):
  - These are issued outside the United States and can be traded on international stock exchanges.
  - GDRs are similar to ADRs but provide access to a broader international investor base.
- When Indian companies want to list their shares on foreign stock exchanges through depository receipts, they typically follow these steps:
  - They appoint a depository bank or financial institution, often located in the target foreign market, to facilitate the issuance and trading of depository receipts.
  - The Indian company deposits a certain number of its shares with the depository bank in India.
  - The depository bank issues depository receipts (ADRs or GDRs) to investors, which can represent one or multiple shares of the Indian company.
  - These depository receipts can then be freely traded on the foreign stock exchange, allowing investors in that foreign market to buy and sell them as if they were shares of the Indian company.