Strategy
In January 2026, when the India-EU Free Trade Agreement (FTA) was announced, the world as a whole had reached a conclusive takeoff point in the history of world investment, with the agreement described as the Mother of All Deals.
This agreement will be a significant boost to the manufacturing and services industry in India since it is almost one-third of the world trade and an impressive market of 27 trillion dollars.
Any global founder or institutional investor is no longer asking whether he or she should invest or not, but how to get it right. It is an educational manual or checklist on how to go about the Foreign Direct Investment (FDI) via the Gift Cities IFSCA.
1. General Information: The "Mother of All Deals" & Foreign Direct Investment.
The checklist cannot be understood without having an idea of the magnitude of the existing opportunity. The India EU FTA can be described as a strategic roadmap of the next ten years of trade that will greatly improve bilateral trade and investment relations.
| Feature | Details & Impact |
|---|---|
| Agreement | India–EU Free Trade Agreement (FTA) |
| Market Size | $27 Trillion combined economic bloc |
| Global Trade Share | ~33% of the world’s total global trade value |
| FDI Destination |
GIFT City, Gandhinagar, Gujarat India’s international financial engine under IFSC framework |
| Key Regulator | IFSCA – International Financial Services Centres Authority |
| Expert View |
“The EU–India FTA represents a major shift — accelerating India’s transition
from an assembly destination to moving up the global value chain.” — Dr. Nipun Sharma, CEO, TeamLease |
2. Strategic Comparison: Why GIFT City Out of Global Competitors?
The IFSC is a Gift City Consultant will inform you that it is a strategic move in the high-stakes game of global capital. It presents the regulatory freedom of an offshore hub and growth opportunities of mainland India.
| Comparison Factor | GIFT City IFSC (India) | Singapore | Dubai (UAE) |
|---|---|---|---|
| Tax Status | 100% Tax Holiday (10 / 15 Years) | 17% Flat Corporate Tax | 9% Corporate Tax |
| Currency | Multi-Currency (USD, EUR, GBP) | Multi-Currency | Multi-Currency |
| Market Access | $27 Trillion India–EU FTA Gateway | Southeast Asia Gateway | MENA Gateway |
| Operational Cost |
Lowest Competitive talent + real estate advantage | Highest | High |
| Regulatory Body | Unified Regulator – IFSCA | MAS | DFSA |
3. Ultimate FDI Checklist of GIFT City
The Gift IFSCA is a maze that has to be navigated. Be it a European company or an Indian entrepreneur, when a Gift City Advisor is used, you will not get stuck in the compliance-related pitfalls.
Phase 1: Pre-Investment Diligence
✅ Check Entry Route: Check whether your sector operates the Automatic Route (no prior permission) or the Government Route.
✅ Press Note 3 Compliance: It is necessary to ensure that the investor does not belong to a country that has a common border with India.
✅ Valuation Report: In the case of unlisted companies, a certificate from a Merchant Banker or a CA registered by SEBI. The issue of shares cannot be lower than Fair Value.
Phase 2: Gujarat Incorporation of Entities
✅ Reserve Name: This should have IFSC in the legal name.
✅ Office Space: Get a unit in the GIFT SEZ and receive a Provisional Letter of Allotment (PLOA).
✅ MCA Registration: Applicant, your Certificate of Incorporation, PAN, and TAN.
Phase 3: IFSCA & SEZ Licensing
✅ SEZ Unit Approval: Handover Form F to the Development Commissioner.
✅ IFSCA Registration: Submit the application through the single window IT System (SWIT) to obtain final regulatory approval.
✅ Capital Inflow: Accept monies in your bank through the SWIFT and collect the Foreign Inward Remittance Certificate (FIRC).
Phase 4: Post-Investment Compliance
✅ Allot Shares: This has to be done within 60 days of obtaining funds.
✅ Form FC-GPR: Submit the same on the FIRMS portal within 30 days of allotment to inform the RBI.
✅ FLA Return: Submit your Foreign Liabilities and Assets annual return by July 15 th of every year.
Check it out!
Learn more about International Financial Service Centre (IFSC) Consulting and how GIFT City structures can unlock global investment efficiency.
IFSCA-C →4. Expert Insights: Why Now?
The Mother of All Deals is not about cargo at all, it is the transportation of people and ideas.
“The India–EU FTA represents a significant opportunity… it can accelerate India’s shift from being largely an assembly destination to moving up the value chain.”
To anyone wishing to venture into business in India, a Gift City Consultant is your friend in turning all these complicated schedules of trade into whirrying factories and bustling office suites.
5. What people are asking as per the Trend
Is the India EU deal truly the Mother of All Deals?
Absolutely. It connects the development of India with the EU market worth of 22.5 trillion in the free trade zone of 2 billion people the largest ever to be concluded by both parties.
What is the reason I should have a Gift City Advisor?
Although the regulations are less demanding than the mainland, the Gift IFSCA remains a very strict place. An advisor does the SWIT registration, FEMA compliance and taxes structuring to ensure that you do not receive penalties.
What is the “First-Mover Advantage” in GIFT City?
Since local powerhouses (HSBC, J.P. Morgan) are coming in, first movers obtain the most desirable infrastructure and talent when the market is under 100,000 workforce size.
Is it possible to invest in Euros or only USD?
The IFSC is currency-neutral. Any freely convertible currency, such as Euros, could be held, traded, and invested in and so the best place to land the European Foreign Direct Investment.
What will the duration of the entire process be?
The majority of the entities can now convert a paper idea to a fully functioning unit in 4 to 8 months with a specialized Gift City Consultant.
Next Steps and Resources
- State IFSCA: ifsca.gov.in
- GIFT City Official Business Guide: Doing Business in GIFT City
- Invest India FDI Portal: FDI Policy & Sectoral Caps
- Countdown: Mother of All Deals has started in GIFT City IFSCA
- Davos Update: Davos Confirms GIFT City as a Global Hub
Roadmap
The roadmap is the “Mother of All Deals”, and Gift City Gandhinagar is the vehicle.
Get in touch with GiftCityAdvisor. We will handle the regulatory heavy lifting, and you can focus on becoming the leader in your industry, emerging from the leading global financial centre in India.