Introduction to GIFT City
GIFT City, or Gujarat International Finance Tec-City, is India's first-of-its-kind project. Intended to be the nation's first functioning smart city and international financial services centre (IFSC). Despite being in India, GIFT City operates as an offshore financial jurisdiction with special tax regimes and provisions to make it stand at par with global financial centres like Dubai and Singapore.
In this blog, we will take a deeper look at GIFT City and its functions.
What is GIFT City?
GIFT (Gujarat International Finance Tec-City) is India's off-shore financial service centre. Despite being located in India, it is treated as an entity outside India for tax and financial purposes. It is modelled along the lines of international financial hubs like Singapore and Dubai and provides tax incentives and liberal business policies. A single unified regulator: International Financial Service Centre (IFSCA) regulates all the activities in GIFT City.
History & Vision of GIFT City
The founding vision of GIFT City goes back to 2007. Narendra Modi, the then Chief Minister of Gujarat, announced the ambitious plan of setting up an international financial centre along the banks of river Sabarmati in Gandhinagar. He was inspired by Singapore and wanted to build a financial hub along similar lines.
Initially, GIFT City was actually a joint venture between the Gujarat state government and IL&FS (Infrastructure Leasing and Financial Services Ltd.), a construction and financial services company. However, the latter ran into trouble in 2018. Fastrack to April 10 2015, GIFT City was inaugurated as India’s first International Financial Services Centre (IFSC), leading the country’s financial ambitions to the globe.
GIFT City Location and Infrastructure
Where is GIFT City Located?
GIFT City is strategically located between Ahmedabad and Gandhinagar in Gujarat. This city is an integrated development on 886 acres of land with a built-up area including office spaces, hotels, residential apartments, schools, hospitals, retail and various recreational activities.
GIFT City Master Plan and Expansion
As of March 2025, GIFT City is undergoing a significant expansion, with its master plan set to increase the city's area from the current 886 acres to over 3,300 acres. This expansion aims to enhance the city's social infrastructure, including the development of residential zones, educational institutions, healthcare facilities, and recreational areas, thereby creating a more lively environment for residents and professionals.
Innovative design strategies, such as utilising excavated earth from construction to create a 70-meter landmark, are being implemented to promote sustainability and reduce environmental impact.
GIFT City vs Dholera
While GIFT City is a fintech and financial hub, Dholera is planned to be an industrial smart city. GIFT City is centred around financial services with specialized advantages for banking, insurance, and capital markets. Dholera caters to the manufacturing and logistics industries.
To know more about this topic, check out our blog GIFT City Vs Dholera
GIFT City vs Mumbai
Mumbai is India's financial capital and has a mature financial ecosystem with traditional institutions like Bank of America, Enfusion, Axis Bank and Goldman Sachs. However, GIFT City has lower operational expenses due to affordable real estate and cost-effective labour. Features like the district cooling system (DCS) cut operational costs by 30-40% by reducing energy consumption. GIFT City, with the IFSCA framework, tax incentives and presence of other global financial institutions, makes it a competitive option for Mumbai.
To know more about this topic, check out our blog GIFT City Vs Mumbai
GIFT City vs Singapore
Singapore is a financial world leader with a well-established financial system. It hosts more than 155 international banks, such as JP Morgan, HSBC, Citibank, Standard Chartered, etc.GIFT City, on the other hand, is quickly gaining traction by offering tax incentives, supportive regulations, and direct connectivity to Indian markets. Its IFSC structure is designed specifically to attract foreign investments and international businesses.
To know more about this topic, check out our blog GIFT City Vs Singapore
GIFT City SEZ and GIFT City IFSC
What is GIFT City SEZ?
GIFT City functions as a Special Economic Zone (SEZ), which means that the economic laws for setting up companies here are more liberal. Some of the benefits are that there is no STT (Securities Transaction Tax) or CTT(Commodities Transaction Tax) for transactions made in Gift City exchanges. SEZ companies enjoy exemptions on direct and indirect taxes as well.
