Global allocators are increasingly sold on the India growth story. Rapid economic expansion, a fast-moving digital economy, strong demographic tailwinds, and a government actively courting foreign capital.
The investment case is not in question. What continues to hold managers back is the how.
In a recent webinar, four practitioners who operate at the coalface of cross-border India strategies came together to answer exactly that question. The conversation was candid, technically detailed, and full of insights that do not typically make it into public forums. If you manage or advise on India-linked funds, this is one to watch.
The structure gaining real traction
The pairing of a Cayman master fund with a Gujarat International Finance Tec-City (“GIFT City”) feeder is moving from theoretical to operational. Cayman provides the familiarity and governance confidence that global allocators still require, while GIFT City offers a tax efficiency framework that, in some cases, outperforms India's most favourable bilateral tax treaties.
The numbers are striking. For a Category 3 GIFT City fund trading futures, options or derivatives in Indian markets, capital gains are entirely exempt, and that exemption flows through the chain. When GIFT City distributes to Cayman and onwards, there is no additional layer of Indian tax. For Category 2 funds with sovereign wealth or pension fund investors, India looks through to the tax status of the ultimate investor, which in many cases means no tax at all.
Investors in a properly structured GIFT City fund do not need to file a tax return in India, obtain an Indian tax identification number, or manage the treaty challenge risk that has historically shadowed Singapore and Mauritius structures. The benefits are embedded in domestic law, not dependent on treaty interpretation.
What allocators are actually saying
For Lana Callahan, our Global Head of Institutional Allocators, India frequently comes up in conversations with LPs, with governance, onboarding timelines, and cost transparency among the key factors determining whether capital moves. Multi-jurisdiction structures are now among the top three topics she is asked about, with allocators increasingly seeking to speak with local market participants before committing.
Familiarity still matters. But curiosity about GIFT City is growing fast.
A regulator that moves like a startup
GIFT City's IFSCA regulator describes itself as a "startup regulator", and it shows. In recent months alone, the regulator has reduced Fund Management Entity (“FME”) fees, extended the tax holiday for fund managers from 10 to 20 years, relaxed qualification requirements for fund management personnel, and introduced a platform model that allows managers to leverage our existing GIFT City infrastructure without establishing their own physical presence. A fund can go live and begin deploying capital within 60 to 90 days.
Total non-retail scheme commitments in GIFT City grew from USD 26 billion to USD 32 billion in a single year. Total funds raised moved from USD 12 billion to USD 17 billion. For a jurisdiction at this stage of maturity, that trajectory is significant.
The full picture, on demand
The webinar also covers Cayman's role as a USD 20 trillion global capital funnel, the practical steps involved in operationalising a GIFT City vehicle, how outbound structures benefit from Cayman interposition, and how a single fund administrator across jurisdictions eliminates the data fragmentation and oversight burden that comes with managing multiple service providers.
This is not a high-level overview. It is a working session between practitioners, and the detail shows.
Watch the full webinar on demand. Complete the form below to access.
