For decades, a share of financial activities connected to India, including offshore rupee trading, foreign currency harrowing, and international insurance, were routed through Singapore, Dubai, and London. In simpler words, the Indian capital was generating business and tax revenue elsewhere. GIFT City (Gujarat International Finance Tec-City) was built specifically to reverse that.
Set up as India’s first operational smart city and a dedicated International Financial Services Centre (IFSE) in Gandhinagar, it replicates the regulatory and tax conditions of an offshore hub while remaining on Indian soil. For investors, GIFT City is a strategic gateway to both Indian and International markets, which also gives certain tax and regulatory advantages.
The financial incentives that GIFT city offers are unparalleled, including a 20-year 100 per cent tax holiday for eligible businesses, which was recently extended in the 2026 budget. Along with this, transaction taxes like STT (Securities Transaction Tax), CTT (Commodity Transaction Tax), and stamp duty are also eliminated. Beyond tax savings, GIFT City also provides significant currency flexibility by conducting transactions in major foreign currencies like USD, EUR, and GBP. This protects investors from rupee depreciation. This is further backed by a streamlined single window regulatory system under the IFSCA (International Financial Services Centres Authority) and the absolute freedom to repatriate capital and profits, making it a seamless and highly competitive alternative to traditional global financial hubs.
Investors can access a wide array of asset classes in GIFT City, all tailored to their residential status. These range from offshore Mutual Funds and AIFs to high-growth Grade-A real estate available through direct purchase or REITs. The ecosystem further enables seamless trading of global equities, derivatives, and bonds via the NSE IX and India INX (International Exchange). All of this while also providing NRIs with tax-free foreign currency deposits offering competitive interest rates. Additionally, Indian residents can leverage the Liberalised Remittance Scheme (LRS) to invest up to $250,000 (approx Rs 2.07-2.10 crore) annually in major global stocks like Apple or Tesla, all governed by the streamlined oversight of the IFSCA.
Ultimately, GIFT City represents a bold shift in India’s financial landscape.