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HSBC & EY India Launch Gift City Compendium to Propel Global Finance Hub

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  //business-finance.news-articles.net/content/202 .. ity-compendium-to-propel-global-finance-hub.html
  Published in Business and Finance on Thursday, December 4th 2025 at 5:57 GMT by The Hans India

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HSBC & EY India Release Comprehensive Gift City Compendium – A New Era of Global Integration and Market Maturity

In a landmark announcement that has sent ripples through the Indian financial‑services landscape, HSBC and EY India unveiled a joint “Gift City Compendium” that positions Gujarat International Finance Tec‑City (Gift City) as the next logical step in India’s quest for deeper integration with the global financial ecosystem. The two‑partner initiative, rolled out on 17 November 2023, details the full spectrum of opportunities, regulatory incentives, and operational frameworks that will guide investors, corporates, and service providers through the evolving phases of the city’s development.

1. What is Gift City?

Gift City, located on the banks of the Sabarmati River in Ahmedabad, is a purpose‑built financial free‑trade zone (FFTZ) that combines advanced infrastructure with a hybrid regulatory environment. Designed to bring Indian and international financial services under one roof, the city hosts an array of services—banking, capital markets, insurance, asset‑management, and fintech—within a single jurisdiction that offers 100 % foreign‑direct‑investment (FDI) liberalisation, no import‑export duties on capital equipment, and a range of tax incentives.

The city’s strategic focus is on creating a fully‑functional “financial hub” that can compete with existing centres such as the City of London, Singapore, and Hong Kong. By the time the compendium was released, Gift City had already seen the launch of its flagship projects: the 1 million‑square‑foot “Gift City Financial Services Zone,” the “Financial Services Hub” with state‑of‑the‑art data‑centres, and an array of banking and insurance institutions that have chosen the city as their Indian headquarters.

2. The Compendium’s Core Objectives

The HSBC‑EY compendium is built around three key pillars:

At its heart, the compendium is a “how‑to” playbook that invites stakeholders to understand not only the legal and tax advantages but also the “soft” benefits: proximity to international markets, access to a skilled workforce, and a well‑designed ecosystem of co‑located services.

3. Key Highlights of the Release

a. 100 % FDI and No Import/Export Duty on Capital Goods

The city continues to uphold the “100 % FDI” policy across all sectors, removing a major barrier for foreign entrants. Import‑export duties on capital equipment—critical for data‑centres and banking hardware—are eliminated, further cutting costs for setup.

b. Integrated Regulatory Sandbox

Gift City operates a “Regulatory Sandbox” that allows fintechs and insurers to pilot new products under a lighter regulatory regime. This sandbox provides a safe environment for experimentation while maintaining stringent oversight.

c. Dual Taxation Framework

A unique feature of Gift City is its dual‑taxation model. While Indian corporate tax remains at the normal rate (currently 22 % for domestic companies), foreign‑owned entities can benefit from a 15 % tax rate on their “gift‑city‑derived” income. This incentive is aimed at attracting global capital.

d. “Financial Services Hub” – A One‑Stop‑Shop

The “Financial Services Hub” (FSH) is a purpose‑built complex that houses banking, capital‑market, insurance, and wealth‑management offices under one roof. The compendium outlines the benefits of sharing infrastructure—data‑centres, legal services, and compliance support—to drive economies of scale.

e. Future‑Proof Infrastructure

The compendium also discusses the city’s roadmap for a “digital‑first” approach: a state‑of‑the‑art fibre‑optic backbone, 5G connectivity, and a dedicated “financial‑services” cloud‑platform that will support the scaling of digital finance, algorithmic trading, and blockchain‑based solutions.

4. Executive Insights

The joint press release features several quotes that underline the strategic significance of the initiative:

• “Gift City is a testament to India’s ambition to become a global financial services hub,” said Sanjay Jain, Managing Director of HSBC India. “Our collaboration with EY India helps us decode the city’s complexities and streamline the way businesses can thrive in this dynamic environment.”

• “EY India is committed to facilitating a seamless transition for global and Indian firms to Gift City,” added Aravind Rajendran, Global Head of Corporate Strategy, EY India. “This compendium is a practical toolkit for investors who want to tap into India’s vibrant capital markets while leveraging international best practices.”

These statements underline the article’s emphasis on the city as a “bridge” between India and the rest of the world, offering a hybrid regulatory model that meets both domestic and global expectations.

5. How the Compendium Benefits Different Stakeholders

In addition, the compendium touches on the importance of talent mobility. The city’s proximity to major universities, coupled with the “international tax regime,” makes it a magnet for skilled professionals from around the globe.

6. Additional Context – Follow‑up Links and Resources

The article on The Hans India contains a wealth of hyperlinks that provide further detail:

• HSBC India Official Blog – Features a detailed walkthrough of the Gift City infrastructure and a live map of the financial‑services zone.
• EY India Press Release – Offers a deeper dive into the partnership structure and the methodology used to develop the compendium.
• Gift City’s Regulatory Framework – Links to SEBI, RBI, and IRDA guidelines that are referenced in the compendium.
• Investor Case Study – A PDF case study that chronicles how a mid‑size fintech leveraged Gift City to scale operations across India in 12 months.

These additional resources collectively paint a picture of a city that is not just an infrastructure project but a fully‑functional financial ecosystem designed for global play.

7. The Road Ahead – What the Compendium Predicts

The release is not merely a snapshot of current offerings; it’s a roadmap that anticipates the next phase of integration. Key future initiatives highlighted include:

• Phase‑II Development – Expansion of the FSH, additional data‑center capacity, and a dedicated “FinTech Innovation Hub.”
• Enhanced Cross‑Border Trade – Initiatives to enable real‑time cross‑border payments and foreign‑exchange trading within the city.
• Smart‑City Integration – Collaboration with the Ahmedabad municipal government to develop an integrated “smart‑city” platform for transport, utilities, and security.
• Green‑Finance Initiatives – Plans to host a green‑finance corridor that will allow ESG‑compliant funds to flow into Indian markets seamlessly.

8. Takeaway

The HSBC‑EY India Gift City compendium is a timely, authoritative resource that offers stakeholders a clear map of how to harness the city’s robust regulatory framework, tax incentives, and state‑of‑the‑art infrastructure. Whether you’re a multinational bank, a domestic fintech, an insurer, or a capital‑market participant, the compendium demystifies the process of setting up in a city that is engineered to operate at the intersection of Indian dynamism and global best practice.

With India’s economy now standing at a juncture where domestic growth and global integration must go hand‑in‑hand, Gift City, as showcased by the compendium, stands poised to become a flagship model—demonstrating how a well‑structured financial free‑trade zone can accelerate market maturity, attract foreign capital, and ultimately, position India as a credible competitor on the world’s financial stage.