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Smart Finance, Smart Future: GIFT City

Posted On: 28 NOV 2025 11:50AM by PIB Delhi

Key Takeaways

  • 1034+ registered entities in GIFT IFSC.
  • The hub hosts 38 banks with an asset base of $100.14 billion.
  • It spans nearly 1000 acres, expanding to 3,300+ acres with SEZ and DTA zones.
  • Offers a 10-year income tax exemption within a 15-year block for IFSC units.

Introduction

GIFT City stands as India’s bold step towards building a world-class financial and IT hub. Designed with vision and precision, it blends global standards with sustainable innovation. Gujarat International Finance Tec-City (GIFT City) is India’s first International Financial Services Centre (IFSC), located in Gandhinagar, Gujarat. As India’s first operational smart city, it represents the country’s ambition to build a global hub for financial and technological services. Backed by strong government support, GIFT City is designed to blend world-class infrastructure with sustainable urban development. It stands as a symbol of India’s growing role in international finance and investment. Today, it accommodates global banks, insurers, asset managers,

and fintech firms, making it a rising competitor to international hubs like Singapore and Dubai. The city features integrated development comprising a commercial business district, dedicated residential zones, robust social infrastructure, and a vibrant retail and entertainment hub.

Background and Vision

GIFT City was born out of a vision to create India’s first global financial hub. It reflects the country’s ambition to match world-class standards in finance and infrastructure. The government envisions GIFT City as a gateway for international capital and innovation. Its long-term mission is to position India as a leading global financial centre by 2047, with sustainability and fintech at its core.

  • Established as India’s first International Financial Services Centre (IFSC) under the SEZ Act, 2005.
  • Located in Gandhinagar, Gujarat, spanning nearly 1000 acres and now being expanded to 3,300+ acres, the city is divided into two parts: the Domestic Tariff Area (DTA) and the Multi-service Special Economic Zone (GIFT SEZ).

 

GIFT City is purposefully built to support both onshore and offshore financial operations, draw global investment, drive innovation, and generate high-quality jobs, contributing to India’s vision for Viksit Bharat 2047.

  • Onshore key financial services are currently conducted in offshore centres by both residents and non-residents.
  • Act as a premier gateway for channelling global capital towards India’s Viksit Bharat 2047 vision.
  • Create high-quality employment opportunities for India’s skilled workforce.
  • Drive regulatory innovation through a unified sandbox for fintech and financial product development.
  • Attract global institutional investors, including sovereign wealth funds, pension funds, hedge funds, and private equity, via a transparent and efficient marketplace.

Governance and Institutional Framework

The Government of India has designated GIFT City as a Multi-Services Special Economic Zone (GIFT SEZ) and officially notified it as the country’s International Financial Services Centre (IFSC). Its governance rests on the International Financial Services Centres Authority (IFSCA), backed by strong government oversight and policy support. Its institutional framework is designed to attract global capital, foster innovation, and uphold international standards of transparency and sustainability. The IFSC unit is treated as a non-resident under the extant Foreign Exchange Management regulations.

International Financial Services Centres Authority (IFSCA): It was established under the IFSCA Act, 2019, and has been operational since April 2020. It functions as a unified regulator for financial products, services, and institutions in GIFT IFSC. It consolidates powers earlier divided among RBI, SEBI, IRDAI, and PFRDA for IFSC operations and has a mandate to develop and regulate financial services, promote ease of doing business, and align GIFT City with global standards.

India International Bullion Exchange (IIBX)

The India International Bullion Exchange (IIBX) was launched in July 2022 at GIFT IFSC, Gandhinagar, promoted by leading institutions such as NSE, INDIA INX, NSDL, CDSL, and MCX, and is regulated by IFSCA. It provides a gateway for bullion imports into India while offering a world-class ecosystem for trading, investment in bullion financial products, and vaulting facilities. The exchange ensures responsible and transparent bullion trade by adhering to OECD due diligence guidelines for supply chain integrity from conflict-affected and high-risk areas.

