economy
Inside India newsletter: Why global funds are flocking to GIFT City in Modi’s home state
Favorable regulations, a growing local investor base, and tax holidays are giving momentum to India's GIFT City.
TL;DR
- GIFT City is experiencing increased activity from asset management companies, driven by domestic investor demand for global markets.
- Relaxed rules for foreign currency usage and tax sops are making GIFT City more attractive, bringing it closer to global financial center standards.
- Standard Chartered plans to launch its Signature CIO funds from GIFT City, expanding its wealth management business.
- BlackRock, through its joint venture with Jio Financial Services, is also looking to launch global ETFs from GIFT City.
- Funds operating from GIFT City are not subject to outbound investment limits, allowing them to tap into the growing pool of Indian investors.
- While GIFT City has regulatory parity with global centers, it needs to shed its India-specific image and enhance lifestyle benefits to compete with places like Singapore and Dubai.
- Experts believe GIFT City has potential, with some predicting it to become a key global financial center by 2030.