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We examined in our previous post “Why India’s Growth Engine is Stronger Than Global Trade Shifts“, and have examined in this post, why India can be considered as a stronger engine of growth than global trade shifts, due to the presence of Foreign Direct Investment and consistent policy forming a financial citadel.
But with the decline in direct tariffs, a new threat is brought out Non-Tariff Barriers (NTBs). Although the 18 percent tariff on US bound export is a huge victory, a sizeable number of Foreign investors and individuals is now creating an invisible wall meant to shield local industries in the name of regulation.
In order to start a business in India that is going to target global markets, you cannot afford to just be content with the mere customs duties.
We are your loyal Gift City Advisor, and we would be happy to un-teach you the book of protectionism and demonstrate to you how you can continue to have the status of Operational Immunity in the IFSCA Gift City.
I. High Hurdles to Quality Trap of the SPS/TBT
Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) are the most widespread Invisible Walls nowadays. These restrictions can be increased during the night so that an Indian food, pharma, and engineering export cannot be made.
These obstacles are costlier than taxes to those wishing to start a business in India. Compliance testing and certification costs usually consume the margins realized by reduced tariffs to foreign investors and individuals.
Nevertheless, an IFSCA Consultant is able to assist you in putting your operations together to comply with these high standards by centralizing global compliance in a special unit at the IFSC.
Check it out!
Learn more about International Financial Service Centre (IFSC) Consulting and how GIFT City structures can unlock global investment efficiency.
IFSCA-C →II. The Retaliatory Tactics of China: The Supply Chain Choke Point
Trade and geopolitics can no longer be separated. One of the key Invisible Walls is that India remains dependent on some of its neighbors for Active Pharmaceutical Ingredients (APIs) and Rare Earth elements.
This dependence is one of the geopolitical choke points commonly employed to decelerate the Indian manufacturing boom.
We observe that more companies are also seeking the IFSCA Gift City as a source of foreign supply chain funding as a top Gift City Consultant. This enables the businesses to spread their sourcing out of high-risk areas.
Through the use of an IFSCA Consultant, you will be able to make certain that your capital is operating within a dollar-based environment and that you will have the liberty to outsmart these supply chain “disturbances.”
III. The Paradox of Subsidies: The Way through the Middle
Modern trade has a blaring Subsidy Paradox. Western countries tend to criticize India’s domestic support, but at the same time, they are flooding the world markets with their subsidized products.
This puts an unequal level of competition in the Foreign Direct Investment in the Indian agricultural and manufacturing sectors.
To match this, a Gift City Advisor assists you in taking advantage of a 20-year tax holiday and infrastructure that is of good quality in the IFSC. This subsidy enables your company to recover the competitiveness that other global subsidies could take away.
You do not merely enter a market when you start a business in India through the IFSC, but rather, a secure economic environment that was created with the aim of competing worldwide.
IV. Operational Immunity: The reason your business should have a GCC
The final answer to these “Invisible Walls” is to have a Global Capability Centre (GCC). With a GCC, you can consolidate your R&D, world-wide quality control, and regulatory matters in one location, which is tax-neutral.
- GIFT City is attractive to foreign investors and individuals due to 100 percent tax neutrality for 10 years (up to 20years under Budget 2026).
- We are your Gift City Consultant, and we assist you in developing an entity that is able to comply with the international TBT standards without increasing your overheads in operations.
- FDI is safer in the hands of the IFSCA Gift City, where a single regulatory environment and stability of an international financial center exist.
In order to enjoy the real “Operational Immunity” against global protectionism, your business should be diversified in a high-value line that will be safeguarded by the unique legal and tax system of the IFSC.
You can either centralize the world capital using a GIFT City Fund Management Setup, you can capitalize on the growing logistics need with GIFT City Ship Leasing Setup Support, or you can expand your footprint in the aviation sector with GIFT City Aircraft Leasing Advisory services.
In either case, you can do it in a tax-neutral, dollar-denominated environment.
Through these structures, you will be assured that the growth of your business will not be burdened by the invisible walls of the conventional trade of the 20-year tax break to develop a globally competitive enterprise in the core of the IFSCA Gift City.
Conclusion: Find an IFCSA Consultant
The protectionist playbook can be complicated, but it is not unconquerable. With the relocation of your international operations to the IFSCA Gift City, you transform these so called Invisible Walls into the prospects of greater quality and compliance.
Don’t navigate this alone. Gift City Advisor is your partner, no matter whether it is time to plan your structure with a Gift City Advisor or to license with an IFSCA Consultant. We can assist in future-proofing your growth engine.
👉 Gift City Advisor. Contact to Build Your Operational Immunity!