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Written byAbhishek Chakravartiverification-badge
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Published 30th April 2026
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Reviewed byAlok Mishraverification-badge
Last Modified 30th April 2026
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GIFT City Full Form, Location & Background

GIFT city in Gujarat is committed to sustainability and revolutionising the global financial ecosystem. This Greenfield Smart City, with inclusivity and a nurturing environment as its foundational pillars, provides world-class infrastructure to financial experts.

Check out the basic features of GIFT city:

ParameterDetails
Full FormGujarat International Finance Tec-City
LocationGandhinagar, Gujarat, on the banks of the River Sabarmati near Ahmedabad
Area886 acres for Mixed-use Smart City Development
DeveloperGIFT City SEZ - Gujarat Urban Development Company (GUDC) and IL&FS Joint Venture
StatusFirst operational smart city and first International Financial Services Centre (IFSC) in India.
RegulatorThe International Financial Services Centres Authority (IFSCA) has been a unified regulator since 2020.
CurrencyAll IFSC transactions are settled in foreign currency only and not in Indian Rupees.
Global ComparisonModelled after the Financial Centre of Singapore, DIFC Dubai, and HKEX Hong Kong
Major Institutions InvolvedJP Morgan, Deutsche Bank, Standard Chartered, HSBC, Citibank, Barclays, Bank of America, NSE IFSC, India INX, and leading Indian life insurers

GIFT City in Gujarat was established with a vision to rebuild India's international financial network, reversing the trend of financial transactions routed to offshore financial hubs such as Singapore and Mauritius.

At present, GIFT City functions as a self-contained financial ecosystem, offering world-class infrastructure, plug-and-play office spaces, and a single-window regulatory framework under the IFSCA

What is an IFSC? Understanding GIFT City's Core Framework

An International Financial Services Centre (IFSC) is a jurisdiction within India designed to offer financial services to the NRIs and Indian residents in foreign currency.

Although the IFSC is physically located in India at GIFT City, it is treated as a separate, extra-territorial jurisdiction for regulatory and tax purposes. This provides the IFSC the character of a global financial centre on Indian soil.
Check out the key features of the IFSC at GIFT City:

  • All transactions within the IFSC are denominated in foreign currency, such as the US Dollar, Euro, GBP, etc. It means that transactions in Indian Rupees are not allowed within the IFSC.
  • IFSC is regulated by the International Financial Services Centres Authority (IFSCA), which absorbs the functions of multiple regulators, such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA) for IFSC-domiciled entities. It ensures that a single license covers multiple financial activities within the GIFT City.
  • Entities operating under the IFSC are treated as non-residents for Indian foreign exchange purposes, enabling smooth, seamless cross-border transactions.
  • The IFSC is subject to a special taxation and regulatory framework different from the rest of India, making it competitive with Dubai's DIFC or Singapore’s financial hub in terms of Ease of Doing Business (EoDB).

GIFT City General Trading — List of Permitted Financial Activities

General trading in GIFT City refers to a broad range of financial and business activities conducted within the IFSC. IFSCA regulates the following financial activities in the GIFT City:

Banking in GIFT City

Banking in GIFT City is regulated by the IFSCA (Banking) Regulations, 2020. Indian and Foreign banks can set up IFSC Banking Units (IBUs). These IBUs offer the following services:

  • Bank Accounts in Multiple Currencies: IBUs allow individuals to open bank accounts in multiple currencies, such as the US Dollar, the Euro, the British Pound Sterling, and other major currencies.
  • Cross-Border Lending and Trade Finance: Indian and global corporates can engage in cross-border lending and trade finance within GIFT City through IBUs.
  • Term Deposits in Foreign Currency: IBUs allow investment in term deposits in foreign currency, with interest income fully tax-free in India.
  • Inter-bank Activities: GIFT City operates as an international financial hub for inter-bank borrowing, lending, and treasury operations, similar to global financial centres like London and Singapore.
  • Investment Banking: This covers financial operations such as securities issuance, investment advisory services and issuance.
  • Remittance Services and Correspondence Banking: Enable individuals to transfer money and process cross-border transactions smoothly.


To facilitate these services, GIFT City includes several multinational banks, such as Deutsche Bank, Standard Chartered, HSBC, Citibank, Barclays, JPMorgan, and Bank of America, as well as major Indian banks.

