Gift City, short for Gujarat International Financial Tec-City, is an ambitious project envisioned by the government of Gujarat to create a one-of-a-kind financial centre in India. GIFT City is designed to be a global financial hub rivalling premier international financial zones such as La Defense, London Dockyards, Shinjuku, Lujiazui etc. Gift City, which covers 886 acres and is located on the Sabarmati River’s banks, seeks to serve as a centre for global banking, trade, and business.

The development of Gift City is crucial for the Indian economy as it aims to bring in international investment and boost employment opportunities. Gift City also has the potential to significantly boost the GDP of the nation and establish India as a key player in the international financial sector.

Why should startups consider opening a GIFT City Account?

  1. You can bring your funds to India without having to convert the same in INR and losing out on currency conversion (i.e keeping the USD amount intact as it is)
  2. The same is repatriable and can be transferred back to the US whenever you like
  3. You can earn a yield of up to 5.4% on Term Deposits
  4. No tax or filing obligations
  5. GIFT City IFSC acts as an International bank
  6. Regulated by RBI, SEBI, PFRDA and IRDAI

In case you don’t have a US account, Razorpay can help your startup with a multi-currency account in the US. This account can be used to receive funds from any US bank (including SVB) through a domestic transfer, park them and then move funds from this account to a GIFT city account (US-denominated account facilitated by Indian banks) or another US account This can be activated in a few hours for existing Razorpay PG users.

GIFT City Special Economic Zone (SEZ): 

Designed to encourage exports and foreign investment, this zone is for multinational corporations. A variety of advantages are available to businesses operating in this zone, including tax exemptions, duty-free imports and exports, and streamlined regulatory processes. 

The most important commercial centres under SEZ are: 

International Financial Services Centre (IFSC): This division is the main focus of GIFT City and is India’s first IFSC. It is designed to cater to the financial services industry and provides a world-class business environment.

Domestic Finance Centre (DFC): This division is designed to cater to the needs of the domestic financial services industry. It provides a platform for the growth of Indian financial services companies.

GIFT City Timeline: 

Gift city timeline

Services offered by GIFT City:

Gift City services

Why is GIFT City important?

GIFT City can contribute immensely to the Indian economy due to the following reasons:  

Boost to Financial Sector: Gift City has been designed to serve as a hub for India’s financial sector, providing world-class infrastructure and facilities for banks, insurance companies, and other financial institutions. This will expand India’s financial sector India and further strengthen the country’s position as an economic leader. 

Attract Foreign Investment: With its business-friendly policies, SEZ status, and state-of-the-art infrastructure, Gift City is well-positioned to attract foreign investment from around the world, helping to create jobs and drive economic growth in India.

Encourage Startups & Innovation: Gift City’s focus on innovation and entrepreneurship has the potential to encourage the growth of startups and new businesses, which can help drive innovation and create new jobs in India.

Reduce Dependence on Foreign Financial Centres: Gift City has the potential to reduce India’s dependence on foreign financial centres such as Singapore and Hong Kong, by providing a world-class alternative for businesses looking to expand their operations in Asia.

Strengthen India’s Position in the Global Economy: By developing a world-class financial centre in Gift City, India can strengthen its position in the global economy and increase its influence in international financial markets.

GIFT City Advantages: 


Special Economic Zones (SEZs) aim to attract Foreign Direct Investment and improve the economy by exporting products and services and finding markets globally. They have defined areas where units may be set up for specified purposes of manufacturing/ trading or allied services for export. SEZs are treated as foreign territories for trade operations i.e., goods and services going into SEZ are treated as exports and goods and services coming from the SEZ as imports. They offer well-developed areas of infrastructure with built-up space, power, water supply, transport, housing etc. including physical and social infrastructure facilities.


The International Financial Services Centre (IFSC) in Gift City provides a range of advantages for businesses and investors. This includes a wide range of financial services like stock exchanges, trading members, corporate banking, ECB lending, general insurance, life insurance, portfolio management services, and risk management. 

Providing these services in a single location, the IFSC makes it easier for businesses to grow and expand. The IFSC also provides a range of tax incentives and regulatory benefits, including exemptions from securities transaction tax and capital gains tax, making it an attractive destination for investors. Overall, the IFSC in Gift City is an important step towards positioning India as a leading financial centre in Asia, providing businesses with access to world-class infrastructure and services, as well as a supportive regulatory environment that encourages investment and innovation.

These are expected to benefit the economy in multiple ways:

Gift city benefits- Economy

Tax Benefits of GIFT City-

Gift city benefits- Tax

Impact on the Indian Startup Economy 

Access to Funding: Gift City has the potential to attract significant foreign investment, which can help to provide Indian startups with access to much-needed funding for growth and expansion.

Business-Friendly Policies: The Indian government has implemented a number of business-friendly policies in Gift City, including tax incentives, streamlined regulatory procedures, and a single-window clearance system, which can help to make it easier for startups to do business.

Support for Innovation: Gift City has a strong focus on innovation and entrepreneurship, which can help to support the growth of Indian startups by providing them with access to world-class infrastructure and facilities.

Collaboration Opportunities: Gift City is home to a diverse mix of businesses, including banks, insurance companies, and IT companies, which can provide Indian startups with opportunities for collaboration and partnership.

Access to Skilled Workforce: The region surrounding Gift City has a large pool of highly skilled and educated professionals, including engineers, accountants, and IT specialists, making it easy for startups to find the talent they need to grow and thrive.

Exposure to International Markets: Gift City’s location and focus on attracting foreign investment can provide Indian startups with exposure to international markets, which can help to expand their customer base and increase their revenue.

Sustainability Focus: Gift City has a strong focus on sustainability, with a commitment to environmental sustainability and energy efficiency. This can help to attract startups that are committed to environmental responsibility and sustainability.

In conclusion, Gift City is a game-changer for the Indian startup ecosystem. It offers startups a favourable environment to grow and succeed, with access to financial incentives, world-class infrastructure, a skilled workforce, and a large consumer market. With its strategic location and state-of-the-art facilities, Gift City has the potential to become a major contributor to the Indian economy and position India as a major player in the global financial market.

The recent SVB crisis has also created an opportunity for Gift City to reinvent itself and attract new investors. With around 200$ million already being transferred into the Gift City, many more founders will be looking to invest their funds in India. The government has also recognized the need to promote Gift City as a viable alternative to other financial centres in Asia, such as Singapore and Hong Kong. As a result, it has taken steps to improve the infrastructure and regulatory framework in Gift City, making it more attractive to both foreign & domestic investors.


1. What are the advantages of investing in Gift City?

The advantages of investing in Gift City include access to world-class infrastructure and facilities, a business-friendly regulatory environment, tax incentives, and a strategic location near major airports, highways, and railways.

2. How is Gift City different from other financial centres in India?

Gift City is designed to be a world-class financial centre, with modern infrastructure and facilities, a business-friendly regulatory environment, and tax incentives. It is also strategically located near major airports, highways, and railways, making it easy for businesses to access.

3. What is the benefit of registering in GIFT City?

The key benefits of registering in Gift City include access to world-class infrastructure and facilities, a business-friendly regulatory environment, and tax incentives. Businesses can take advantage of the SEZ status, which provides a range of benefits, including tax breaks and duty-free imports. Additionally, businesses operating in Gift City can benefit from streamlined regulatory procedures, a single-window clearance system, and a range of financial services, including banking, insurance, and asset management.


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