GIFT IFSC hosts banks, insurers, asset managers, fintech firms, and the India International Bullion Exchange (IIBX). Regular consultations between the government, IFSCA, and industry stakeholders help resolve concerns and enable business growth.

GCC Growth Ecosystem at GIFT City

  • Strategic Location & Connectivity: Between Gandhinagar and Ahmedabad, with airport, metro, rail, and port access.
  • World-Class Infrastructure: Smart city design, modern offices, scalable facilities, and innovation hub potential.
  • Policy & Regulation: Light-touch regulation, single-window clearance, plus CAPEX/OPEX incentives and duty exemptions.
  • Talent Ecosystem: Strong workforce, top universities, and IT-BPM hubs driving collaboration and employability.
  • Global Gateway: Fintech partnerships and proactive regulation position GIFT IFSC as a rising global financial hub.

Global In-House Centres (GIC): A Global In-House Centre (GIC) in an IFSC is a dedicated entity set up by a financial services group to exclusively provide support services related to financial products, operating in foreign currency under a permitted legal structure. It can cater to financial service groups like Banks, NBFCs, Financial intermediaries, Investment banks, etc. IFSCA (Global In-House Centres) Regulation, 2020 was notified by IFSCA to provide a framework for recognition and operation of GIC in GIFT IFSC. These regulations lay down the framework for the operations of Global Capability Centres (GCCs) in GIFT IFSC.

FINTECH in GIFT IFSC:

GIFT City is rapidly emerging as a global FinTech hub, backed by a dedicated regulatory framework and active participation from leading tech firms. With innovation centres, sandbox environments, and academic partnerships, it fosters cutting-edge research, incubation, and enterprise growth in financial technologies.

Ø Regulatory Framework for FinTechs: Introduced via circular dated April 27, 2022, to position GIFT IFSC as a globally competitive FinTech hub.

Ø Dual Entry Routes: Entities operate through Direct Authorization or within the FinTech Sandbox, fostering innovation and flexibility.

Ø Industry Participation: Leading firms like Wipro, Infosys, Cognizant, and Hexaware etc. have commenced operations, employing ~2,500 professionals.

Ø Registered Entities: As of September 2025, GIFT IFSC hosts 20 FinTech/TechFin entities and 8 sandbox participants.

International Fintech Innovation & Research Centre

A flagship initiative by the Government of Gujarat and the Asian Development Bank, this centre anchors global excellence in FinTech through training, incubation, acceleration, and research.

  • Academic & Industry Partners: IIT Gandhinagar, Ahmedabad University, UC San Diego, and Plug and Play.
  • Focus Areas: Talent development, startup support, and cross-border collaboration in financial technologies.

 

Setting Up of Business

 

Business Setup Eligibility in GIFT IFSC

  • Exclusively serves financial services groups, with entities required to operate from FATF-compliant jurisdictions.
  • Support must be directed toward delivering financial services linked to financial products.
  • Can be established as a Company, LLP, Branch, or other permissible entity structure.
  • Considered a non-resident under India’s exchange control regulations.

 

Business Highlights

GIFT City has rapidly evolved into a prominent international financial hub, attracting diverse businesses and gaining global recognition. Its growing ecosystem, strong institutional presence, and rising preference among corporates highlight its increasing importance in global finance.

  • Entity Growth – Over 1,034 registered entities spanning banking, capital markets, asset management, fintech, insurance, and leasing.
  • Global Ranking – Achieved 46th position in the Global Financial Centres Index (March 2025), its highest ever.
  • Emerging Hub – Ranked 5th among 15 emerging centres and topped the reputation index.
  • Loan Disbursement – Banks at GIFT City disbursed nearly USD 20 billion in dollar loans to Indian corporates, up from 16% share two years ago, surpassing traditional hubs like London and Singapore.

