Gujarat International Finance Tec-City is emerging as India's gateway for global capital. We assess its progress, its potential, and the opportunities it creates for market participants.
GIFT City, India's first international financial centre, has crossed a significant milestone. As of mid-2026, over 400 international financial services units (IFSUs) operate from GIFT City, including global banks, private equity funds, fintech companies, and family offices. The cumulative FDI from GIFT City entities crossed $8 billion. These numbers confirm what the Indian government has long hoped for — GIFT City is becoming the financial gateway between India and the world.
The appeal of GIFT City is multifaceted. International banks and funds operating from GIFT City enjoy a 100% tax holiday on income derived from IFSU activities for the first five years, followed by a concessional 15% rate for the next five years. They also gain access to India's domestic markets through the International Financial Services Centre (IFSC) framework, which allows them to raise, hold, and deploy capital in foreign currency without the regulatory constraints that apply to domestic operations.
The SEZ advantage
The Special Economic Zone (SEZ) framework at GIFT City provides further advantages. Companies operating in the SEZ enjoy streamlined regulatory approvals, single-window clearance, and exemption from various state and central levies. The physical infrastructure — a 380-acre smart city with underground utilities, district cooling, and integrated security — is world-class. The combination of fiscal incentives, regulatory simplicity, and infrastructure quality makes GIFT City one of the most attractive financial centre propositions in Asia.
Chart.js visualization placeholder: GIFT City growth metrics (2020-2026). The chart shows IFSU count (from 50 to 400+), cumulative FDI ($0.5B to $8B), and employment (5,000 to 45,000). Comparison with other Asian IFCs: Singapore IFSC $500B AUM, Hong Kong $400B AUM, GIFT City IFSC $80B AUM (growing at 40% CAGR).
What's next
The government has ambitious plans for GIFT City. The target is 1,000 IFSUs by 2030 and $50 billion in cumulative FDI. Key focus areas include expanding the IFSC's product offerings — derivatives, commodities, and structured products — and integrating GIFT City with India's domestic financial markets. The recently launched Rupee Denominated Bonds listed on GIFT City's international exchange represent a significant step in this direction.
GIFT City is India's answer to Singapore and Hong Kong. It will not replace them — but it will create a compelling alternative for companies that need access to both Indian markets and global capital. The opportunity for investment bankers is enormous.
At IIG, we have been active in the GIFT City ecosystem since its inception. Our Singapore office works closely with our Ahmedabad and Mumbai teams to facilitate client introductions to the GIFT City ecosystem, and we have advised on several mandates involving GIFT City IFSUs as vehicles for cross-border capital flows.