Capital Markets and General Trading in GIFT City

GIFT City hosts two operational stock exchanges: India INX (India International Exchange) and NSE IFSC. Here are the trading activities offered under the capital market in GIFT City:

  • Equity Trading: Trading in Indian and global equities as well as other instruments such as American Depository Receipts (ADRs), and Global Depository Receipts (GDRs).
  • Derivatives: It involves trading in various types of equity, currency, and interest rate derivatives.
  • Debt Instruments: Capital market debt instruments involve bonds, commercial papers, government securities, and debentures.
  • Commodity Trading: Commodities trade at GIFT City is offered through the India International Bullion Exchange (IIBX).
  • GIFT Nifty (earlier GSX Nifty): The Nifty 50 futures contract traded on the NSE IFSC is the pre-market indicator for India's equity markets.
  • Other Securities: Various listed securities, such as Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs) and, Exchange Traded Funds (ETFs) are available in foreign currency.


The above types of trading activities are available to international investors, NRIs, HNIs and others who want to make tax efficient dollar denominated investments.

What is GIFT Nifty?

GIFT Nifty (earlier SGX Nifty) was relocated from the Singapore Exchange to the NSE IFSC in GIFT City in July 2023. It allows global investors to take positions in the Indian markets in USD and serve as a pre-market opening indicator of India’s domestic stock market performance.

Insurance Options in GIFT City — IFSC Insurance Offices (IIOs)

The IFSCA (Registration of Insurance Business) Regulations, 2021, regulate the conduct of insurance business in GIFT City. IIFC Insurance Offices (IIOs) are insurance entities that are licensed to operate within GIFT City. Check out their key features below:

  • IIOs can be established by the Indian insurance companies and foreign insurers with a home authority NOC.
  • The insurance policies issued in GIFT City are fully denominated in foreign currencies.
  • Various types of insurance plans are available in the GIFT City. Common options include term plans, Unit-Linked Insurance Plans (ULIPs), whole life plans, retirement solutions, and savings plans.
  • Non-Resident Indians are permitted to purchase life insurance in US dollars, and the maturity proceeds are received in foreign currency.
  • Major life insurance companies operating in GIFT City include HDFC Life, Tata AIA, and ICICI Prudential Life.

Fund Management Fintech & Other Permitted Activities

The IFSCA (Fund Management) Regulations govern the fund management entities in GIFT City. Here are the major characteristics of fund management, Fintech, and other permitted activities within GIFT City:

  • Fund Management: Key options include Alternative Investment Funds (AIFs), Portfolio Management Services (PMS), Venture Capital Funds, and Mutual Funds. There are however minimum and maximum limits in the case of such investments.
  • Fintech: Fintech services include a regulatory sandbox for innovation, lending, trading solutions, and payments.
  • Global or Regional Treasury Centres (GTCs/RTCs): They include corporate treasury operations, such as intra-group financing, commodities trading for group companies, and FX hedging.
  • Leasing: Involves aircraft leasing and ship leasing to repatriate India’s aviation leasing business from Ireland and Singapore.
  • Professional Services: It includes legal, consulting, accounting, and educational support services.
  • Reinsurance: Involves cross-border reinsurance and various insurance broking operations.

GIFT City SEZ vs GIFT City IFSC — Key Differences

GIFT City, as a Multi Services Special Economic Zone (GIFT SEZ) and Gift City IFSC serve different purposes within India’s financial ecosystem. The SEZ focuses on export-oriented businesses, while the IFSC is designed for global financial services and offers tax benefits and a regulatory framework.

Check out the major differences between the GIFT City SEZ and the GIFT City IFSC:

ParametersGIFT City IFSCGIFT City SEZ
Primary ActivityInvolves financial services, such as banking, insurance, capital markets, and fund management.Involves other activities, such as manufacturing, IT, trade, and export-oriented businesses.
RegulatorInternational Financial Services Centres Authority (IFSCA) is the unified regulator. Regulated by the development commissioner and sector regulator.
CurrencyOnly foreign currency is permitted. A mix of Indian Rupees and foreign currency is allowed.
GST StatusZero GST on financial services; allows full exemption. Zero GST on exports, but GST may apply domestically.
Jurisdiction StatusTreated as a separate, extra-territorial entity for regulation purposes. It is treated as a part of India. Specific duty and tax benefits apply.
Tax BenefitsEnjoy a 10-year income tax holiday along with exemptions on STT, CTT, and stamp duty, plus dividend and interest tax benefits.Profit-linked deductions under Section 10AA (now Section 11) (old tax regime) of the Income Tax Act are applicable.

