Gujarat International Finance Tec-City (GIFT City)

India’s on-shore international financial centre with unified regulation and global-level incentives.

Overview

GIFT City, located between Ahmedabad and Gandhinagar in Gujarat, is India’s flagship International Financial Services Centre (IFSC) with world-class infrastructure and a liberal regulatory environment. It aims to on-shore activities traditionally routed through offshore hubs like Singapore and Dubai by offering tax neutrality and a unified regulator.

The International Financial Services Centres Authority (IFSCA) acts as the single, unified regulator for IFSC entities, simplifying licensing and supervision across banking, insurance, capital markets, fund management, leasing, and fintech.

Objectives

  • Retain and on-shore global financial flows within India.
  • Provide a competitive ecosystem for banking, insurance, capital markets, and fund management.
  • Offer tax neutrality, regulatory clarity, and ease of doing international financial business.
  • Generate skilled employment and advance India’s role in global finance and fintech innovation.

Eligibility Criteria

Entities permitted

  • Banks (foreign and Indian), insurers & reinsurers
  • Capital market intermediaries (brokers, depositories, exchanges, clearing corps)
  • Fund managers and asset managers
  • Leasing companies (aircraft/ship) and fintech startups
  • Wealth management and private banking firms

Operating environment

  • Foreign-currency business in a liberalized IFSC regime
  • Unified single-window licensing and supervision by IFSCA
  • Smart-city infrastructure with walk-to-work design

Documents Required

Regulatory Engagement

  • Application to IFSCA for relevant license (banking, insurance, capital markets, funds, leasing, fintech)
  • Entity charter documents and ownership disclosures
  • Fit-and-proper, governance, risk, and compliance frameworks as per IFSCA norms

Business & Financials

  • Business plan with proposed products/services and target markets
  • Capital adequacy / net-worth evidence as applicable
  • Policies on AML/CFT, risk management, cybersecurity, and outsourcing

Incentives

  • 100% income-tax exemption for any 10 consecutive years out of 15 for eligible IFSC units
  • GST exemption on services received by IFSC units; no GST on transactions between two IFSC entities
  • Stamp duty relaxations on specified transactions; capital gains exemptions for non-residents on eligible IFSC-traded securities

Activities Covered

  • Banking units (foreign and Indian banks) offering foreign-currency products—ECBs, trade finance, derivatives
  • Capital markets via India INX & NSE IFSC covering equities, commodities, currencies, derivatives, DRs, and global securities
  • Insurance & reinsurance (including captives) and intermediaries
  • Fund management—AIFs, PE/VC, hedge and mutual funds under IFSCA Fund Management Regulations, 2022
  • Aircraft & ship leasing; bullion market; fintech & regulatory sandboxes

Benefits

  • Tax neutrality and globally competitive cost structure
  • Simplified compliance via a single regulator
  • Extended trading hours and deepening access to global investors
  • Smart infrastructure with seamless work-live connectivity

Roles

  • Unified Regulator: International Financial Services Centres Authority (IFSCA)
  • Ecosystem: Exchanges (India INX, NSE IFSC), banks, insurers, fund managers, leasing firms, fintechs

Guidelines

  • IFSC units transact largely in foreign currency and operate under IFSCA regulations.
  • Tax incentives are time-bound and subject to conditions under the Income-tax Act and Finance Acts.
  • Certain activities may have product-specific rulebooks (e.g., fund management, insurance, exchanges).

Statistics

Regulator: IFSCA (under IFSCA Act, 2019)

Trading Window: Up to ~22-hour trading in IFSC exchanges

Core Sectors: Banking, Insurance, Capital Markets, Funds, Leasing, Fintech

Frequently Asked Questions

IFSCA is the unified regulator for financial products, services, and institutions in the IFSC.

Eligible units can claim 100% income-tax exemption for any 10 consecutive years out of 15; specified GST and stamp duty relaxations also apply.