For years, Indian businesses routed certain financial activity through Singapore, Dubai, or Mauritius. GIFT City was built to pull that activity back onshore. In July 2023, it won its biggest proof of concept yet: NIFTY futures trading itself moved there from Singapore.
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Indian Economy · IndEco0166
GIFT City & IFSC
India’s first International Financial Services Centre
2007
GIFT City is conceptualised, under Gujarat‘s then Chief Minister, Narendra Modi.
28 Jan 2011
Its foundation stone is laid, by Finance Minister Pranab Mukherjee.
2015
GIFT City becomes operational, as India’s first IFSC.
27 Apr 2020
IFSCA is established, as a single unified financial regulator for the zone.
3 Jul 2023
SGX Nifty migrates from Singapore, becoming GIFT Nifty at GIFT City.
2026
Over 1,150 entities are now registered; its banking sector reaches about $106 billion.
10 Jul 2026
IFSC units are exempted from a Coastal Shipping Act licensing requirement.
Onshore, but treated as offshore
Even though it sits physically in Gujarat, GIFT City’s IFSC is treated as being outside India for certain tax and foreign-exchange purposes — the whole point being to make “offshore” financial activity happen on Indian soil.
Timeline
- 2007: GIFT City is conceptualised, under Gujarat’s then Chief Minister, Narendra Modi.
- 28 January 2011: Its foundation stone is laid, by Finance Minister Pranab Mukherjee and Chief Minister Narendra Modi.
- 2015: GIFT City becomes operational, as India’s first International Financial Services Centre.
- 27 April 2020: The International Financial Services Centres Authority (IFSCA) is established, as a single unified regulator for the zone.
- 3 July 2023: SGX Nifty migrates from Singapore Exchange, becoming GIFT Nifty at GIFT City.
- 2026: Over 1,150 entities are now registered with IFSCA. Its banking sector reaches about $106 billion.
- 10 July 2026: IFSC units are exempted from a licensing requirement under the Coastal Shipping Act, 2025.
Must Know
- GIFT City (Gujarat International Finance Tec-City), in Gandhinagar, is India’s first International Financial Services Centre (IFSC).
- It was conceptualised in 2007, and became operational in 2015.
- The International Financial Services Centres Authority (IFSCA) regulates it. IFSCA was established on 27 April 2020, under the IFSCA Act, 2019.
- GIFT City is also a Special Economic Zone (SEZ). Its units get a 100% income tax exemption, for 10 consecutive years within their first 15 years.
- On 10 July 2026, the government exempted IFSC GIFT City units from a licensing requirement under the Coastal Shipping Act, 2025. This covers chartering foreign vessels.
- GIFT City now hosts over 1,150 entities registered with IFSCA. Its banking sector is worth about $106 billion.
- In 2023, GIFT City won a landmark deal. NIFTY futures trading, worth $7.5 billion, moved there from Singapore, becoming GIFT Nifty.
Good to Know
- GIFT City exists to bring offshore financial activity back onshore. Indian businesses had long used centres like Singapore, Dubai, and Mauritius for certain financial activities.
- IFSCA is a single unified regulator. It combines functions otherwise split across the RBI, SEBI, IRDAI, and PFRDA, but only within the IFSC.
- The Coastal Shipping Act exemption removes the need for IFSC units to get a Director General of Shipping licence. This applies to chartering foreign vessels for EXIM and international trade.
- The exemption doesn’t touch India’s cabotage rules, its coastal trade protections. It only applies to EXIM and international trade operations.
- GIFT City’s foundation stone was laid on 28 January 2011, by then-Finance Minister Pranab Mukherjee and then-Gujarat Chief Minister Narendra Modi.
- IFSC units also get GST exemption on services rendered to overseas clients, and a reduced Minimum Alternate Tax (MAT).
- India’s International Bullion Exchange (IIBX) also operates out of GIFT City.
Test Yourself
Great to Know
- See IndEco0148 — Maritime Sector in India, covering the 2025 Coastal Shipping Act that this exemption modifies.
- Both of India’s major stock exchanges operate from GIFT City. See IndEco0157 — NSE (which runs NSE IX, formerly NSE IFSC) and IndEco0158 — BSE (which runs India INX).
- GIFT Nifty’s move from Singapore is the clearest proof that GIFT City’s core purpose is working as designed.
- IFSC units are treated as being outside India, for certain tax and foreign-exchange purposes, even though physically located in Gujarat.
- GIFT City spans about 886 acres, in Gandhinagar, Gujarat’s own capital city.
Current Affairs
- On 10 July 2026, the government exempted IFSC GIFT City units from the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. This applies to chartering foreign vessels for EXIM and international trade. (Source: PIB, 10 Jul 2026)
- The exemption was notified by the Ministry of Ports, Shipping and Waterways, and takes effect immediately. It’s meant to strengthen GIFT City as a global maritime leasing and financing hub. (Source: PIB, 10 Jul 2026)
- Union Minister Sarbananda Sonowal called it part of unlocking “the full potential” of the maritime industry, after 12 years of reforms under PM Modi. (Source: PIB, 10 Jul 2026)
- The reform is expected to encourage ship-owning and leasing structures in India, and attract more global capital into Indian-based maritime assets. (Source: PIB, 10 Jul 2026)
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