How India’s GIFT City is opening new opportunities for institutions

With GDP growing at 6.5% and a strong domestic consumption story, India is firmly on the radar for international investors and global financial institutions.¹ It remains the world’s fastest-growing major economy, despite pressure from US trade tariffs and an uncertain global outlook.

India’s vibrant capital markets are central to its appeal. The asset management industry is booming: assets held by mutual funds in India have trebled in the past five years to INR74.4 trillion (USD848 billion) as of June 30.² The IPO market is also thriving, with Indian companies raising a record INR1,624 billion through IPOs in 2024–25.³

The Gujarat International Finance Tec-City, or GIFT City, is part of this growth story. By connecting international institutions with India’s domestic markets, GIFT City is creating new financing, investment and insurance opportunities that will ultimately benefit India’s growing businesses.

“Accessing India’s markets can be challenging for international institutions that do not already have a presence on the ground, which makes GIFT City an attractive gateway. Improving access for international investors and encouraging foreign direct investment can make a powerful contribution to India’s future economic growth,” said Ashish Tripathi, Head of HSBC Gift City.

GIFT City is India’s first international financial services centre. With no capital controls and an attractive tax regime, it is rapidly gaining traction among offshore institutions looking for growth opportunities in banking and capital markets, asset management and insurance.

As of March 2025, 864 regulated entities have been established in GIFT City across 35 sectors, facilitating total banking and fund management inflows of USD50 billion.⁴ Total banking assets in the zone have since grown rapidly, reaching USD88.5 billion as of March 2025.⁵

GIFT City has attracted major asset managers, insurance companies and many other firms, and the momentum remains strong.

Abu Dhabi Investment Authority (ADIA), the UAE’s largest sovereign wealth fund, opened an office in GIFT City in October 2024, from which it intends to invest USD4-5 billion in India.⁶ Other sovereign funds are also said to be considering similar moves.

In the re-insurance segment, Hong Kong-based Peak Re⁷ and Singapore Reinsurance Corp⁸, a unit of Fairfax Financial, each received a license to operate in early 2025.

GIFT City gives international institutions an attractive route into India’s capital markets, without the cost, time and complexity of opening onshore accounts or applying for domestic licences. It offers a streamlined regulatory approval process involving just one unified body, as well as tax advantages, advanced infrastructure and a high standard of living.

A rule change at the end of June 2025 has increased the appeal to asset managers by allowing fund management entities in GIFT City to service third parties, creating a new growth opportunity for fund managers to expand their platforms beyond self-managed products.⁸

The continued momentum behind GIFT City is also a sign of international confidence in India as a driver of long-term growth.

Many international institutions are looking to expand in India’s domestic market. Jio BlackRock Asset Management, a joint venture between Reliance Industries’ Jio Financial Services and US-based BlackRock, launched in May 2025 and raised over INR178 billion in its first fund offering from over 90 institutions and 67,000 individual investors.¹⁰ German insurer Allianz in July agreed a reinsurance joint venture with Jio to serve the high-growth insurance market in India.¹¹

“The internationalisation of the Indian capital markets presents a range of exciting opportunities for international institutions who are looking for exposure to the country’s long-term growth trajectory,” said Anita Mishra, Head of Markets & Securities Services, HSBC India. “The rapid growth of asset management and insurance activities in GIFT City is testament to the potential to deepen connectivity between the onshore and offshore markets.”

For HSBC, the growth of the GIFT City business is an important part of the bank’s continued investment in India.

HSBC began operations in GIFT City in January 2021, and it was the first bank to get its license from the unified regulator IFSCA and the first international bank to get Investment Banking permission and Foreign Portfolio License. The bank expanded its GIFT City presence in early 2025 with a new 12,550 sq ft office providing a full suite of wholesale and wealth management services.¹²

HSBC GIFT City helps open new opportunities for institutional clients with its full-fledged banking suite of products, from cash management and trade solutions to accessing global markets with solutions such as cash conversion, hedging, FX and total return swaps.

With origins in India dating back to the founding of the Mercantile Bank of India in Mumbai in 1853, HSBC’s own history is closely intertwined with the development of India’s banking industry.

“Today, HSBC serves the Indian banking needs of its global and domestic client base with 26 branches across 14 cities. The bank’s expansion in GIFT City continues that growth story, connecting institutional clients with opportunities in India’s burgeoning capital markets for years to come,” said Siddharth Sharma, Head of Institutional Client Group, HSBC India.