GIFT CITY: BUSINESS HIGHLIGHTS

      

       Finance and Treasury

 

  • Global/Regional Corporate Treasury Centres (GRCTCs): 4
  • Core Finance Companies: 18+

 

Capital Markets

 

  • International Stock Exchanges: 2
  • Monthly Average Turnover on IFSC Exchanges – $89.67 billion
  • Total Commitments Raised: $26.30 billion
  • Total Fund Management Entities (FMEs): 194
  • GIFT NIFTY monthly turnover: $102.35 billion (May, 2025)

 

        

          Banking

 

  • Total Banking Units: 38
  • Aggregate size of banking assets - $100.14 Billion
  • Cumulative Banking Transactions:

$142.98 Billion

 

                    

                   Insurance

 

  • Total Insurance + Intermediaries: 52
  • Insurance and reinsurance entities with gross premiums booked - $425 Million

 

  • Total Ancillary Service Providers: 88+
  • Total FinTech & TechFin Entities: 20
  • Number of Sandbox Entities: 8
  • Total Registered Aircraft Lessors: 37
  • Aviation Assets Leased: 303
  • Registered Ship Lessors: 34
  • Ships Leased: 28

 

Key Institutions: GIFT City has rapidly emerged as a preferred destination for leading global and domestic enterprises establishing their offices and Global Capability Centres (GCCs). Its strategic location, modern infrastructure, and progressive regulatory environment have attracted companies across sectors—from semiconductors and energy to finance and technology.

Leading companies in the GIFT-DTA Area

Major GCCs

  • Infineon Technologies from Germany has established semiconductor and systems operations with approximately 750 employees.
  • Technip Energies, a France-based energy transition firm, employs around 500 professionals.
  • TELUS, a Canadian technology solutions provider, has also set up operations with a similar workforce of 500.
  • Tata Electronics has launched chip design activities, reinforcing GIFT City’s role in India’s semiconductor ambitions.

Major Tech and CoE in GIFT City

  • Accenture: US-based IT and consulting firm with ~750 employees.
  • Capgemini: France-based tech services company planning expansion to ~1,000 employees.
  • IBM Consulting: Expanding its advisory services and software labs in GIFT City.
  • NASSCOM: Established a Centre of Excellence focused on deep tech innovation.

Banking
  • Global banks: Standard Chartered, HSBC, J.P. Morgan, Citi, Deutsche Bank, BNP Paribas, Barclays
  • Asian majors: Mizuho, MUFG, ANZ, QNB, DBS
  • Multilateral: New Development Bank

Alternative Investment Funds (AIF)
  • Sovereign and global: ADIA, Morgan Stanley
  • Growth and PE: Lightrock, Lighthouse Canton, Bering
  • Specialist/others: Onyx, Decimal Point

Fintech Companies
  • Large tech services: Wipro, Infosys, Cognizant
  • Fintech platforms: KFintech, Signzy
  • Specialized solutions: Intellect (Design for Digital), ISG

Ancillary services
  • Big Four and advisory: EY, PwC, KPMG, Nishith Desai Associates
  • Data and administration: SS&C, Orbis
  • Trustee and corporate services: Axis Trustee, Catalyst

Finance Companies
  • Trade and export finance: 360tf, India Exim Bank
  • Corporate and infrastructure: AM/NS India, REC, IREDA

Insurance Companies
  • Indian leaders: GIC Re, LIC, HDFC Life, ICICI Lombard
  • Global reinsurers: Berkley Re, Peak Re

 

Infrastructure Growth: Driving GIFT City’s Vision

GIFT City has emerged as a modern hub of infrastructure development, reflecting India’s vision for global financial and business growth. Designed as India’s first operational smart city, GIFT City integrates cutting-edge infrastructure with modern urban planning. Its holistic approach combines advanced utilities, social amenities, and seamless connectivity to create a sustainable, world-class business and living environment. GIFT City offers world-class ‘plug-and-play’ infrastructure, enabling businesses to start operations quickly without delays. Together, these offerings create a well-planned environment that truly embodies the concept of a “walk-to-work” city.

