India 2023 - A Deep Dive into GIFT City – The Challenges and Opportunities Around Developing a New Financial Centre in India

In the dynamic landscape of global finance and business, certain locales emerge as pivotal hubs for international trade and investment. GIFT City, or Gujarat International Financial Tec-City, represents India’s strategic endeavor to establish such a hub. As an ambitious project, GIFT City is designed to be at the forefront of India’s rapidly expanding financial and tech sectors, equipped with a host of incentives and infrastructural benefits. This comprehensive overview will delve into the genesis, growth, and distinct attributes of GIFT City. It features insights from esteemed stakeholders, including the much-appreciated participation of Nishith Desai of Nishith Desai Associates, who has been an active participant in the GIFT City project since its inception, as well as the perspectives of seasoned market experts. Discover why GIFT City is poised to carve out a significant global niche and why it is gaining traction with businesses and investors as a premier destination for the region’s and possibly the world’s high-net-worth individuals.

Setting the Scene – An Introduction to GIFT City and its Appeal

India's first International Financial Services Center (IFSC),  the Gujarat International Financial Tec-City (GIFT City) was set up in 2015 near Gandhinagar, Gujarat's capital. In recent years, the GIFT City IFSC has presented more competitive benefits for offshore investors. New tax rules exempt entities in the IFSC from various taxes including GST, dividend distribution tax, and capital gains tax.