Also Read: Gift City SEZ
How does GIFT City IFSC operate
In 2020, the government decided to create a single unified regulator in the zone — it was called the International Financial Services Centres Authority (IFSCA). IFSCA combines the regulatory powers of RBI, IRDA, SEBI and PFRDA. This unified regulator is a single window clearance that ensures quicker decision-making and reduces compliance burdens.
You may also like to know more about the features of GIFT City IFSC
NSE in GIFT City – Global Trading & Investments
The National Stock Exchange (NSE) opened its international exchange, NSE IFSC Ltd., in GIFT City. It gives access to financial instruments like derivatives, commodities, and currency trades. Trading takes place in 2 sessions, 6:30 AM to 3:40 PM IST for session 1 & session 2 starts at 4:35 PM to 2:45 AM IST, i.e., 19 hours. These extended trading times match various time zones for easier cross-border financial activity. GIFT Nifty (tracking the NIFTY 50) and US Stocks are available for investment on the NSE.
Investment and Business Opportunities in GIFT City
Why Invest in GIFT City?
GIFT City provides a strategic gateway to India's fast-expanding financial industry. Investors enjoy:
Tax benefits: Tax exemption up to 100% till 2030. There are exemptions on Capital Gains Tax for certain transactions and Goods and Services Tax (GST) on services provided by companies in IFSC to offshore clients.
Regulatory facilitation: A single-window clearance system and rules in accordance with international financial standards.
Global access: Access to cross-border financial services free from constraints of foreign exchange regulations.
How to Invest in GIFT City IFSC?
- For Businesses setting up operations in GIFT City: GIFT City offers concessions (tax concessions and subsidised infrastructure) for firms to set up operations in GIFT City. Firms operating in industries such as banking, insurance, capital markets, fintech, and asset management can apply for licenses from the International Financial Services Centres Authority (IFSCA). They can set up operations on approval from IFSCA.
- For Investors looking to set up in GIFT City: Investors have the option to invest through structures like Special Purpose Vehicles (SPVs) or Alternative Investment Funds (AIFs) established within GIFT City. Additionally, Fixed Deposits (FDs) offered by banks operating in the IFSC provide attractive interest rates compared to international currencies.
Note: SPV (Special Vehicle Purposes) is a subsidiary of the main company to isolate financial risk.
GIFT City Funds and Banking System
The city has a vibrant financial environment with:
- Offshore banking: The banking units established in GIFT City provide off-shore financial services while not being a part of India. These banks facilitate cross-border transactions and trade and wealth management for corporations and high-net-worth individuals. International banks like Bank of America, HSBC and Mizuho Bank have their offices in GIFT City.
- Investment funds: Funds are pooled capital from multiple investors managed by professionals to invest in a diversified portfolio of assets beyond stocks and bonds. These funds are divided into three categories based on their investment in startups, hedge funds, and private equity.
- International currency transactions: GIFT City supports transactions in 15 international currencies. This reduces the foreign exchange risk that international investors face.
Also Read:
List Of Foreign Banks & Financial Institutions in GIFT City
Major global banks like HSBC, Standard Chartered, and JP Morgan have set up offshore branches.
Firms in GIFT City
Apart from banking institutions, technology firms, consultancy organizations, and fintech players utilize GIFT City's facilities. The fact that organizations like TCS, Bank of America, and World Trade Center are located there only strengthens the trust GIFT City is gaining as a financial hub.
GIFT City Membership
GIFT City Club is a business club in GIFT City where the residents and professionals can socialise. Individuals can apply for membership via the GIFT Club website with benefits including a 20% discount on food & beverages, banquet hall packages and so on. To find more details, refer to the blog on GIFT City Club Membership.