Tax Benefits of GIFT City IFSC

GIFT City provides attractive tax benefits to ensure a global financial ecosystem. Here are the major tax benefits available under GIFT City IFSC to make it a competitive international financial hub:

Tax BenefitsGIFT City IFSCOutside GIFT City in India
Income Tax on Business ProfitsBusinesses in GIFT City IFSC can enjoy a 100% tax holiday for any 10 consecutive years out of the first 15 years, with this benefit currently available for units set up until 31st March 2030.Taxable as per the applicable slab rate or corporate tax rate.
Securities Transaction Tax (STT)Zero STT as it does not apply to the IFSC exchange transactions. 0.1% on delivery and 0.025% on intraday.
Commodity Transaction Tax (CTT)Zero commodity transaction tax (CTT) as it is not applicable within GIFT City.0.01% on non-agricultural commodity derivatives.
Stamp DutyZero stamp duty is levied on transactions in IFSC exchanges. Stamp duty applicable as per the state rate.
GST on Financial ServicesFull exemption for IFSC units with zero GST on financial services. 18% on most financial services.
GST on Life Insurance PremiumsZero taxation as the insurance premiums are exempt for individual life insurance policies issued by IIOs, effective from September 22, 2025.4.5% to 18%, depending on the policy type.
Dividend Income Received from IFSC10% tax at a concessional rate.20% for non-IFSC companies and an additional surcharge.
Interest on Foreign Currency DepositsTax-free in India.Taxable as per the applicable slab rates.
Capital GainsTax on capital gains is partially or fully exempt from the transfer of securities traded on IFSC exchanges. LTCG or STCG is applicable as per the standard rates.
Life Insurance Maturity ProceedsCompletely exempt under Section 10(10D) (now Section 11) (old tax regime). Budget 2025 removed the premium cap for IFSC insurance office policies.Taxable if the annual premium is more than ₹5 lakh after Budget 2023.

  • Define your goals

    • Define your financial goals clearly. This will enable you to decide which investment instruments to choose. Long-term financial goals like retirement planning needs long-term investment planning. On the other hand, short-term goals like saving for a vacation would require you to opt for a short-term investment plan.

  • Assess your risk appetite

    • Your financial goals, risk appetite and investment plans should be aligned. If you’re a risk averse investor, you should opt for secure investment options that offer guaranteed returns. For high risk-takers, market-linked investment tools that offer high returns are recommended.

  • Diversify your portfolio

    • Avoid investing in a single investment instrument. Spreading your investments across stocks, equities, mutual funds, etc. help you deal with market volatility.It protects against ypu against significant losses from a single security. Further, it lowers portfolio volatility, and helps in producing more stable and consistent long-term returns.

  • Be patient

    • Don’t be in a hurry to make withdrawals. You will benefit from the power of compounding if you stay invested for a longer time. This way, interest earned in previous cycles continue to earn more interest over time. This is how even relatively small investments can grow manifold over time.

  • Keep emergency funds

    • You should always have some financial backup in the form of an emergency fund. These funds should be maintained in a highly liquid form such as cash or a demand deposit. An emergency fund is designed to provide financial support during an emergency, so that you do not have to redeem long-term investments prematurely..

    Who Can Invest or Set Up Operations in GIFT City?

    GIFT City allows participation from global investors, financial institutions, fintech companies, NRIs, and multinational corporations. Entities can set up units in the GIFT City IFSC to access international financial markets and benefit from tax incentives.

    Check out the eligibility to invest in GIFT City before planning to set up a financial unit:

    InvestorsEligibility
    For NRIs and Foreign Investors
    • NRIs are eligible to invest in GIFT City funds, financial products, and securities directly in the foreign currency.
    • No Liberalised Remittance Scheme (LRS) is required for NRIs; they can freely invest using their Foreign Currency Non-Resident Account (FCNR), Non-Resident External (NRE), and foreign accounts.
    • NRIs can now fully own (100%) funds set up in GIFT IFSC, as allowed by SEBI’s June 2024 update, instead of the earlier 50% limit.
    • Foreign Portfolio Investors (FPIs) are allowed to invest in Indian securities via GIFT City exchanges.
    For Indian Residents
    • Indian residents are eligible to invest in GIFT City funds, financial products, and securities, subject to the LRS limit of USD 250,000 per individual per tax year.
    • Indian companies are allowed to open subsidiaries or branches, such as IFSC Banking Units, IIOs, and fund management entities, within GIFT City.
    • Indian and foreign insurance companies are permitted to establish IIOs with IFSCA approval.
    Basic Eligibility
    • Participants should comply with KYC requirements as per FEMA and IFSCA guidelines.
    • Entities establishing financial units within GIFT City must obtain an IFSCA license for a specific activity category.

    Life Insurance in GIFT City — The NRI Advantage (Budget 2025 Update)

    GIFT City offers NRIs a tax-efficient way to purchase life insurance in India. IFSC Insurance Offices (IIOs) within GIFT City provide life insurance policies in foreign currency denominations, offering life cover along with tax benefits to policyholders.

    How Is GIFT City Life Insurance Different from other Policies Purchased in India?

