The Rise of GIFT City as a Global Financial Hub
The International Financial Services Center (IFSC) concept is designed to strengthen India’s economic foundation by attracting global capital, financial services, and investment. GIFT City IFSC Hub One of the most promising embodiments of this vision is Gujarat International Finance Tec-City, widely known as GIFT City.
Strategically located near Ahmedabad on the banks of the Sabarmati River, GIFT City is quickly emerging as a world-class financial hub. With strong government backing, tax incentives, and state-of-the-art infrastructure, it’s becoming the go-to destination for Indian businesses seeking to relocate or repatriate their overseas operations.
Why GIFT City Is Gaining Momentum
The Indian government has positioned GIFT City as a “gateway for global capital and financial services for the Indian economy.” The city offers compelling advantages:
10-year tax holiday for companies
No capital gains tax for investments in GIFT-based units
No taxes on foreign fund transfers
World-class infrastructure and IT connectivity
Ease of doing business under a streamlined regulatory regime
These features make GIFT City a competitive alternative to established financial hubs like Singapore, Dubai, and Hong Kong.
Indian Asset Managers Lead the Shift
Recent trends show a clear momentum: 8 out of 10 Indian asset managers have either relocated or established branches in GIFT City.
One of the frontrunners is Mirae Asset Investment Managers. The company has shifted a $200 million Hong Kong-based fund to GIFT City and plans to move a second fund as well. CEO Swarup Mohanty cited the stable regulatory environment and proximity to Indian markets as key drivers.
Mirae Asset currently manages ₹1.46 trillion ($17.58 billion) in India and aims to oversee up to $435 million from its GIFT City base shortly.
Other key players include:
Kotak Mahindra Bank: Cited the cost-effectiveness of operating in GIFT City compared to Mauritius and Singapore.
DSP Mutual Fund: Plans to move $400–$500 million in assets from Mauritius by March.
Aditya Birla Sun Life AMC: The sixth-largest asset manager in India, shifting operations from Dubai and Singapore. CEO A. Balasubramanian also announced an ESG-focused fund in the works.
According to the International Financial Services Centre Authority (IFSCA), over the past three years, more than 80 fund managers have launched operations in GIFT City, with total commitments of $30 billion and investments exceeding $2.93 billion.
Strategic and Economic Impacts
GIFT City is set to revolutionize India’s global financial footprint. By consolidating financial operations domestically, India is not only bringing back capital but also creating jobs, reducing operational costs, and aligning with international financial practices.
That said, challenges remain. Improving international connectivity, aligning with global standards, and cutting red tape are still on the radar. However, the Indian government is actively addressing these issues to ensure sustained growth.
Conclusion: The Future Is Bright for GIFT City
With a powerful combination of regulatory support, tax benefits, and modern infrastructure, GIFT City is fast becoming the financial heart of India. As Indian asset managers and global investors continue to shift operations here, the city is poised to compete with—and perhaps even surpass—other global financial centers.
Now is the best time to invest in GIFT City real estate. Whether you’re an investor, a business owner, or a fund manager, the opportunities here are unparalleled.
👉 Looking to invest in GIFT City?
Contact Rumi Global Properties today to explore the most promising commercial and residential properties in India’s most dynamic international financial hub.
Leave a Reply