By PPPII Guru Rajeev Chadha, Director Adisri Strategic Advisors
1. GIFT City’s Rising Global Standing
The Economic Survey highlights strong momentum in the growth of GIFT City’s IFSC (International Financial Services Centre) as India pushes to become a major global financial hub.
As of November 30, 2025, more than 1,034 domestic and international entities were registered at GIFT IFSC across banking, capital markets, insurance, fintech, and fund management activities.
On the Global Financial Centres Index (GFCI), GIFT City climbed nine places to 43rd among 120 global financial centres — underscoring improved competitiveness. Its fintech ranking also rose significantly.
2. Role of IFSCA as Unified Regulator
The International Financial Services Centres Authority (IFSCA), established in April 2020, is underscored in the Survey as a key structural driver behind GIFT IFSC’s progress. By integrating regulatory oversight previously handled by multiple agencies, the IFSCA has created a unified, globally aligned regulatory framework that accelerates product approvals and innovation.
3. Financial and Market Milestones
IFSC banking units operating within GIFT City now manage more than $100 billion in assets, reflecting deepening financial activity.
Capital markets activity at GIFT City’s exchanges — including derivatives trading and debt issuances — has grown, with significant listings such as ESG-linked securities.
Infrastructure developments like the Foreign Currency Settlement System (FCSS) were highlighted (enabling real-time foreign exchange settlement locally), positioning GIFT City for improved cross-border transaction efficiency.
4. Talent, Education, and Ecosystem
The Survey notes the entry of global academic institutions setting up branch campuses and programmes focused on fintech, cybersecurity, analytics, and computing — strengthening the talent ecosystem at the IFSC.
5. Strategic Shift in Financial Flows
A broader theme in the Survey is that GIFT City’s growth is helping onshore financial activities that had traditionally been routed through offshore jurisdictions. This aligns with the government’s aim to retain and attract global capital, generate high-value jobs, and deepen India’s role in international financial markets.
In essence, the Economic Survey portrays GIFT City and the IFSCA as central to India’s strategy of creating a globally competitive financial hub — with measurable progress in registrations, global rankings, financial activity, regulatory coherence, and ecosystem depth.
