GIFT CITY-IFSC and India’s Global Financial Ambitions

In 2015, the Government of India implemented a major financial sector reform by establishing and operationalising India’s maiden International Financial Services Centre (IFSC) in Gujarat International Financial Tec-City (GIFT City), Gujarat.  The vision of the Government is to develop GIFT IFSC as a leading global financial centre with trusted business regulations, a competitive tax structure, and a world-class ease of doing business environment.  

Over the last few years, GIFT IFSC has made remarkable progress in achieving its twin objectives: a) onshoring India-centric international financial services business, and b) serving as a preferred gateway for channelising global capital flows into the country.  

A Regulatory Framework Built for Global Leadership 

The rapid emergence of GIFT IFSC as a preferred international financial centre can be attributed to three foundational pillars. 

First, the IFSC has been designated as a non-resident zone under the Foreign Exchange Management Act (FEMA), which enables entities operating in the IFSC to conduct business operations in any of the 15 notified foreign currencies including USD, GBP, Yen, Euro, etc.  

Second, while India’s domestic financial sector is regulated by four independent regulators, namely the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA); the IFSC has been brought under the regulatory purview of a dedicated and unified financial regulator, the International Financial Services Centres Authority (IFSCA), through an Act of Parliament. In the last five years, IFSCA has notified 30+ Regulations and 15+ Frameworks across the entire spectrum of financial services, including banking, capital markets, fund management, insurance, and specialized segments, such as aircraft and ship leasing.  

Third, the Central Government has provided a competitive tax regime for the IFSC which is at par with leading global financial centres.  

Collectively, these enablers have not only provided a fillip to the zone but have also contributed to ease of doing business and long-term certainty.   

The Growth Momentum 

The IFSC is now well poised to contribute significantly to the vision of Viksit Bharat@2047 as outlined by the Hon’ble Prime Minister. The strong growth momentum is evident from the fact that in the last five years, IFSCA has granted over 1,200 registrations across 30+ business segments including banks, capital market entities, fund management entities, aircraft and ship leasing firms, among others. Several leading global financial institutions have now established a substantive presence in the IFSC to undertake India centric foreign currency business as well as global business operations.  

Core financial services businesses, such as Banking, Fund Management, and Re(insurance), have been growing at a rapid pace with participation of both global and Indian institutions. The Banking sector, which acts as a life-blood for any financial centre, is making significant strides with participation of 37 Banks, including 20 foreign banks. The total banking assets have increased from USD 14 billion in September 2020 to USD 106 billion in December 2025, driven primarily by the growth in External Commercial Borrowings and Trade Finance activities. 

Similarly, on the Fund Management side, GIFT IFSC is seeing great traction for pooling of global capital for making investments into India. Till December 2025, 202 Fund Management Entities (FMEs) have been granted registration under the IFSCA (Fund Management) Regulations, 2025. These FMEs have launched 327 Alternative Investment Funds with a total targeted corpus of USD  77 billion. There is also a growing momentum in relocation of funds from overseas locations to GIFT IFSC on account of its globally aligned regulatory regime and competitive tax structure.  

Further, a complete capital market ecosystem has been established within IFSC, with the presence of Market Infrastructure Institutions, such as Stock Exchanges, Clearing Corporations, and a Depository, as well as Intermediaries, such as Broker-Dealers, Clearing Members, Custodians, Investment Advisers, Depository Participants.  

The monthly turnover on the Stock Exchanges in IFSC had reached USD 96 billion in December 2025. GIFT IFSC is also emerging as a preferred jurisdiction for listing of debt securities. As of December 2025, 170+ Bonds have been listed on the IFSC Stock Exchanges by around 50 issuers, raising nearly USD 68 billion.  

Niche business sectors such as Aircraft and Ship leasing are also exhibiting strong growth in IFSC. 34 Aircraft leasing firms have been granted approval for operation in IFSC. As of December 2025, these firms have leased 370 Aviation Assets, comprising of196 Aircrafts & Helicopters, 89 Engines, and 85 Aircraft auxiliary power units (APUs), with strong participation of leading commercial airline companies. Similarly, the ship leasing ecosystem is also evolving at a rapid pace given the strong focus of the Government of India to develop the maritime sector in the country. More than 29 ship leasing firms have already been registered with IFSCA.  

To augment talent availability in IFSC, the Government of India has also permitted foreign universities to establish branch campuses in IFSC, offering courses in financial management, fintech, science, technology, engineering and mathematics. Deakin University, University of Wollongong from Australia, and Queen’s University of Belfast have established their International Branch Campuses in GIFT IFSC and have commenced academic operations with the launch of several master’s programmes. This initiative is expected to augment the industry – academia collaboration for employment generation, internship opportunities and research work.  

The Way Forward  

As the participation of global financial institutions grows and the range of financial products and services expands, the financial markets within GIFT IFSC are expected not only broaden in scope but also to deepen liquidity. 

Note: This article has been authored by Dr. Dipesh Shah, Executive Director, IFSCA. It was first published in the March 2026 issue of CII ARTHA (Issue 10)