IFSCA Proposes Pension Fund Regulations to Position GIFT-IFSC as Global Pension Hub
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure | SDG 17: Partnerships for the Goals
Institutions: Ministry of Finance | Ministry of External Affairs
The International Financial Services Centres Authority (IFSCA) has released a Consultation Paper detailing its proposed IFSCA (Pension Fund) Regulations, 2025. The primary goal is to launch a completely new retirement savings structure within India’s global financial gateway, the GIFT-IFSC.
This strategic move is designed to establish a robust pension ecosystem and position the IFSC as a global hub for international pension funds. The target audience is explicitly the global Indian diaspora—estimated at 15 million NRIs (Non-Resident Indians) and 19 million PIOs (Persons of Indian Origin)—along with foreign expatriates.
Key Design Features: Maximizing Subscriber Choice
The proposed regulations move away from rigid, domestic retirement rules and emphasize flexibility and customization to compete globally:
Voluntary and Flexible Contributions: Subscribers will have complete freedom (voluntary participation) to choose when and how much money they contribute to their pension scheme.
Diverse Options: The framework will offer a wide variety of investment choices, multiple scheme structures, and flexible options for withdrawal/exit.
Enhanced Value Proposition: A major innovation is the ability to integrate the pension plan directly with medical policies or health insurance, significantly boosting the product’s value to the user.
Strategic Policy Significance and Next Steps
This regulatory proposal is critical as it marks a definitive step towards diversifying the IFSC’s product offerings and explicitly targeting the vast global Indian diaspora. By creating a forward-looking forex pension framework, IFSCA is strengthening the IFSC’s role as India’s gateway for global financial services. The proposal is aimed at maximizing competitive appeal against established international pension jurisdictions.
The regulatory authority is currently in the public consultation phase. Policymakers and market participants need to submit constructive comments and suggestions to IFSCA on the proposed regulations by the deadline of November 25, 2025.
What is GIFT-IFSC? → GIFT-IFSC is India’s first International Financial Services Centre located in Gujarat’s GIFT City. It serves as India’s global financial gateway, enabling activities like international banking, insurance, asset management, fintech, capital markets, aircraft and ship leasing, and other cross-border financial services that are normally done in offshore hubs like Singapore or Dubai.
Created under a unique framework, it operates in foreign currency markets and primarily serves non-residents and global entities. A unified regulator — the International Financial Services Centres Authority (IFSCA) — oversees all financial activity within the zone, combining roles otherwise split across RBI, SEBI, IRDAI, and PFRDA. GIFT-IFSC functions within a Special Economic Zone, offering tax incentives including 100% income-tax exemption for 10 years for eligible entities, positioning it as a competitive global finance hub.
Follow the full news here: IFSCA Releases Consultation Paper on Proposed Pension Fund Regulations