Global Capability Centres in GIFT IFSC – India’s Next Big Financial Hub

Introduction: GCCs as Engines of Global Growth

Global Capability Centres (GCCs) have transformed from being low-cost offshore back-office units to becoming strategic hubs for innovation, digital transformation, and enterprise resilience. For multinational corporations, they now serve as centres of excellence that deliver high-value functions across technology, finance, analytics, and R&D.

India has firmly established itself as the global leader in the GCC ecosystem, currently hosting over 1,700 GCCs with projections to cross 2,500 in the next few years. This growth is expected to employ more than 3 million professionals by 2030.

While Bengaluru, Hyderabad, and Pune dominate the GCC landscape, a new frontier is emerging: Gujarat International Finance Tec-City (GIFT IFSC). Positioned as India’s international gateway for financial services, GIFT IFSC is now attracting Global Capability Centres in the BFSI sector, supported by world-class infrastructure, progressive regulation, and attractive incentives.

Why GCCs in GIFT IFSC?

GIFT City is India’s first and only International Financial Services Centre (IFSC). Unlike conventional IT hubs, it is purpose-built to serve international businesses, offering both domestic talent depth and global operating flexibility.

Key Advantages for GCCs:

• Regulatory Clarity: The International Financial Services Centres Authority (IFSCA) provides a single-window regulator covering all financial services activities, eliminating overlaps and delays.
• Global Tax Incentives: GCCs in IFSC enjoy a ten-year tax holiday on business income, exemptions from key transaction taxes, and favorable capital gains treatment.
• Foreign Currency Operations: Centres can operate entirely in freely convertible foreign currencies, creating seamless integration with global group entities. INR is used only for limited administrative expenses.
• World-Class Infrastructure: Smart-city design with district cooling, automated waste systems, reliable power, and grade-A office spaces create a true international environment.
• Ease of Doing Business: Simplified approvals, global reporting norms, and reduced compliance burden compared to domestic operations.
• Talent & Connectivity: Access to Gujarat’s growing technology and finance talent pool, supported by strong academic institutions and infrastructure.
• Additional Benefits under Gujarat GCC Policy: Companies setting up in GIFT IFSC also enjoy incentives under the state’s GCC Policy 2025–30, including CAPEX/OPEX subsidies, employment-linked incentives, and skill development support.

Together, these factors make GIFT IFSC uniquely positioned as a financial services GCC hub within India’s larger GCC story.

Regulatory Framework: IFSCA GIC Regulations, 2020

IFSCA introduced the Global In-House Centre (GIC) Regulations, 2020 to enable recognition and operation of GCCs in IFSC. The framework ensures global-standard governance while providing operational flexibility.

Key Features:

• Definition: A Global In-House Centre is a unit set up in IFSC to provide support services to entities within its financial services group.
• Eligibility: Centres must cater exclusively to their financial services group, with clients based in FATF-compliant jurisdictions.
• Permissible Activities: Services include risk management, analytics, IT support, compliance, actuarial work, research, and financial operations.
• Currency Framework: Full operations in foreign currency; INR permitted only for administrative payments.
• Talent Mobility: Permits relocation of up to 20% supervisory staff from domestic entities with regulatory approval.
• Reporting: Global-standard reporting in USD, ensuring comparability and compliance with international benchmarks.

This regulatory clarity sets GIFT IFSC apart from domestic centres, aligning it with hubs like Singapore, Dublin, and Dubai.

Case Study: Bank of America’s GCC in GIFT IFSC

A defining moment for GIFT City was Bank of America’s decision to establish a Global Capability Centre in IFSC.

• It became the first global bank to launch a GCC in GIFT IFSC.
• The centre began with a workforce of around 500 employees, expanding rapidly to over 2,400 professionals in less than three years.
• The bank has leased nearly 400,000 sq. ft. of office space across multiple floors, making it one of the largest occupiers in GIFT City.
• Operations span risk management, compliance, technology, and analytics — core functions critical to the bank’s global activities.

This investment reflects global confidence in India’s policy clarity and GIFT IFSC’s infrastructure. It also serves as a strong precedent for other BFSI multinationals evaluating India as a GCC location.

GCC Benefits under Gujarat GCC Policy 2025–30

In addition to the IFSC-specific advantages, GCCs in GIFT City benefit from Gujarat’s GCC Policy 2025–30, designed to position the state as a global GCC hub.

Highlights of the Policy:

• CAPEX Incentives: Up to 20% subsidy on infrastructure investment and up to 30% on IT-related capital expenses, capped at ₹200 crore for mega projects.
• OPEX Incentives: Up to 15% reimbursement of operational costs for five years, capped at ₹40 crore annually.
• Employment Incentives: One-time support of up to ₹50,000 for male employees and ₹60,000 for female employees.
• EPF Reimbursement: 100% for female employees and 75% for male employees for five years.
• Electricity Duty Waiver: Full reimbursement for five years.
• Skill Development Support: Reimbursement up to ₹50,000 per individual for globally recognized certifications.
• Patent & Innovation Incentives: Assistance of up to ₹10 lakh per successful patent application.

This policy framework strengthens Gujarat’s attractiveness for both BFSI-focused GCCs in IFSC and IT/ITES GCCs across the state.

Opportunities for BFSI GCCs in GIFT IFSC

The IFSC is uniquely suited for financial sector GCCs, given its regulatory architecture and ecosystem. Key opportunities include:

• Risk & Compliance Centres: Handling global AML, KYC, stress testing, and regulatory analytics.
• Digital & Fintech Collaboration: Leveraging IFSC’s fintech sandbox to test and scale innovative solutions.
• Treasury & Capital Market Support: Managing group treasury operations, asset-liability management, and back-office support for capital markets.
• Insurance & Actuarial Services: Supporting global insurers, reinsurers, and actuarial operations.
• Wealth & Asset Management Services: Providing research, operations, and compliance for funds, private equity, and asset managers.

For BFSI groups, GIFT IFSC offers the right blend of global governance, cost competitiveness, and talent access.

How Nexpective Advisors Helps

At Nexpective Advisors, we guide global enterprises in setting up GCCs in GIFT IFSC through regulatory navigation, tax structuring, and compliance support. With offices in GIFT City and Vadodara, we combine local expertise with international advisory standards to deliver seamless execution.

GCCs in GIFT IFSC – A Strategic Gateway for BFSI Sector Growth

The emergence of GCCs in GIFT IFSC is more than a policy initiative — it is a strategic repositioning of India’s financial sector in the global value chain.

For BFSI enterprises, GIFT IFSC provides a unique trifecta of regulatory clarity, fiscal incentives, and India’s cost-effective talent base. The Bank of America success story validates the model, while Gujarat’s GCC Policy 2025–30 enhances the ecosystem with state-level support.

For global boards, CFOs, and directors assessing offshore hubs, the message is clear: GIFT IFSC is India’s next strategic financial hub — and early movers stand to gain the most.