India is making a bold statement on the global financial stage, and at the heart of this ambition is GIFT City; the country’s first operational smart city and International Financial Services Centre (IFSC). This isn’t merely a new postcode; it is a powerful emblem of India’s drive to become a leading player in international trade and finance.
For companies like M1 NXT, setting up operations in this hub wasn’t just a choice; it was a strategic move to align with a future-ready ecosystem. GIFT City perfectly combines cutting-edge infrastructure, a remarkably agile regulatory environment, and policies designed specifically to attract and support global investors.
Now rapidly expanding, the city is firmly establishing itself as a compelling, competitive alternative to established financial giants such as Singapore, Dubai, London, and Hong Kong.
What gives GIFT City the edge?
The rise of GIFT City is underpinned by several key advantages that make it particularly attractive to global businesses:
1. Unmatched fiscal efficiency: In the world of international finance, every basis point counts. GIFT City offers an exceptionally attractive tax regime, designed to supercharge growth:
- 100% income tax exemption for any 10 consecutive years out of the first 15 years of operation (subject to eligibility).
- Most services provided to or received by IFSC units (or offshore clients) are exempt from GST, though transactions with India’s domestic tariff area may still attract GST.
Compare this to the corporate tax rates in other major hubs; Singapore’s 17%, Dubai’s 9%, or London’s 19% and the financial benefit of operating here becomes instantly clear.
2. A streamlined regulatory landscape: The regulatory environment in the IFSC is purpose-built for speed and clarity. It is overseen by the International Financial Services Centres Authority (IFSCA), a dedicated body focused solely on facilitating global business. IFSCA acts as a unified regulator for all financial activities in the IFSC, covering banking, insurance, capital markets, and fintech — ensuring consistency and agility across sectors. This model ensures:
- Single-window clearance for setting up an operation, significantly cutting through bureaucracy.
- Lighter, tailored compliance rules that are specifically designed for the needs of international financial markets, not domestic ones.
3. Complete multi-currency flexibility: To truly participate in global commerce, businesses require total operational freedom. GIFT City provides this by allowing IFSC units full flexibility to deal in any foreign currency. This is essential for:
- Seamless cross-border settlements, which are critical for trade finance.
- Effective hedging and risk management without the friction of domestic currency rules.
Financial institutions operate through International Banking Units (IBUs) regulated by IFSCA, enabling smooth global operations in multiple currencies.
4. A prime geopolitical position: Strategically located, GIFT City acts as a crucial bridge between India, the rapidly growing markets of Southeast Asia, and the established economic powerhouses of the Middle East. This location offers a cost-effective and efficient access point for global firms looking to tap into both regional trade flows and worldwide supply chains.
5. Built for the digital age: From the ground up, the city was engineered with a digital-first mindset. It actively promotes:
- Paperless, real-time transactions, increasing speed and transparency.
- The rapid adoption of fintech innovations, including specialised International Trade Finance Services (ITFS) platforms, blockchain applications, and digital documentation standards.
This digital foundation is further strengthened by the presence of IFSC exchanges and fintech platforms that support cross-border transactions, blockchain-based trade finance, and fund management services.
Looking ahead
While the traditional financial capitals still hold sway, GIFT City is not attempting to replicate the past. Instead, it’s carving out a unique space by offering a more efficient, digitally sophisticated, and strategically placed alternative.
Backed by strong government policy support and consistent regulatory updates from IFSCA, GIFT City continues to evolve as India’s most advanced financial ecosystem, with fiscal incentives currently available up to FY 2030.
As the future of international trade demands greater speed, transparency, and inclusivity, GIFT City is rising to meet that challenge. M1 NXT is proud to be established in this innovative environment, playing its part in this remarkable evolution of global finance.