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GIFT City and Its Role in Shaping the Future of Wealth and Asset Management in India

  • Writer: GIFT CFO
    GIFT CFO
  • 4 days ago
  • 4 min read

The future is changing fast. And GIFT City is leading that change for India.

Gujarat International Finance Tec City, known widely as GIFT City, has become one of the most important financial hubs in Asia. It is shaping how wealth is managed, how global investments move, and how India positions itself as a strong destination for financial services. With growing interest from investors across the world and increasing participation from leading wealth management companies in India and top asset management companies in India, this financial ecosystem is entering a new phase of growth.

This article explains how GIFT City works, why it matters, and how it is creating new investment opportunities in India for individuals, businesses, NRIs, and global funds.


Eye-level view of modern financial district with skyscrapers

Understanding the Rise of GIFT City as India’s Global Financial Gateway

GIFT City is India’s first International Financial Services Centre IFSC. It was created to bring global-level financial services to India, reduce capital outflow, and provide a strong platform for cross-border investments.

Today, the IFSC in GIFT City already houses banks, fintech companies, fund management firms, insurance players, and global enterprises.

According to the International Financial Services Centres Authority IFSCA more than USD 50 billion in cumulative business transactions were recorded in GIFT City in 2024, covering banking, aircraft leasing, gold bullion funds, ds, and insurance activities.

This reflects rapid growth and trust among investors, businesses, and global institutions.


Why GIFT City Matters for Wealth and Asset Management

GIFT City is not just another financial hub. It solves key challenges that earlier limited India’s presence in global finance. It provides clarity, transparency, and tax efficiency for wealth and asset management activities that serve both domestic and international investors.

Here is why the ecosystem is becoming a strong base for the best wealth management companies in India and global players.


Stable and Supportive Policy Environment

GIFT City functions under a unified regulator, IFSCA, which ensures faster approvals and clear rules. This significantly reduces delays that traditionally affected financial services in India.

For wealth and asset management companies, this means • quicker fund registration • easier cross-border movement of capital • simplified compliance

This directly helps investors who are looking for safe and structured investment opportunities in India.


Tax Benefits That Encourage Investment Growth

Businesses operating in the IFSC enjoy several tax incentives, such as • zero GST on financial services offered to IFSC clients • no capital gains tax for certain categories of funds • no securities transaction,x, commodity transaction, tax or stamp duty

For asset managers and investors, this means more efficient returns with fewer cost burdens.

India Tax Report 2024 highlights that funds operating from the IFSC save between 10 percent 18% in tax leakage compared to operations outside the IFSC.

Such savings attract foreign investors, global banks, family offices, and high-net-worth individuals.


Growing Presence of Global and Domestic Funds

The number of fund management entities in GIFT City has grown rapidly.

IFSCA reported that over 120 Fund Management Entities were registered in GIFT City by the end of 2024, including domestic fund houses, global asset managers, and alternative investment funds.

This growth benefits investors because they now have access to • international investment products • diversified global portfolios • long-term wealth creation tools

The presence of these firms also strengthens India’s standing in global financial markets.


New Investment Opportunities in India Created Through GIFT City

One of the biggest advantages of GIFT City is that it opens global markets for Indian investors and makes India more attractive to international investors.

Today, GIFT City supports • global equity investments • foreign bonds • alternative investment funds • sustainable finance projects • fintech-driven wealth solutions • aircraft and ship leasing • bullion trading

For anyone searching for broader investment opportunities in India, the ecosystem offers a safe, organized, and progressive environment.

NRIs also find GIFT City attractive because it makes compliance easier while offering global investment access without operational barriers.


How GIFT City Supports the Growth of Wealth and Asset Management Companies in India

The infrastructure and regulatory environment inside the IFSC make it easier for companies to build advanced financial products such as • cross-border investment funds • portfolio management services • private equity vehicles • venture capital structures

These offerings are aligned with international standards, which improves confidence among investors.

Because of this, many top wealth management companies in India and established asset management companies in India have expanded operations inside GIFT City.

The ecosystem also encourages innovation in • digital onboarding • AI-driven advisory • cost-efficient compliance • faster settlement systems

This ensures wealth management becomes more transparent and accessible for small investors as well as high-net-worth families.


Why Investors Trust GIFT City for Wealth and Asset Management

Here are the reasons investors are choosing the IFSC for long-term financial planning and portfolio growth.


Access to Global Markets

Investors can diversify globally while being based in India.


Lower Costs and Tax Efficiency

Lowers the burden on wealth creation and improves overall portfolio performance.


High Transparency

GIFT City operates under international rules that improve investor confidence.


Stronger Protection for Investors

A unified regulator provides better grievance redressal, faster decision-making, and clearer guidelines.


Ease of Doing Business

Financial transactions that require multiple approvals elsewhere are simplified inside the IFSC.


The Future of Wealth and Asset Management Through GIFT City

India is expected to experience strong economic growth over the next decade. With rising income levels, growing participation in financial markets, and increasing interest from global investors, the demand for structured wealth and asset management services will continue to rise. According to the India Wealth Report 2024, India’s financial wealth is expected to reach USD 18 trillion by 2030, driven by rising incomes and business expansion.

GIFT City is positioned to become the central hub that manages a significant portion of this wealth.

The future will bring • more global institutions entering the IFSC • new fund structures • digital-only wealth platforms • stronger participation from NRIs • wider access for retail investors

This will benefit investors seeking growth, stability, and global diversification.


Conclusion 

GIFT City has already changed India’s financial landscape. With strong regulation, global market access, tax efficiency, and a growing base of fund managers, the IFSC is becoming the foundation for the future of wealth and asset management in India.

For investors, this means better choices, lower costs, and access to international markets. For businesses, it means a modern financial ecosystem that supports innovation and long-term growth. And for the country, it positions India as a competitive global financial hub.

With its expanding opportunities and rising global presence, GIFT City is not just shaping the future of wealth and asset management in India; it is helping build a stronger financial future for the world.

 
 
 

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