Tax and Regulatory Benefits in GIFT City
GIFT City tax advantages
GIFT City provides tax benefits for setting up operations in GIFT City till 2030. NRIs and foreign residents enjoy tax exemptions on certain GIFT City products like fixed deposits and category-3 AIFs. Apart from that, there are no capital gains tax or relief from commodity transaction taxes.
SEZ Policies & Business Incentives
The SEZ policies reduce compliance burden while giving them flexibility in operations. This makes GIFT City a suitable choice for businesses requiring cross-border expansion. International banks, investment banks, insurance companies, and funds have set up operations at GIFT. In addition to this, IT companies and corporations have set up operations in GIFT City.
Education and Career Opportunities in GIFT City
Career & Employment in GIFT City
GIFT City's growing financial industry is creating employment in fintech, banking, insurance, and asset management. Career prospects also extend to legal, compliance, and IT fields. As of November 2024, GIFT City in Gujarat employs over 20,000 individuals across various sectors. Career opportunities can be checked at the GIFT City careers page and careers page of the respective organisations.
To learn more about GIFT City's career and job opportunities, refer to this blog.
Best Universities in GIFT City
GIFT City is actively in talks with internationally accredited universities to create a highly skilled workforce for the finance world. Universities like Deakin University and the University of Wollongong have opened their international campus in GIFT City. IFSCA’s regulations give universities the freedom to draft their own curriculum. Exposure to multiple international firms gives them the advantage to shape the curriculum and equip students to meet industry standards.
Lifestyle and Amenities in GIFT City
Residential & Commercial Areas:
GIFT City provides contemporary residential flats and high-end office spaces for professionals and companies. Currently, most of the residential spaces are under construction. The smart infrastructure of the city provides energy efficiency, hassle-free connectivity, and a green living experience.
Recreation & Entertainment:
Locals and tourists alike can indulge in luxury hotels and GIFT City Club. Upscale dining restaurants, shopping malls, parks, gyms and cultural complexes are under construction and will enhance the charm of the city.
Liquor policy In Gift City:
Although Gujarat is a dry state, GIFT City has granted FL-3 license to distribute alcohol in areas where eligible tourists can procure and consume alcohol legally within governed environments, providing a controlled but hospitable experience.
As of March 2025, government recorded an impressive Rs.94 lakh revenue from this move, almost 24,000 litres of alcohol has been consumed in the GIFT City.
To learn more about the GIFT City liquor policy, check out our blog on GIFT City Liquor.
Common Questions & Public Perception
Is GIFT City a Success or Failure?
GIFT City was initially considered a failure for several reasons, including slow early development and connectivity issues. But with time, GIFT City has drawn in foreign banks, fintech firms, and international investors. Steady growth and increased operations are pointing towards a bright future with the expansion plans to accommodate the increasing demand.
Debunking Myths & Misconceptions
Fears of slow early development and low levels of awareness are being tackled gradually through marketing, legislation, and improved infrastructure to showcase the progress. GIFT City has undergone changes in all gone under all these years since its inauguration.
GIFT City Address and Contact Information
Location: Gujarat International Finance Tec-City (GIFT City) is located between Ahmedabad and Gandhinagar in Gujarat, India.
Official Address: GIFT City, Block 12, Road 1-D, Gandhinagar, Gujarat - 382355, India.
Contact: For inquiries, you can reach GIFT City through their official website at www.giftgujarat.in.
Phone: +91-79-61708300
Email: info@giftgujarat.in/ query@giftgujarat.in
Connectivity & Transportation
By air: The nearest airport is Sardar Vallabhbhai Patel International Airport (Ahmedabad), around 20 minutes away.
By road: Easily accessible via major highways with frequent buses, taxis, and ride-hailing services.
By rail: Ahmedabad Railway Station is the closest, connecting major Indian cities.
Conclusion
GIFT City offers world-class infrastructure, tax benefits, and a supportive regulatory environment, making it a prime destination for businesses and investors. With ongoing improvements, it continues to grow as a leading global financial hub.
