India and Canada are on track to more than double bilateral trade to $50 billion by 2030, Finance Minister Nirmala Sitharaman announced during her recent Toronto visit. Speaking at a fireside chat with Canadian counterpart Francois-Philippe Champagne, Sitharaman emphasized that 'every country is now looking for predictability and trust' and highlighted that the two nations have 'identified market access in several areas' to ensure smooth trade continuity. The revised target represents an increase from the previously announced C$70 billion by 2030, with both economies viewing the proposed trade deal as a 'beacon of stability in an otherwise uncertain world' amid increased global complexity and volatility. As per Business Standard, the two countries are also discussing a free trade agreement aimed at concluding it by the end of 2026, while exploring a financial investment protection agreement to further strengthen bilateral economic cooperation.
Gift City is experiencing significant growth in Indian investor participation, with Global Access Providers (GAPs) rising to 18 by July from just a handful a year ago, according to the International Financial Services Centres Authority (IFSCA). The number of investors using GAPs through India International Exchange (IFSC) Ltd reached 6,044 by March, while the total traded value increased 11% year-on-year to $39 million, as reported in the IFSCA March-quarter bulletin. However, the centre faces challenges in attracting foreign investors and financial firms, with nearly 90% of investors trading through GAPs being Indians. The location's modern infrastructure, strong business focus, international financial activity, and growing interest from companies and investors are driving increased demand for commercial real estate, making GIFT City an attractive option for NRI investors seeking exposure to India's growing financial sector.
The Gujarat International Finance Tec-City (GIFT City) International Financial Services Centre (IFSC) has evolved considerably beyond its original role as an emerging financial zone, now providing a dedicated regulatory framework for international banking, fund management, insurance, capital markets and other financial services under the International Financial Services Centres Authority (IFSCA). The IFSC enjoys a distinctive legal position, being treated as a deemed foreign territory for relevant FEMA and financial-regulatory purposes, allowing financial institutions operating there to undertake certain transactions in foreign currencies within a framework designed specifically for international financial services. Eligible IFSC units can benefit from significant tax incentives, including a tax holiday that has been expanded under the 2026 framework to 20 consecutive years within a 25-year period for qualifying units. From 2026, offshore mutual funds and ETFs can relocate to GIFT IFSC on a tax-neutral basis without triggering capital gains tax merely because of the relocation, strengthening GIFT City's proposition as an Indian base for international financial activity. However, it's important to note that tax rules can depend on who owns the property, how it's used, the location of the unit, and the structure of the investment, so professional advice should always be taken before assuming that GIFT City benefits apply automatically to private property investors.
During her recent Toronto meetings, Sitharaman engaged with major Canadian institutional investors to deepen their engagement with India's growth sectors. She met John Graham, president and CEO of the Canada Pension Plan Investment Board (CPPIB), appreciating the pension fund's continued confidence in India and its long-term commitment, including its investment in NIIF Infra Fund II. The discussions focused on expanding institutional investment across transmission, renewable energy, roads, ports, urban infrastructure, digital infrastructure and data centres, with Sitharaman highlighting India's growing infrastructure monetisation pipeline and efforts to strengthen investor protection, regulatory predictability and transparency. She also met Jo Taylor, president and CEO of Ontario Teachers' Pension Plan (OTPP), exploring ways to expand OTPP's infrastructure investments through partnerships and co-investment, including in transmission, transport, urban infrastructure and renewable energy. Additionally, Sitharaman participated in a high-level business roundtable with chief executives from leading Canadian companies across sectors including clean technology, critical minerals, energy storage, agriculture, food processing, automotive, textiles, green steel, aerospace, space, cybersecurity, biotechnology, artificial intelligence, asset management, higher education and skills development.
Despite limitations, several major international brokers including Interactive Brokers, Alpaca, ViewTrade, ClearStreet, and CLSA have established or are establishing presence in Gift City, while others await license approvals. According to Phillip Ventures IFSC compliance officer Umang Pandya, investors and financial intermediaries with existing relationships across international centres such as Singapore, Dubai and Hong Kong are increasingly evaluating Gift City. However, industry experts expect only gradual diversification rather than wholesale migration from established international financial centres. The introduction of variable capital company (VCC) frameworks and recent approval of the first inbound family investment fund represent encouraging developments for the centre's evolution as a wealth management hub. For NRI investors, commercial property may offer two possible benefits: rental income if the office is leased to a business, and possible long-term growth in property value as the area develops, though neither rental income nor price growth is guaranteed.
