Why global funds are flocking to GIFT City in Modi’s home state
Hello, this is Priyanka Salve, writing to you from Singapore.
Welcome to the latest edition of “Inside India“ — your one-stop destination for stories and developments from the world’s fastest-growing large economy.
India’s Gujarat International Finance Tec-City, also known as GIFT City, aspires to be what Hong Kong is to mainland China, or what Dubai International Financial Center is to the United Arab Emirates. While progress has been slow, after more than a decade of its launch, GIFT City is finally drawing interest from leading asset management firms.
I spoke with experts to figure out if India’s first and only global financial center is finally coming into its own.
Any thoughts on today’s newsletter? Share them with the team.
The big story
Signage in Gujarat International Finance Tec-City (GIFT City) in the suburbs of Ahmedabad, Gujarat, India, on Wednesday, May 21, 2025.
Bloomberg | Bloomberg | Getty Images
A strong domestic investor appetite for global markets, relaxed rules for foreign currency usage, and increasing tax sops are driving leading asset management companies to India’s GIFT City, more than a decade after its launch.
GIFT City, located in Prime Minister Narendra Modi’s home state of Gujarat, is emerging as an important gateway for international investors looking to access India’s growth opportunity, as well as resident Indians seeking international wealth solutions, experts said.
Earlier this year, the government improved tax structures to put GIFT City on par with global financial centers such as Singapore, said Rajesh Gandhi, Partner at Deloitte India.
While these tax benefits are driving inbound investment, the government has also loosened capital controls on outbound investments made via the City, Gandhi said, adding that his firm was seeing an increase in outbound and inbound funds being set up in India’s first global financial center.
Global fund houses are waking up to the pent-up demand from Indian investors for overseas markets such as the U.S., and GIFT City offers the most convenient route, according to experts.
Global interest
Last week, Standard Chartered announced plans to launch its Signature CIO funds from GIFT City.
Samir Subberwal, global head of wealth solutions, retail products, data and analytics at Standard Chartered, told CNBC that the company will launch the funds “in the coming weeks” and plans to expand its suite of wealth solutions over time.
The British international banking group was among the first foreign banks to start operating out of GIFT City in 2020. And with the launch of Signature CIO funds, it plans to expand its wealth management business in what Subberwal describes as “one of the world’s fastest-growing international financial centres.”
Government data shows that fund management entities in the city increased to 217 in May this year from 194 in November last year.
Another major global asset manager, BlackRock, through its joint venture with Indian billionaire Mukesh Ambani’s Jio Financial…
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