Blitz Bureau
NEW DELHI: Gujarat International Finance Tec-City (GIFT City, located in Gandhinagar, Gujarat, marks India’s bold step towards building a world-class financial and IT hub. Designed with vision and precision, it blends global standards with sustainable innovation.
As India’s first operational smart city, it represents the country’s ambition to build a global hub for financial and technological services. Backed by strong Government support, the GIFT City sands as a symbol of India’s growing role in international finance and investment.
Today, it accommodates global banks, insurers, asset managers, and fintech firms, making it a rising competitor to international hubs like Singapore and Dubai. The city features integrated development comprising a commercial business district, dedicated residential zones, robust social infrastructure, and a vibrant retail and entertainment hub.
Background, vision
The Government envisions GIFT City as a gateway for international capital and innovation. Its long-term mission is to position India as a leading global financial centre by 2047, with sustainability and fintech at its core. It was established as India’s first International Financial Services Centre (IFSC) under the SEZ Act, 2005.
The GIFT City was designated as a multi-services special economic zone (GIFT SEZ) and officially notified as the country’s International Financial Services Centre (IFSC). Its governance rests on the International Financial Services Centres Authority (IFSCA), backed by strong Government oversight and policy support.
GIFT City’s governance rests on the International Financial Services Centres Authority (IFSCA), backed by strong Government oversight and policy support
Its institutional framework is designed to attract global capital, foster innovation, and uphold international standards of transparency and sustainability. The IFSC unit is treated as a non-resident under the extant Foreign Exchange Management regulations.
Unified regulator
The International Financial Services Centres Authority (IFSCA) was established under the IFSCA Act, 2019, and has been operational since April 2020. It functions as a unified regulator for financial products, services, and institutions in GIFT IFSC. It consolidates powers earlier divided among RBI, SEBI, IRDAI, and PFRDA for IFSC operations and has a mandate to develop and regulate financial services, promote ease-of-doing business, and align GIFT City with global standards.
The India International Bullion Exchange (IIBX) was launched in July 2022 at GIFT IFSC, promoted by leading institutions such as NSE, INDIA INX, NSDL, CDSL, and MCX, and is regulated by IFSCA. It provides a gateway for bullion imports into India while offering a world-class ecosystem for trading, investment in bullion financial products, and vaulting facilities.
GIFT IFSC hosts banks, insurers, asset managers, fintech firms, and the India International Bullion Exchange (IIBX). Regular consultations between the Government, IFSCA, and industry stakeholders help resolve concerns and enable business growth.
Support services
A Global In-House Centre (GIC) in an IFSC is a dedicated entity set up by a financial services group to exclusively provide support services related to financial products, operating in foreign currency under a permitted legal structure. It can cater to financial service groups like banks, NBFCs, financial intermediaries, and investment banks, etc.
IFSCA (Global In-House Centres) Regulation, 2020 was notified by IFSCA to provide a framework for recognition and operation of GIC in GIFT IFSC. These regulations lay down the framework for the operations of Global Capability Centres (GCCs) in GIFT IFSC.