There’s a burning question that doesn’t get asked enough in business schools: why do so many Indian startups quietly move their headquarters to Singapore or abroad?
It’s not because the founders stop believing in India. It’s because the system makes it expensive to stay.
This is the uncomfortable truth that ThinkSchool’s video on GIFT City puts on the table and it’s the kind of conversation that every MBA student should be having, because it sits right at the intersection of taxation, capital markets, startup policy, and global competitiveness. Four things you’re studying right now, playing out in real life, in a city being built from scratch in Gujarat.
This will help higher-ed students looking to move into Gujarat, professionals who are considering Gujarat and Ahmedabad as their work destination and families who want to forecast the potential of Gujarat give a clear idea of why GIFT city Gujarat is a gamechanger for India.
The Problem Nobody Talks About Loudly
Let’s start with taxes. India’s average corporate tax rate is around 25%. Dubai’s is 0%. Singapore’s is 17%. On paper, that gap doesn’t sound catastrophic. But when you’re a startup making ₹100 crore in profit, that difference runs into tens of crores every single year.
So, founders found a workaround. They’d set up a holding company in Singapore, transfer their intellectual property there, and then have their Indian entity pay royalties back to the Singapore parent. Suddenly, the taxable profit in India drops dramatically. The tax burden shifts to Singapore where the rate is lower. Net result — the company saves money, but India loses it.
This is called startup flipping, and it’s not illegal. It’s just rational. And that’s what makes it a policy problem rather than a moral one.
Then there’s the legal system. If you’re a tech company and someone steals your IP, you want the matter resolved fast because in technology, six months of delay can make a product irrelevant. In Delaware, USA, a corporate dispute can be resolved in three to eighteen months. In India, the same case can take four to six years. With over 40 million cases pending across our courts, corporate IP disputes sit in a queue alongside everything else. So, companies that can afford to register outside India.
And then there’s international banking. An Indian food chain wanting to expand to New York needs a dollar loan. American banks don’t know them, don’t trust them, and won’t lend easily. Indian banks that tried solving this by opening foreign branches found it prohibitively expensive and the jobs and tax revenue those branches generated stayed abroad anyway.
Four problems. Taxes. Legal speed. Overseas banking. Access to global capital markets. They seem unrelated until you realise they all point to the same root cause: India didn’t have a financial infrastructure that could compete internationally. Until now.
What GIFT City Gujarat Actually Is
GIFT City — Gujarat International Finance Tec-City is India’s first International Financial Services Centre (IFSC). Located in Gandhinagar, it operates as a legally offshore zone within Indian borders. Think of it as India creating its own Singapore, on Indian soil, under Indian oversight.
The implications of that are significant.
A company setting up in GIFT City’s IFSC zone is treated as a foreign entity under Indian forex laws which means it gets access to a completely different regulatory environment. A 10-year tax holiday out of 15 years. No GST and no stamp duty. Single window clearance instead of running between departments. For a student who’s sat through even one session on regulatory compliance, you’ll immediately appreciate what single window means in practice.
On banking, Indian banks can now set up International Banking Units inside GIFT City itself, instead of expensive foreign branches. These units can lend in dollars, manage cross-border transactions, and support Indian businesses going global, all while the revenue, jobs, and taxes stay within India. It sounds like a small structural change. The economic impact is anything but.
On capital markets, GIFT City now has its own international exchange. Indian investors can buy Apple or Tesla shares through a broker in Gandhinagar. Foreign investors can trade Indian stocks on the same exchange. The depository receipts that used to be traded in New York can now be traded right here — with Indian regulatory protection instead of having to depend on a foreign broker who, if things go wrong, Indian law cannot touch.
And on legal disputes, GIFT City has tied up with the Singapore International Arbitration Centre. Corporate disputes can now be resolved quickly, by specialists, without joining the 40-million-case queue.
Why This Matters for You Specifically
The thing about studying business and management in 2026 is that the India you envisioned is not the same anymore. India has changed its trajectory and heading towards a better economy. The boundaries between domestic and international finance are blurring. The startup you join after campus, or the one you build three years later, will face decisions that GIFT City directly affects. This is what we train students for at Narayana Business School.
Do you incorporate in India or flip to Singapore for better VC terms? Do you list domestically or raise from American markets? Where do you park your treasury if you’re running a fund? These aren’t hypothetical case study questions anymore. They’re real decisions, and GIFT City changes the calculus on all of them.
There’s also a broader macro lens worth developing. India’s ambition is to be a $5 trillion economy. That doesn’t happen through manufacturing alone. It needs capital, global capital, flowing in and being deployed efficiently.
GIFT City Gujarat is the infrastructure layer that makes that possible. Understanding it isn’t just general awareness; it’s financial literacy for the world you’re about to enter.
The Honest Caveat
GIFT City is not finished. Gandhinagar is not Dubai yet, and pretending otherwise would be dishonest. But the foundation is real.
And 11 years later, here is what that vision looks like in numbers:
- 1,150+ entities registered with IFSCA
- Banking sector at $106 billion
- Capital markets ecosystem at $80 billion
- 37 banks, 65 insurance entities, 35 aircraft leasing firms
- 20,000+ jobs created today, expected to cross 1,00,000 by 2030
- Global firms including HSBC, IBM, Oracle and Google operating here
And the city has just 1 regulator, IFSCA, which handles everything from banking, markets and to insurance. Not just that, global universities including Deakin University, Coventry University and Queen’s University are entering India through GIFT City.
And the world has noticed. GIFT City is now ranked 1st globally in Reputational Advantage in the Global Financial Impact Centres Index and 5th among the world’s top emerging financial centres. For decades, India created wealth that got processed somewhere else.



