GIFT IFSC Expands Role as India’s International Banking and Capital-Raising Hub

Posted by Written by Archana Rao Reading Time: 3 minutes

Gujarat International Finance Tec-City, or GIFT City’s International Financial Services Centre (GIFT IFSC), is seeing a sharp increase in cross-border banking activity, with international banking units (IBUs) scaling up foreign currency mobilisation, external commercial borrowings, and international bond listings.

The latest figures released by the International Financial Services Centres Authority (IFSCA) indicate that India’s GIFT IFSC is becoming an increasingly important channel for connecting Indian financial institutions and businesses with overseas sources of capital.

As of 31 August 2026, 20 IBUs had sanctioned US$54.02 billion under the Reserve Bank of India’s special swap facility for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits. Of this amount, approximately US$52.82 billion had been disbursed.

The scale of activity has increased considerably within a short period. Aggregate sanctions stood at US$28.60 billion on 14 August, rising to US$37.26 billion on 21 August before reaching US$54.02 billion by the end of August.

India’s GIFT IFSC strengthens foreign currency mobilisation

The participation of both Indian and international banks highlights the expanding capacity of the GIFT IFSC banking ecosystem to support cross-border liquidity flows.

IBUs operating in the centre are increasingly being used to access foreign currency from international markets and channel those funds toward India’s financing requirements. The participating banks include major domestic institutions as well as foreign banks, demonstrating the breadth of the banking network developing within the IFSC.

For businesses and financial institutions, this creates an additional avenue for accessing international liquidity through an India-based financial centre operating within the IFSC framework.

ECB activity adds to cross-border financing momentum

The growth in GIFT IFSC’s banking activity extends beyond the FCNR(B) swap facility.

Between April and August 2026, IBUs at GIFT IFSC disbursed US$11.62 billion in External Commercial Borrowings (ECBs). Monthly disbursements increased from US$1.54 billion in April to US$3.54 billion in August, pointing to a greater acceleration in cross-border borrowing activity.

Banks increase international bond listings into GIFT IFSC

GIFT IFSC is also expanding its role in international capital markets through bond listings.

Indian banks raised US$11.12 billion through bond listings on IFSC exchanges between April and August 2026. A substantial US$9.17 billion of these bonds were listed during July and August alone, indicating a marked increase in activity toward the latter part of the period.

The development strengthens the capital-markets dimension of GIFT IFSC, complementing its growing banking and foreign currency financing activities.

According to the Gujarat IFSCA, funding mobilisation through the IFSC is drawing participation from multiple overseas jurisdictions, including the United Kingdom, the United States, Mexico, West Asia, Hong Kong, Singapore, and parts of Africa.

What the development means for businesses

The rapid expansion of banking activity at GIFT IFSC could have broader implications for companies with international financing requirements.

Businesses and financial institutions exploring foreign currency borrowing, cross-border debt financing, or international capital-market access may increasingly consider GIFT IFSC as part of their financing strategy. Its growing ecosystem of IBUs, exchanges, and financial institutions also supports the country’s objective of developing a globally competitive international financial centre.

The increased activity follows the central government’s direction to public sector banks to make greater use of the financial services ecosystem and institutional infrastructure available at GIFT IFSC, particularly in implementing RBI facilities relating to FCNR(B) deposits and ECBs.

GIFT IFSC moves toward a more integrated financial ecosystem

The combined growth in FCNR(B) swap facility utilisation, ECB disbursements, and international bond listings signals a broader evolution of GIFT IFSC rather than growth in a single banking segment.

The latest figures suggest that the centre is developing into a more diversified platform encompassing foreign currency liquidity, cross-border lending, international debt markets, and financial intermediation.

For international businesses and investors, the continued expansion of this ecosystem could make India’s GIFT IFSC increasingly relevant when evaluating financing structures and cross-border financial transactions involving India.

About Us

India Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Delhi, Mumbai, and Bengaluru in India. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Vietnam, Indonesia, Singapore, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.

For a complimentary subscription to India Briefing’s content products, please click here. For support with establishing a business in India or for assistance in analyzing and entering markets, please contact the firm at india@dezshira.com or visit our website at www.dezshira.com.