New Delhi / GIFT City, India – India is strengthening its appeal as a global business hub by expanding incentives for multinational corporations (MNCs) to establish their India Holding Company or Regional Treasury Centre through the GIFT City International Financial Services Centre (IFSC). Facilitated by the IFSCA (International Financial Services Centres Authority) and Invest India, these measures are designed to attract global firms to route their India investments through a world-class, tax-efficient structure.
Competitive Advantages
- Capital Gains Exemption: Units in GIFT City IFSC are exempt from capital gains tax on transfer of securities and derivatives, significantly improving investment efficiency.
- GST Exemption: Services provided by IFSC units to entities outside India, and inter-unit transactions within IFSC, are exempt from GST.
- 100% Foreign Ownership: Full foreign ownership rights for holding companies and special purpose vehicles (SPVs) established in GIFT City under IFSCA regulations.
- RBI Simplified Reporting: FEMA exemptions and simplified RBI reporting for transactions conducted through GIFT City IFSC entities.
"GIFT City is India's global financial platform, combining the regulatory sophistication of Singapore with the scale of India's USD 5 trillion economy ambition," said a spokesperson from IFSCA.
Target Sectors
IFSCA incentives specifically benefit sectors aligned with India's Amrit Kaal 2047 economic vision:
- Financial Services and Fintech (SEBI-regulated fund structures, Hedge Funds, AIFs)
- Green Bonds and Sustainable Finance (ESG-linked instruments)
- Aircraft and Ship Leasing (under IFSCA Aircraft Leasing Regulations)
- Wealth Management and Family Offices
Why GIFT City?
Beyond tax efficiency, GIFT City offers a modern infrastructure, dedicated regulatory sandbox for fintech, access to India's deep capital markets, and a skilled workforce — making it an unmatched destination for Asia Pacific holding and treasury structures.