 

High-End Civic Infrastructure
  • District Cooling System: A centralised cooling solution that eliminates the need for individual HVAC units, reducing energy consumption, maintenance costs, and carbon footprint. It significantly cuts carbon footprints through centralized production, using 30% less energy than traditional AC systems.
  • Automated Waste Collection System (AWCS): A pneumatic waste disposal network that ensures efficient collection, reduces transport-related emissions, and supports resource recovery.
  • Underground Utility Tunnel: A 17-km integrated tunnel housing power, water, sewage, and telecom lines, enabling uninterrupted service delivery and realising the vision of a “digging-free city”. A 1km long and 7m deep Samrudhi Sarovar is designed for 15 days of drinking water storage.
  • Zero-Discharge Water Management: Advanced water recycling systems ensure potable water availability from every tap and are available 24x7 while maintaining near-zero discharge through sewage reuse.
  • Reliable Power Infrastructure: Dual 66/33KV receiving stations with redundant sources and centralised backup systems guarantee an uninterrupted power supply for commercial and residential zones. This results in 99.999% power reliability, which means an outage of 5.3 minutes per annum.
  • Digital Connectivity Backbone: A robust optical fibre ring supported by multiple telecom operators ensures high-speed, secure digital infrastructure across the city.
  • Tier IV Data Infrastructure: GIFT City hosts a Tier IV‑certified Green Data Centre by STT Global, offering 99.999% uptime SLA, IGBC LEED Gold certification, advanced ISO/IEC 27001 compliance, and PCI DSS standards, ensuring an ultra-reliable and sustainable digital backbone for enterprises. GIFT City is connected globally through 15 leading telecom operators.

Transport Infrastructure
  • Urban Mobility: GIFT City ensures seamless external connectivity through integrated roads, MRTS, efficient transport systems, pedestrian pathways, and multilevel parking facilities.
  • Metro Integration: Seamless metro connectivity links GIFT City with Ahmedabad and Gandhinagar.
  • Proximity to Bullet Train: Just 15 minutes from the proposed high-speed rail terminal.
  • Airport Access: Only 20 minutes from Ahmedabad’s international and domestic airport.
  • National Highway Advantage: Strategically located along NH 48, part of the Delhi–Mumbai Industrial Corridor.
  • EV Bus Network: 12 electric buses connect GIFT City with Ahmedabad and Gandhinagar.
  • Railway Station Nearby: A major railway station is just 15 minutes away.
  • Domestic Air Connectivity: 1.5-hour flights link to key Indian cities, enhancing business mobility.
  • Smart City Infrastructure: GIFT City is India’s first operational smart city with green, tech-enabled transport systems.

Social Infrastructure
  • GIFT City is enhancing its urban experience with projects like a 21-acre Central Park, a riverfront development, and a Lilavati Hospital, aimed at boosting recreational, environmental, and healthcare amenities

GIFT City’s Command & Control Centre (C4) ensures secure, tech-enabled urban management through real-time utility monitoring and coordinated emergency response.

City Command and Control Centre (C4)
  1. Integrated Monitoring: Centralised platform overseeing utilities like power, cooling, water, waste, lighting, and GIS.
  2. Unified Operations: Acts as the city’s digital nervous system, streamlining governance and interdepartmental coordination.
  3. Single Window Interface: Enables efficient control and planning of all utility services from one dashboard.
  4. Real-Time Incident Management: Online tracking ensures swift response to service issues and disruptions. A network of 70,000+ input/output points enables real-time data collection, automated control, and citywide performance monitoring.
  5. 24/7 Utility Monitoring: SCADA-based systems guarantee an uninterrupted water and power supply.
  6. Scalable & Smart: Built to support future expansion across 70,000+ control points for seamless urban management.

 

 

Talent and Education Ecosystem:

GIFT City offers unmatched access to talent and academic excellence, drawing from premier institutions in its vicinity. It is also emerging as India’s gateway for global education in finance and technology, with top international universities establishing campuses within the city.

Supported by leading institutions such as IIM Ahmedabad, IIT Gandhinagar, and Gujarat Maritime University, etc., the state hosts a robust TechFin talent pool comprising over 86,000 software engineers, 71,000 finance professionals, and 21,000 management experts. Ahmedabad alone accounts for more than 1.7 million professionals and has recorded a 142% rise in AI-skilled talent over the past year.

