GIFT City is India’s emerging global financial hub, offering world-class infrastructure, tax incentives, and a unified regulatory framework to attract global capital, onshore offshore finance, and position India as a premier international finance centre.
Gujarat International Finance Tec-City(GIFT City) has evolved into India’s most ambitious financial urban center—a state-of-the-art “city within a city”, designed to shift offshore finance onshore and position India among the world’s premier financial hubs. Located between Ahmedabad and Gandhinagar, GIFT City merges global standards, a unified regulator, and powerful incentives to catalyze capital markets, banking, insurance, fintech, and alternative investments.
By combining internationally benchmarked regulations, state-of-the-art physical infrastructure, and significant tax incentives, GIFT City is actively seeking to recapture the estimated $50 billion India loses annually in business to established offshore centers like Singapore, Dubai, and Mauritius.
GIFT City blends a Domestic Tariff Area(DTA) for domestic business and a multi-service SEZ housing the International Financial Services Centre (IFSC) regulated by the International Financial Services Centers Authority (IFSCA). This singular regime, with offshore-like regulatory and tax treatment, enables international transactions, cross-border investments, and fintech experimentation directly from India.
GIFT City’s remarkable growth is evident in the number of companies choosing the IFSC as their base.
Between October 2020 and July 2025,GIFT IFSC grew from 82 to 409 operating companies, reflecting robust regulatory stability, infrastructure readiness, and industry demand.
GIFT City is witnessing exponential growth, establishing its credibility as a leading destination for global financial players:
· Number of Entities: As of early2025, the city is home to over 766 registered entities across key sectors including banking, capital markets, insurance, and fintech. This isa massive jump from just 82 entities in October 2020.
· Total Investments & Assets: The city has attracted substantial capital, with over $20 Billion in committed fund investment.
o Assets undermanagement (AUM) for the 30 IFSC Banking Units (IBUs) alone have exceeded $78 billion (approx. ₹6.8lakh crore).
o Total banking assets in GIFT City exceeded $42billion as of early 2025.
· Market Activity: The ecosystem is demonstrating deep liquidity, with cumulative banking transactions reaching USD 975 billion.
GIFT City’s allure for both Indian and international players is underscored by impressive capital flows and real estate momentum:
· Banking Asset Size: From USD28 billion in FY22 to USD 93 billion by July 2025, with expectations of surpassing USD 100 billion soon.
· Commercial Real Estate: Office and residential prices have jumped 30–35% in recent months, with over 25 operational buildings and 47 more in development.
· Transaction Volume: Cumulative banking transactions have crossed USD 1.3 trillion, reflecting deep and growing market engagement.
· Total Investments: Major sovereign funds, global asset managers, and Indian conglomerates together are funnelling multi-billion dollar investments into infrastructure, financial units, leasing companies, and tech parks.
Family offices—vehicles for managing the investments and legacy of ultra-rich Indian and global families—are rapidly gravitating to GIFT City for several reasons:
· Dedicated Regulatory Regime: The IFSCA allows structured Family Investment Funds (FIFs)with tax efficiency, robust privacy, and global investment flexibility.
· Seamless Global Diversification: Family offices use GIFT City as a base to access Indian and international markets cost-effectively and with regulatory certainty.
· Growing Ecosystem: Increasing awareness and recent reforms have led to a surge in setups, with family offices tapping GIFT not only for wealth preservation, but also for philanthropy, cross-currency investments, real estate holdings, and alternative assets.
· Ease of Management: Consolidated compliance, exemption from capital gains, and year-on-year policy support make GIFT IFSC attractive for succession and global family wealth management.
· High-Net-Worth Individuals (HNIs) and family offices are increasingly setting up operations at GIFT City, primarily via Family Investment Funds (FIFs), to leverage a highly attractive operational framework:
Comparative Edge:
GIFT City matches or surpasses rivals like Singapore, Dubai (DIFC), and Mauritius through low costs, tax clarity, and rare access to India’s growth.
Tax Innovation:
Full tax exemption for 10/15 years, no STT/CTT/stamp on IFSC trades, GST relief, and dedicated capital gains regime for IFSC entities.
Smart Infrastructure:
Reliability, utility tunnels, automated waste management, 24x7 power, metro connectivity, and walk-to-work design reinforce the ease of doing business.
GIFT City is targeting USD 500 billion in external commercial borrowings, trade finance, and wealth management opportunities as India’s ultra-rich assets are forecast to hit USD 3.5–3.8trillion by 2030. New product launches—in aircraft leasing, green finance, bullion trading, and global depository receipts—point to its ambition as a trillion-dollar global financial corridor for the 21st century.
The road ahead for GIFT City is focused on evolving from a growing financial center into a fully integrated global ecosystem. The growth trajectory is supported by strategic policy moves and ambitious infrastructure plans:
Conclusion
GIFT City is more than real estate: It is a regulatory, tax, and infrastructure transformation that empowers India’s leap into global finance, connects global capital flows to domestic opportunity, and provides an efficient, innovation-rich launchpad for family offices, investors, and financial institutions of all stripes.
GIFT City is positioned to be more than just a finance hub; it is India’s definitive gateway for global capital and a catalyst for its ambition to become a global financial powerhouse.
Written by:
Revanth Sudish
Arpit Nagda
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Disclaimer:
This information is for educational purposes only and should not be considered as an investment recommendation. We strongly suggest that you conduct your own research or consult with a qualified financial advisor before making any investment decisions.
