“Gujarat International Financial Tec-city (GIFT City) spans 886 acres, serving as a multi-service Special Economic Zone (SEZ) housing India’s premier International Financial Services Center (IFSC) alongside an exclusive Domestic Tariff Area (DTA). Positioned as a nexus of finance and technology, it caters to clientele beyond India’s borders.
Conceived in 2007, GIFT City aims to forge a world-class zone, boasting top-tier office and service facilities, alongside cutting-edge technological, economic, and commercial infrastructure. It offers unparalleled connectivity, infrastructure, and transport access.
Legally, the IFSC operates as a distinct jurisdiction offering financial services in foreign currency. Businesses within GIFT City benefit from a robust regulatory framework, a conducive business environment, tax exemptions, streamlined cross-border transactions, and seamless currency conversion facilities.
In 2019, the establishment of the IFSC Authority (IFSCA) ushered in a unified regulatory regime, overseeing the development and regulation of financial products, services, and institutions within India’s IFSC.
GIFT City caters to diverse business sectors, primarily focusing on financial services and allied domains:
Banking: GIFT City’s IFSC hosts branches of Indian and foreign banks, facilitating offshore banking activities such as foreign currency accounts, deposits, lending, investments, and inter-bank transactions.
Capital Market: Offering a spectrum of capital market solutions, including access to equity, commodities, and currency derivatives markets, GIFT City accommodates various intermediaries like stock exchanges, clearing corporations, depositories, and investment firms.
Fund Management: GIFT City enables the launch of diverse fund schemes, including venture capital, restricted schemes, retail schemes, and special situation funds.
Insurance: Indian and foreign insurers can establish offices in GIFT City, offering direct insurance for offshore and Indian business, as well as reinsurance services.
Financial Companies: GIFT City permits finance companies to engage in core activities like lending, investments, derivatives trading, and non-core activities such as merchant banking and investment advisory services.
In addition to financial services, GIFT City hosts allied services like Global In-House centers, aircraft leasing, bullion exchange, foreign universities, and ship leasing.
Startups in the FinTech sector can benefit from dedicated FinTech sandboxes, providing a regulatory environment for innovation and experimentation.
To incentivize businesses, GIFT City offers significant tax benefits, including direct tax exemptions and indirect tax waivers, making it an attractive destination for startups and established firms alike.
In conclusion, GIFT City’s vision to emerge as a global financial and technology hub presents vast opportunities for startups. Its business-friendly ecosystem, innovative policies, and tax incentives position it as a strategic gateway for businesses seeking international exposure. As GIFT City continues to grow, it holds the potential to redefine India’s financial landscape and propel its journey towards global financial prominence.”
