High attrition, lower pay weigh on GIFT City’s growth prospects: PwC Survey

A recent study by PwC India finds that while the city has made steady progress in attracting financial and technology firms, it continues to struggle with high attrition, lower pay scales

The Gujarat International Finance Tec-City (GIFT City), located on the banks of the Sabarmati River in Gandhinagar, is yet to overcome workforce and ecosystem challenges that limit its growth into a global financial hub.

62% of executives said they face difficulty in attracting experienced professionals because of relocation concerns. (Representative file photo)

A recent study by PricewaterhouseCoopers (PwC) India finds that while the city has made steady progress in attracting financial and technology firms, it continues to struggle with high attrition, lower pay scales, and limited social infrastructure.

The report, titled Moving the Needle on Gujarat’s GIFT City, was based on a survey of around 200 senior executives, professionals, and students conducted between April and June this year across GIFT City, Ahmedabad, Bengaluru, Pune, and Mumbai. The report assessed GIFT City’s readiness to host global capability centres (GCCs), financial institutions, financial technology firms (FinTechs) and TechFins.

Sixty-three percent of senior executives said they were considering relocating or expanding operations to GIFT City, citing tax incentives, SEZ benefits and a flexible regulatory framework as the main attractions. The remaining respondents were either unsure or not planning such moves, citing operational limits and workforce constraints.

In a separate question, 62% of executives said they face difficulty in attracting experienced professionals because of relocation concerns.

Other responses to that question showed 54% pointing to limited maturity of the ecosystem and 46% citing the absence of an established talent pool. Reported attrition at GCCs in GIFT City ranged between 30% and 40%, compared with 10% to 20% in large metropolitan centres such as Mumbai and Bengaluru.

Established in 2015 between Ahmedabad and Gandhinagar, GIFT City is India’s first operational smart city and home to the country’s only International Financial Services Centre (IFSC). It was conceived as a global base for banking, financial services, FinTech, and technology-driven enterprises.

A decade later, GIFT City has evolved into a thriving financial ecosystem, home to 32 banks, over 150 capital market intermediaries, 47 insurance and reinsurance firms, 32 FinTech and TechFin entities, over 250 alternative investment funds (AIFs) and more than 30 aircraft/ship lessors and bullion market traders.

With world-class infrastructure, seamless connectivity, and attractive tax and regulatory incentives, GIFT City is steadily gaining traction among global businesses and investors, it said.

In March 2025, it ranked 46th on the Global Financial Centres Index (GFCI), a significant leap over previous years. It is also placed fifth among 15 emerging centres expected to grow in importance over the next two years, and topped the reputation index among these centres. In May 2025, GIFT NIFTY recorded a monthly turnover of USD 102.35 billion, underscoring growing global investor confidence, according to the report.

“It is uniquely positioned to connect India to international markets and foster next-generation FinTech and IT innovation. Employment is also on the rise, with plans to expand from 25,000 to 150,000 jobs over the next five years – primarily in FinTech and tech roles. Despite its progress, GIFT City still has considerable ground to cover before it can outpace established global hubs and emerge as a leading international financial centre,” according to the PwC report.

The report says 77% of senior executives believe talent is available in and around GIFT City, but many also flagged gaps in specialised skills such as electronic trading platforms, quant roles, big data, cloud security, blockchain, risk management and treasury functions. Compensation in GIFT City is estimated to be 10% to 15% lower than in Mumbai and Bengaluru, which reduces the incentive for experienced staff to relocate. The report recommended targeted training programmes, stronger industry–academia links and incentives for talent retention.

The report identifies the city’s fiscal incentives and business-friendly regulatory framework as its main advantages. The International Financial Services Centres Authority (IFSCA), set up in 2020 as the unified regulator for financial institutions operating within the IFSC, provides ten-year tax holidays, customs and GST exemptions, and simplified compliance procedures. Sixty-eight percent of senior executives surveyed ranked tax incentives as the top factor influencing their interest in establishing operations in GIFT City, followed by access to SEZ benefits and government support for new businesses.

The Gujarat government has sought to support this push with the Gujarat Global Capability Centre Policy 2025–30, which aims to attract 250 GCC units with investment of ₹10,000 crore and create 50,000 jobs. The policy offers capital and operating subsidies, employee incentive schemes, interest subvention and electricity duty exemptions, and includes employment generation incentives and EPF reimbursement for employers. The policy also seeks stronger links between industry and educational institutions to build a pipeline of specialised skills.

“The Union Budget 2025 reaffirmed the government’s commitment to establishing GIFT IFSC as a premier global financial hub by enhancing tax incentives and regulatory clarity. Key reforms – such as a simplified regime for fund managers and tax exemptions for non-residents – are designed to draw greater global investment. However, current tax benefits are largely confined to the financial sector,” the report said.

The PwC report showed that 49% of senior executives rated GIFT City’s Banking, Financial Services and Insurance (BFSI) potential as very high and another 40% rated it medium. Seventy-eight percent of working professionals and 87% of students said they see GIFT City as a promising destination for placements and career growth. The report notes that GIFT City already hosts multiple banks, exchanges and alternative investment funds and that its infrastructure includes a Tier IV data centre, intelligent building management systems and 22-hour stock exchange operations.

PwC observes that despite these advantages, GIFT City’s ability to compete with established hubs like Mumbai, Bengaluru, Singapore, and Dubai will depend on its ecosystem maturity and quality of life. Respondents identified social and mobility infrastructure as areas requiring urgent attention.

On specific improvements, 81% cited stronger support for work–life balance services, 76% asked for international schools and healthcare facilities, 72% sought more social and recreational options and 71% flagged transport and connectivity. PwC notes that planned links to Ahmedabad and Gandhinagar, an upcoming metro and the Mumbai–Ahmedabad high-speed rail corridor could reduce perceptions of isolation and improve talent mobility.

The report stated that GIFT City’s next phase of growth will depend on aligning regulatory and fiscal incentives with sustained investment in talent and social infrastructure. It calls for policy continuity, focused skill development, and measures to reduce attrition if Gujarat is to position GIFT City as a global base for financial services, FinTech and technology-led capability centres.