GIFT City as Reinsurance Hub

• 08 Dec 2025

Source: ET 

India’s plan to turn Gujarat International Finance Tec-City (GIFT City) into a global reinsurance hub,  is advancing with over 10 international insurers already set up and more in line. 

GIFT City 

• About: GIFT City, India’s first International Financial Services Centre (IFSC), on the Sabarmati River in Gandhinagar, is a world-class financial and IT hub.  
  • It was established under the Special Economic Zone (SEZ) Act, 2005, and is structured into two zones i.e., GIFT SEZ for non-resident entities, and Domestic Tariff Area (DTA) for domestic commercial purposes. 
  • Designated as a non-resident zone under the Foreign Exchange Management Act, 1999 (FEMA). 
  • IFSC is a jurisdiction that provides onshore and offshore financial services to non-residents and residents (institutions), in a foreign currency. 
• Objective: To attract global capital and establish India as a leading international financial centre (like Singapore and Dubai). 
• Regulatory Body: Governed by the International Financial Services Centres Authority (IFSCA), a unified regulator established by the IFSCA Act, 2019. 
  • The IFSCA consolidates powers previously held by RBI, SEBI, IRDAI, and PFRDA for operations within the IFSC, ensuring a single-window regulatory system. 
• Functions: Functions as India’s onshore financial free zone, combining a global financial hub (banking, exchanges, reinsurance), a smart tech ecosystem for fintech, and a tax-friendly business enclave to attract international capital and services. 
• Incentives Provided: It offers major incentives, including a 10-year tax holiday, no additional capital injection, and a lighter compliance regime, unlike onshore India.

Read More: GIFT City and Bullion Exchange