Academic Infrastructure Service Providers (AISPs): To support international education in GIFT City IFSC, the IFSCA has issued a circular that introduces Academic Infrastructure Service Providers (AISP). These are authorized entities that offer campus infrastructure, research and development spaces, admissions support, staffing, marketing, and other approved services. This framework enables foreign universities to set up and operate smoothly within a relaxed regulatory environment. Global University Systems (UK), GEDU Education (UK), and Education Centre of Australia are among the existing AISPs operating in GIFT City.

India’s Gateway to Global Academia

Domestic Universities

GIFT City hosts a growing academic ecosystem that includes both Indian and international universities. Among the domestic institutions, the Indian Institute of Foreign Trade (IIFT) and Gujarat Biotechnology University offer specialized programs aligned with trade, commerce, and life sciences

Foreign Universities

On the international front, campuses of Deakin University and University of Wollongong from Australia are already operational, while Queen’s University Belfast and Coventry University from the UK are set to join, reinforcing GIFT City’s position as India’s gateway for global education in finance, technology, and innovation.

 

Business Advantage in GIFT CITY

GIFT City offers a future-ready environment for enterprises seeking speed, scale, and strategic positioning. With its integrated infrastructure, progressive regulatory framework, and access to skilled talent, it fosters a seamless ecosystem for innovation and global competitiveness. Businesses benefit from a supportive policy landscape and operational ease, making GIFT a preferred destination for high-value growth.

Over the last 5 years, the Government of India has provided several progressive policy measures for
development of GIFT City, such as: -

  • Notification of new age financial products and financial services under section 3(1) of the International Financial Services Centres Authority (IFSCA) Act, 2019, such as aircraft and ship leasing, global in-house centres, tax holiday on business income for 10 years out of a block period of 15 years to all IFSC Units provided under section 80-LA of the Income Tax Act, 1961 etc.
  • The Government has also delegated powers of Development Commissioner under the Special Economic Zones (SEZ) Act, 2005, to the International Financial Services Centres Authority (IFSCA).
  • Launch of a Single Window IT System (SWITS) for IFSC Units.

Global International Financial Services Centres (IFSCs) are known for creating supportive taxation environments, and GIFT City reflects this global best practice within India. By offering a wide range of tax incentives and exemptions, it establishes a progressive framework that encourages both individuals and organizations to thrive. These measures not only enhance competitiveness but also position GIFT City as a trusted destination for international and domestic financial operations.

     Fiscal and Non-Fiscal Support Measures

Direct Tax

  • Tax holidays available for 10 years within a 15-year period.
  • Reduced withholding tax on interest income.

Indirect Tax

  • GST is not applicable to transactions conducted within IFSC.
  • Custom Duty exemption on goods imported into the SEZ.

IT/ITeS Policy

  • Fiscal incentives covering both CAPEX and OPEX.
  • Incentives for employment generation.
  • Aatmanirbhar Gujarat Rojgar Sahay scheme.
  • Electricity duty concessions
  • Self-certification

Other Incentives

  • Exemptions under the Companies Act, 2013.
  • No Securities Transaction Tax (STT) or Commodity Transaction Tax (CTT)
  • Stamp Duty exemption
  • 100% reimbursement of employer’s provident fund contribution.

 

Single Window Governance Framework -

GIFT City operates under a streamlined single-window governance model led by the GIFT Urban Development Authority and the Notified Area Committee.

Conclusion:

GIFT City has rapidly evolved into India’s premier international financial and IT hub, blending global standards with smart infrastructure. Its strong regulatory framework under IFSCA ensures transparency and competitiveness. Progressive tax incentives and policy support make it a magnet for global capital. The city’s expansion and fintech focus highlight India’s readiness for future financial leadership. With sustainability and innovation at its core, GIFT City is poised to anchor India’s vision of Viksit Bharat 2047.

 

References:

Ministry of Finance:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2139983

https://sansad.in/getFile/loksabhaquestions/annex/185/AS356_DlI00X.pdf?source=pqals

Gujarat International Finance Tec-City Company Ltd.:

https://giftgujarat.in/business/ifsc?tab=setting-up-at-GIFT-city

https://giftgujarat.in/business/ifsc?tab=incentives

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