For Singapore-based companies eyeing expansion into India’s fast-growing market, Gujarat International Finance Tec-City (GIFT City) offers a compelling proposition. Located in Gandhinagar, Gujarat, GIFT City is India’s first International Financial Services Centre (IFSC) and a Special Economic Zone (SEZ) designed to rival global financial hubs like Singapore itself. As of March 2025, this smart city is emerging as a strategic gateway for Singapore firms looking to tap into India’s economic potential while enjoying a host of unique advantages. Here’s why GIFT City could be the perfect launchpad for your business.
1. A Tax-Friendly Destination
Singapore companies are no strangers to a business-friendly tax regime, and GIFT City mirrors that appeal with its own set of fiscal incentives. Businesses setting up in GIFT City’s IFSC enjoy a 10-year income tax holiday on profits earned from operations within the zone, with the flexibility to choose any 10 years within the first 15 years of operation. Additionally, there’s no Goods and Services Tax (GST) on services provided to offshore clients or within the IFSC, and capital gains taxes on certain transactions are waived. Compared to the complexities of India’s broader tax system, this streamlined approach reduces financial overheads, allowing Singapore firms to maximize returns on their Indian ventures.
2. Seamless Access to Global Markets
Singapore’s reputation as a global financial hub stems from its connectivity and market access. GIFT City offers a similar edge, but with a twist—it’s a deemed foreign jurisdiction within India. This means Singapore companies can operate in foreign currencies (like USD) without the restrictions of India’s Foreign Exchange Management Act (FEMA), making cross-border transactions smoother than ever. For firms accustomed to Singapore’s liberalized currency environment, GIFT City provides a familiar operational framework while opening doors to India’s vast domestic market and its growing influence in Asia.
3. Cutting-Edge Infrastructure with Cost Efficiency
Singapore companies thrive on world-class infrastructure, and GIFT City delivers just that—state-of-the-art office spaces, plug-and-play facilities, and smart city technologies—all at a fraction of the cost of operating in Singapore. The city’s sustainable design and modern amenities, including high-speed connectivity and robust data centers, cater to industries like fintech, banking, and IT, which are staples of Singapore’s economy. For a Singapore firm, this means setting up a high-quality operation in India without the hefty price tag of a traditional metro like Mumbai or Delhi.
4. A Unified Regulatory Framework
Navigating India’s regulatory landscape can be daunting, but GIFT City simplifies the process with a single-window clearance system under the International Financial Services Centres Authority (IFSCA). This unified regulator combines oversight typically split among multiple Indian bodies (like the Reserve Bank of India and Securities and Exchange Board of India), offering a streamlined experience akin to Singapore’s efficient bureaucracy. For Singapore companies, this reduces setup time and compliance burdens, allowing them to focus on growth rather than red tape.
5. Strategic Time Zone Advantage
Located between Singapore and Middle Eastern financial hubs like Dubai, GIFT City’s time zone (IST, UTC+5:30) bridges East and West seamlessly. This is a boon for Singapore firms (SGT, UTC+8) managing global operations, as it enables real-time collaboration with both Asian and European markets. For businesses in trading, fund management, or customer support, this positioning enhances operational flexibility and client reach—an advantage Singapore companies already leverage from their own location.
6. A Fintech and Innovation Hub
Singapore is a global leader in fintech, and GIFT City is quickly carving out a similar niche. With dedicated fintech sandboxes and incentives for innovation, it’s an ideal testing ground for Singapore tech firms looking to develop or scale solutions for the Indian market. The IFSCA’s supportive policies, coupled with access to India’s vast consumer base, provide a fertile environment for collaboration or competition—something Singapore companies can capitalize on to stay ahead in the region.
7. Talent and Cost Synergies
India’s skilled workforce is a major draw, and GIFT City enhances this advantage with proximity to talent pools in Gujarat and beyond. For Singapore firms accustomed to hiring top-tier professionals, GIFT City offers access to English-speaking, tech-savvy employees at significantly lower labor costs than in Singapore. Plus, state subsidies—like job creation incentives and provident fund reimbursements—sweeten the deal, making it easier to build a robust team without breaking the bank.
8. A Competitive Edge Over Traditional Routes
Historically, Singapore companies investing in India have routed funds through jurisdictions like Mauritius or Singapore itself to optimize taxes and compliance. GIFT City flips this model by offering comparable (or better) benefits onshore. With no need for a Permanent Account Number (PAN) for non-residents opening bank accounts and liberalized repatriation norms, it’s a direct, cost-effective alternative that keeps operations closer to the Indian market—reducing latency and enhancing control.
Final Thoughts: Why GIFT City Makes Sense
For Singapore companies, GIFT City blends the best of both worlds: Singapore’s globalized, business-friendly ethos with India’s economic dynamism. Whether you’re in finance, technology, or trade, this IFSC offers a low-risk, high-reward entry point into one of the world’s fastest-growing economies. As of March 2025, GIFT City is no longer just an experiment—it’s a thriving hub gaining traction among global players, including those from Singapore. If your company is ready to expand into India, GIFT City isn’t just an option; it’s a strategic advantage waiting to be seized.
Ready to explore GIFT City for your next move? The future of Singapore-India business synergy might just be here.
In our next pieces we would share the benefits and procedures of setting up business in GIFT city and directly in the Indian Territory (Domestic Area).