Gujarat International Finance Tec-City is fast emerging as India’s preferred gateway for overseas borrowings, with nearly 65 per cent of external commercial borrowings (ECBs) in FY26 routed through the IFSC.

According to data from the Reserve Bank of India, $18 billion out of the $27.5 billion raised between April and December 2025 was channelled via GIFT IFSC — a significant jump from the previous year — reflecting growing corporate comfort with its regulatory clarity, tax stability and expanding global banking presence, according to a report by Business Standard.

“With the progressive expansion of IFSC banking units (IBUs), the entry of leading global banks, and a stable regulatory and tax framework, GIFT IFSC has moved from being an alternative channel to an increasingly preferred jurisdiction for ECB intermediation,” said Sanjay Kaul, managing director and group chief executive officer, GIFT City.

As of December 2025, the cumulative value of ECBs booked through GIFT IFSC stood at $55.7 billion, officials said.

There were 35 IBUs operating in the financial hub as of September 2025, comprising both Indian and foreign banks. Their cumulative assets stood at around $100 billion till the second quarter (July–September/Q2) of FY26. The IBUs function as offshore banking branches and lend in foreign currencies such as the US dollar, euro, and pound sterling to Indian companies.

“This rising share reflects multiple structural advantages, including competitive costs of funds, operational efficiency, reduced reliance on offshore financial centres, and the presence of globally active banks offering sophisticated treasury and cross-border financing solutions,” Kaul added.

Experts credit the growing traction to an expanding borrower base, along with easier compliance and disclosure requirements. They said corporates now find it simpler to raise funds via GIFT City than through traditional offshore jurisdictions such as London, Luxembourg, Hong Kong, or Singapore.

“An interesting development is the issuance of environmental, social, and governance bonds — green, social, sustainable, and sustainability-linked — which has seen around $16 billion raised so far. This has been enabled by the regulator recognising globally accepted taxonomies for such issuances. This clarity has helped both investors and issuers better understand requirements and compliance standards that investors are comfortable with,” said Pradeep Ramakrishnan, executive director, International Financial Services Centres Authority.