GIFT City India’s New Financial Power Base Reshaping Global Business

Introduction

If you want to understand the real potential of India’s global finance ambition, you need to hear it from someone who is working inside the system every day. That is why the latest episode featuring CA Gaurav Kanudawala, Founder of GIFT CFO, is a must-listen. The conversation cuts through the noise and explains how GIFT City is rapidly becoming the place where Indian and global companies plan their international strategies, raise capital, and build future-ready financial operations.

The podcast is not just for entrepreneurs or finance professionals. It answers simple but important questions that students, NRIs, startup founders, and even salaried individuals often ask. What is GIFT City? Why are global institutions coming here? Can anyone participate? And most importantly, what opportunities can a regular Indian or NRI tap into right now?

This article breaks down the full podcast in a clear structure so you understand how GIFT City works and why it matters. You will find explanations, examples, and practical insights that reflect exactly what Gaurav Kanudawala shared in the episode.

Watch the full podcast here before reading: https://youtu.be/RT3flcy1e1s?si=yR2K3eMYCW2P4yly

Understanding the GIFT City Fundamentals

To begin with, Gaurav Kanudawala explains GIFT City in the simplest way possible. It is a planned global financial and technology centre built inside a Special Economic Zone with its own international-style regulator. Imagine a place where companies can work in foreign currencies, access global capital, and build cross-border financial businesses without leaving India. That is the essence of GIFT City.

Why the name GIFTGIFT stands for Gujarat International Finance Tec City. It reflects both the geographic origin and the ambition behind it. Many also relate it to the idea that the project is a gift to India’s economic future.

Location and scale The city is located between Ahmedabad and Gandhinagar, covering more than 880 acres with commercial towers, residential districts, finance hubs, fintech labs, schools, and upcoming global university campuses. More than 900 businesses already operate in different verticals, and the expansion continues rapidly.

The Purpose and Appeal of GIFT City

GIFT City was created to solve a longstanding problem. For decades, Indian companies, fund managers, and even wealthy families had to go abroad to set up international structures. Markets like Singapore and Dubai benefited from Indian capital because India did not have an equivalent ecosystem.

GIFT City changes that reality.It gives India a home base for global finance.

CA Gaurav Kanudawala explains that this matters to every type of person

• Business owners get a chance to expand globally at a lower cost.

• Professionals and students get access to modern finance careers that once required relocating abroad.

• NRIs gain a simpler and legally efficient way to invest in India or run global operations.

• Startups gain a regulated environment for cross-border fintech, fundraising, and digital financial products.

India’s strong economic momentum makes this even more relevant. With growth consistently above six per cent, the country needs a world-class financial gateway. GIFT City is designed to become exactly that.

How GIFT City Works with Regulations and Ecosystem

Inside GIFT City, the rules are different from those that apply in the rest of India. This is what gives it its unique advantage.

Who regulates the ecosystem?

Financial activities are regulated by IFSCA, the International Financial Services Centres Authority. It acts as a single window for approvals, compliance, and innovation. Unlike the multi-regulator system across India, here one authority oversees everything from banking to fintech to fund management.

City infrastructure, maintenance, and development are overseen by GIFT Gujarat.

What makes GIFT City different from regular SEZs

• A single unified financial regulator

• Operations allowed at international time zones

• Global products and markets

• Foreign currency transactions

• Smart city infrastructure, such as district cooling, underground utility tunnels, and integrated command centres

Who can operate here?

One of the highlights from the podcast is the clarity that both Indian and foreign players can participate. More than 70 activities are allowed, including

• international banking

• insurance offices

• fund management

• aircraft leasing

• fintech and regtech

• global capability centres

• capital market operations

• wealth and asset management

This makes the ecosystem diverse, competitive, and globally relevant.

Key Perks, Taxes, Transactions, and Sector Opportunities

GIFT City is most famous for its tax advantages, but the real story is deeper. Gaurav Kanudawala explains how different sectors use GIFT City in practical ways.

Sectors currently active

• International banks support trade finance, corporate banking, and treasury operations

• Fund managers set up AIFs and global funds

• Fintechs experiment with digital products through sandboxes

• Stock exchanges enable international trading for Indian and foreign investors

• Aircraft leasing and financing structures have begun gaining traction

• Insurance companies open offshore units for global business
  

Tax benefits everyone talks about

• Income tax exemption for ten years out of fifteen

• No GST on services used inside the IFSC for offshore clients

• No STT, CTT, or stamp duty on IFSC exchange transactions

• Attractive capital gains and dividend treatment for non-residents

• Lower MAT or AMT for applicable entities
  

Currency flexibilityCompanies can operate in multiple foreign currencies, such as USD or GBP, inside GIFT City. This reduces the friction of cross-border payments and makes global transactions far more efficient.

Opportunities for NRIs are increasingly using GIFT City to

• Invest in India through GIFT-based funds

• Run international investment structures

• gain tax-efficient exposure to Indian and global markets

  
  

Getting Started, Setup, and Global Comparisons

Gaurav Kanudawala offers clarity on how companies usually get started in GIFT City.

Basic setup path

1. Determine the eligible activity

2. Prepare the regulatory application

3. Secure office space and management roles

4. Complete compliance requirements

5. Receive IFSCA approval

Most setups take between two and six months, depending on the business model.

How GIFT City compares with global hubsCompared with Singapore or Dubai

• It is significantly more cost-effective

• Regulations are becoming modern and innovation-friendly

• There is strong access to Indian talent

• The Indian market is nearby, making operations easier

• The ecosystem is still young, giving early movers a clear advantage

Fintechs, fund managers, and global companies often see 20% to 30% operational savings when shifting part of their structure to GIFT City.

Talent Jobs and Daily Life in GIFT City

A question many people have is whether GIFT City is only for large corporations. The podcast makes it clear that the answer is no.

Space for everyone, Small firms, boutique fund managers, startups, legal and consulting firms, and financial service providers are all entering the ecosystem.

Talent: The workforce is growing steadily. Finance, accounting, compliance, analytics, cybersecurity, and technology roles are in high demand. Universities and international education partners are developing specialised programmes directly linked to IFSC careers.

Lifestyle and infrastructure

• Walk to work design

• Residential zones

• Metro access to Ahmedabad and Gandhinagar

• Schools, hospitals, sports, and community facilities

• Clean, modern, and low-congestion environment

The experience feels more global than most Indian cities, which is part of its appeal.

The Road Ahead for the Future of GIFT City

The next few years will be transformative. Major global banks, fund managers, fintech platforms, and corporates are expected to establish larger operations. Foreign currency settlement, international trading, global university campuses, and rapid infrastructure expansion are all in motion.

Leading industry estimates suggest that GIFT-based funds could cross significant multi-billion dollar commitments by the end of the decade. With high-speed rail and better connectivity on the way, the city is positioning itself as a long-term financial gateway for India.

Conclusion and Invitation

GIFT City is shaping into a powerful global financial ecosystem, and the podcast featuring Gaurav Kanudawala offers one of the clearest explanations available today. If you want to understand where Indian finance, fintech, global business, or investment structures are heading, this conversation is essential.

Watch the complete podcast herehttps://youtu.be/RT3flcy1e1s?si=yR2K3eMYCW2P4yly

If you want personalized guidance on setting up or investing in GIFT City, visit giftcfo.com.