GIFT IFSC: A booming hub for global fund managers
Analysing the FDI Flow
India's thriving economy has also attracted $46 billion in FDI during FY2023, registering a remarkable growth of 89% since FY2014. This warrants scrutiny of the jurisdictions contributing to this inflow.
Notably, Singapore emerged as the leading source of FDI to India, contributing 37% ($17.2 billion) of the basket. The small island nation of Mauritius had a 13.32% share followed by the US at 13.13%.
Remarkably, Mauritius outperformed several developed economies in its contribution to India's FDI. Smaller economies like Singapore and Mauritius played a vital role in bolstering India's FDI inflows, owing to their world-class International Financial Services Centres (IFSCs) that attract offshore fund managers seeking cost-effective bases.
GIFT City: India's Innovative Offshore Base
To foster an offshore location for funds within its borders, India's forward-looking government established the country's first IFSC in Gujarat International Finance-Tec (GIFT) City.
Nestled between Ahmedabad and Gandhinagar, GIFT City boasts numerous distinctions, including being India's first functional smart city with cutting-edge infrastructural facilities like District Cooling System (DCS), Automated Waste Collection System (AWCS), and Underground Utility Tunnel. The unified regulator provides ease of compliance and enhanced convenience for global operations.
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