    GIFT City IIO policies feature some key advantages over regular policies purchased in India. These benefits include currency of purchase, policy tenure, currency of payout, etc. that makes them ideally suited to the needs of NRIs and foreign investors. Below is a comparison of these two types of life insurance policies:
    FeaturesGIFT City IIO PolicyRegular Indian Policy
    Policy CurrencyForeign CurrencyIndian Rupee (INR)
    Premium GSTZero GST, effective from September 22, 2025.4.5% to 18% based on the type of policy.
    Maturity Proceeds TaxCompletely exempt under Section 10(10D) of Income Tax Act, 1961 / Section 11 of Income Tax Act, 2025 without a premium cap.Taxable if the total annual premium is above ₹5 lakh after Budget 2023.
    Death Benefit TaxFully Tax-ExemptFully Tax-Exempt
    RepatriationAllows easy repatriation of proceeds in foreign currency.Subject to FEMA repatriation limits and regulations.
    Products AvailableTerm insurance, ULIPs, savings or endowment plans, whole-life plans, and retirement plans.Full range of products available in Indian Rupee (INR).

    Why NRIs Should Consider GIFT City Life Insurance?

    GIFT City offers various benefits to NRIs buying life insurance in India. Key benefits include no currency risk, simplified repatriation of proceeds, etc. This enables NRIs to secure life cover for their loved ones without major hassles.

    Check out the key benefits below:

    • No currency risk for NRIs, as life insurance premiums and policy proceeds are received in USD, eliminating exposure to INR depreciation.
    • Section 10(10D) of Income Tax Act, 1961 (now Section 11 of Income Tax Act, 2025) allows tax exemption on maturity proceeds. Moreover, Budget 2025 has removed the ₹5 lakh annual premium cap in the case of IIO policies. This allows NRIs to benefit from high-premium policies without significant increase in tax liabilities.
    • Zero GST applies to premiums, effective from September 22, 2025.
    • Easy repatriation for death benefits and maturity proceeds without FEMA complications.
    • Estate planning for NRIs is effective, as death benefits are paid directly to overseas nominees in foreign currency.

    How to Access GIFT City as an NRI — Step-by-Step Guide

    To access the benefits of GIFT City, NRIs need to follow the key steps mentioned below:

    Step 1: Submit KYC Documents

    You need to submit the necessary KYC documents to get started. These include passport, overseas address proof, prof of NRI status (such as Visa/OCI Card), bank statements from the NRI account (NRE/NRO/FCNR), and PAN Card or Form 60. These documents are required as per FEMA regulations and IFSCA KYC norms of GIFT City.

    Step 2: Choose the Activity Category

    You need to clearly define the purpose of investing via GIFT City financial instruments. It could be investing in securities via IFSC exchanges (India INX/NSE IFSC), opening a foreign currency deposit with an IBU, purchasing life insurance from IFSC IIO, or investing in AIFs or PMS. Having a well-defined financial goal is essential, as every type of instrument features different rules as well as different minimum/maximum investment limits.

    Step 3: Select a GIFT City Regulated Entity

    Choose a financial institution in GIFT City approved by IFSCA that meets your needs. For life insurance, choose a licensed IFSC insurance office. For investments, open an account with a registered broker or fund manager in the GIFT City IFSC.

    Step 4: Open Your GIFT City Account or Apply for Policy

    Complete your onboarding process for GIFT City by submitting KYC documents, signing agreements, and funding your account in foreign currency. To buy life insurance, fill out the form, complete medical underwriting if needed, and pay your first premium in the agreed foreign currency.

    Step 5: Transfer Funds from Overseas Account

    Transfer funds from your overseas bank account or FCNR/NRE account directly to your GIFT City entity in foreign currency. NRIs are not required to use the LRS route because direct foreign currency transfers are permitted.

    Step 6: Manage Investments and Repatriate Maturity Proceeds

    Ensure you periodically monitor your GIFT City investments by logging on the online portal. Maturity proceeds are received in foreign currency and can be easily repatriated to your overseas account without additional FEMA regulations for income from IFSC sources.

    Conclusion

    GIFT City in Gandhinagar, Gujarat, is one of the fastest-growing financial ecosystems in India, supporting foreign-currency financial activities. It allows participation by several foreign entities and NRIs in banking, capital markets, and insurance activities within GIFT City. Additionally, GIFT City allows for easy investments in foreign currency, enabling easy repatriation.

    Thus, GIFT City is a technology-driven, greenfield smart city and international financial services hub with world-class infrastructure that acts as a financial and technology gateway for India.

    FAQs about GIFT City

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    ARN: Apr26/Bg/24D

    Sources:

    https://www.idfcfirst.bank.in/finfirst-blogs/nri/what-is-gift-city

     https://giftgujarat.in/

     https://giftgujarat.in/about-us?section=giftcity-values-culture

    https://api.giftgujarat.in/public/tool-guiedes-for-setting/DoingBusinessatIFSC.pdf

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