GIFT City is the Preferred Destination for Indian Asset Managers, Find Out Why
More Indian companies that manage money for others are moving their businesses to a place called GIFT City. Over the last six months, eight out of the top 10 Indian money managers have either moved their businesses to GIFT City or are in the process of doing so.
GIFT City is a special place in Gujarat, India. The government wants it to be a big financial hub. It gives companies good reasons to come there, like not having to pay some taxes.
Swarup Mohanty, who is the boss of a company called Mirae Asset Investment Managers, says they moved some of their money to GIFT City because it’s a good place to do business and it’s close to Indian markets.
Many companies are moving to GIFT City because it gives them tax breaks for ten years. They also don’t have to pay taxes when they move money from other countries to GIFT City. This makes it attractive for companies that manage money for others.
Another reason why companies like GIFT City is because it’s cheaper to run a business there compared to other places like Mauritius and Singapore. This is because the cost of living, rent, and salaries for workers are lower in GIFT City.
A company called DSP Mutual Fund, which handles a lot of money in India and other countries, is also moving to GIFT City. They want to take advantage of the benefits offered there.
Aditya Birla Sun Life AMC, which is one of India’s biggest money managers, is also moving to GIFT City. They are starting a special fund there to invest in companies that care about the environment and society.
GIFT City is becoming more popular among money managers. Over the last three years, more than 80 money managers have set up shop there. They have promised to invest billions of dollars in India.
GIFT City is attractive because it has good rules, tax breaks, and is in a good location. It helps companies and investors get into India’s financial markets easily. As more companies move there, GIFT City is becoming an important place for finance in India.
You might also read: Is GIFT City a Good Investment? Benefits of Investing in GIFT City
