5 min readApr 15, 2026 06:21 AM IST
First published on: Apr 15, 2026 at 06:21 AM IST
Tensions in West Asia have cast a shadow over global markets, raising concerns around inflationary pressures and energy security. As investors seek stable, high-growth alternative locations, India has an opportunity to position itself as the definitive gateway for global capital.
Asia accounts for 55 per cent of global GDP and drives 60 per cent of global growth. The capital flows that follow this gravitational shift need a credible, safe, and well-regulated gateway. For this discussion, let us call this capital Global Gateway Capital, or GGC — an international capital that is managed from a regional hub to invest across Asia and the world. To put this in perspective, Singapore is home to $6 trillion of capital —a large part of it uses Singapore as a hub and gateway for investments in Asian countries. Much as FDI and FII became defined policy categories, GGC deserves formal recognition. India should build policy and infrastructure to attract such capital.
Post-Covid, global capital started looking at Dubai as Asia’s alternative financial gateway beyond Singapore and Hong Kong. It is estimated that $2 trillion of family and fund wealth is managed from the city. The geopolitical scenario puts the region’s safe-haven status at risk. While Singapore and Hong Kong will attract some of this reallocation, three structural advantages set India apart from other contenders for GGC.
First, institutional credibility: India is the largest democracy, with independent regulators and progressive reforms. Second, economic scale and diversity: At a projected GDP growth of more than 6 per cent, India is the world’s fastest-growing major economy. An economy this large and diverse offers GGC depth of opportunity. Third, demographics: India will have 1.04 billion working-age persons by 2030 and will contribute 24.3 per cent of the world’s incremental workforce over the next decade. This is the talent base a global financial hub looks for.
India has a strong foundation to become the base for investing in Asia. GIFT City’s IFSC hosts over 1,034 registered entities with managed assets exceeding $100 billion. Over 310 Alternative Investment Funds are registered with total commitments crossing $26 billion. Under FEMA, GIFT entities are treated as offshore, giving them full capital account convertibility and free repatriation. A unified regulator, IFSCA, consolidates the powers of RBI, SEBI, IRDAI, and PFRDA. This gives India a unique positioning as a hub for capital coming to Asia. However, GIFT today is focused on capital flowing in and out of India. For it to attract GGC, India will need to make long-term decisions.
The core issue with GIFT is the absence of permanent, legislative certainty and a myriad of regulations. Tax holidays are currently extended in rolling five-year tranches, the latest running to 2030. Rolling extensions, however well intentioned, signal policy impermanence. Similarly, important exemptions on overseas income earned by funds registered at GIFT arrive via circulars and clarifications rather than statute. The physical infrastructure and amenities that attract international talent are still maturing.
The core principle is simple: Do not tax the gateway. Benefits to India will come from the second-order effects — the jobs, the investments, the technology, the capital that flows through GIFT into Asia and the world. Global financial gateways built their economies on the same principle.
The policy agenda centres on one overarching reform: A single comprehensive Act of Parliament that formally defines Global Gateway Capital as a distinct investment category (alongside FDI and FII). The Act should cover all key issues — permanently legislating GIFT’s tax and regulatory framework, and superseding all other laws on tax, FEMA, and visa matters for GGC firms. It should provide a clear long-term tax exemption for capital that comes to GIFT City. A global fund manager who can point to an Act of Parliament — not a circular — as the legal basis for their tax treatment in India is part of a very different conversation. The Act should also enable a hybrid operating model — allowing GGC firms registered in GIFT to deploy their teams across major cities while GIFT’s infrastructure matures. It should establish long-term visas for international financial professionals tied to GGC commitments, granting them tax exemption on their global income and on income earned through GGC funds. The Act should mandate regulatory bodies and ministries — RBI, SEBI, GST Council, MHA and others — to issue aligned standing clarifications within a fixed time frame
India has the fundamentals, the vehicle, and the moment to attract a large, transformative pool of GGC. What it needs is the political will to act boldly and at speed in this rare window of opportunity.
The author is a senior investment professional
