Banking assets at Gujarat International Finance Tec-City (GIFT City) rose approximately 60% in three months to $193 billion at the end of September 2026, strengthening India’s ambitions to build an international financial centre that can compete with established hubs such as Singapore and Hong Kong.
The increase from $120.69 billion at the end of June was driven mainly by foreign-currency deposits and external commercial borrowings, according to K. Rajaraman, chairperson of the International Financial Services Centres Authority (IFSCA). A special Reserve Bank of India (RBI) swap facility for foreign-currency non-resident deposits also helped boost activity at the financial hub.
Key Takeaways
- GIFT City’s banking assets reached approximately $193 billion at the end of September 2026.
- This represents an increase of around 60% from $120.69 billion at the end of June.
- Foreign-currency deposits and external commercial borrowings were the primary drivers.
- Banks operating through GIFT City also participated in the RBI’s special FCNR(B) deposit swap facility.
- IFSCA reported $52.82 billion in disbursements under the facility by August 31.
- GIFT City is seeking to attract more international banks, investors and financial institutions.
- Tax-related concerns and the need for predictable regulation remain important challenges.
GIFT City Banking Assets Reach $193 Billion
GIFT City, located between Ahmedabad and Gandhinagar in Gujarat, is India’s first operational International Financial Services Centre (IFSC).
It was developed to provide an international platform for banking, capital markets, insurance, asset management, aircraft leasing and other cross-border financial services.
According to IFSCA chairperson K. Rajaraman, banking assets at the financial hub reached approximately $193 billion at the end of September 2026.
The figure compares with $120.69 billion at the end of June, representing an increase of approximately 59.9% in three months.
| Banking assets at GIFT City | Value |
|---|---|
| End-June 2026 | $120.69 billion |
| End-September 2026 | $193 billion |
| Increase | $72.31 billion |
| Growth over the period | Approximately 60% |
The figures refer to banking assets held by institutions operating in GIFT City. They should not be confused with the amount of money deposited by customers or with the total value of investments in the entire financial district.
The rapid increase reflects growing activity in foreign-currency banking and cross-border financing.
What Is Driving the 60% Increase?
The increase in GIFT City’s banking assets is linked to three major developments: foreign-currency deposits, external commercial borrowings and the RBI’s special deposit swap facility.
1. Foreign-currency deposits
Foreign-currency deposits have become an important source of funding for banks operating in GIFT City.
Unlike conventional domestic banking transactions conducted primarily in Indian rupees, IFSC banking units can undertake permitted international financial transactions in foreign currencies.
These deposits provide banks with access to overseas funds that can support lending and other financial activities.
Non-resident Indians and international customers can also use eligible banking products and services offered through institutions operating in the financial centre.
2. External commercial borrowings
External commercial borrowings (ECBs) are loans raised by eligible Indian companies from overseas lenders.
Companies use these borrowings to finance business expansion, infrastructure projects, capital expenditure and other permitted requirements.
GIFT City’s international banking infrastructure allows participating banks to facilitate cross-border financing transactions.
According to an official Ministry of Finance release, international banking units at GIFT IFSC disbursed $11.62 billion in ECBs between April and August 2026.
This activity is contributing to the growing role of GIFT City in connecting international lenders with Indian businesses.
3. RBI’s special FCNR(B) swap facility
The RBI’s special swap facility for Foreign Currency Non-Resident (Bank) deposits, commonly known as FCNR(B) deposits, was another major contributor.
The facility was introduced to encourage banks to attract foreign-currency deposits from overseas Indians by reducing the currency-hedging costs associated with these deposits.
GIFT City-based international banking units played an important role in implementing the programme.
According to the Ministry of Finance, by August 31, 2026:
- 20 international banking units had sanctioned $54.02 billion under the facility.
- Approximately $52.82 billion had already been disbursed.
- The programme saw a rapid increase in sanctions during August.
The facility ran from June through the end of August 2026 and helped increase foreign-currency banking activity at GIFT City.
How GIFT City Is Becoming an International Banking Hub
GIFT City is designed to bring international financial services closer to Indian businesses and investors.
It operates under a regulatory framework overseen by IFSCA, the unified regulator for financial products, services and institutions in India’s IFSCs.
The financial district hosts operations of several major international banks, including:
- HSBC
- Standard Chartered
- Mitsubishi UFJ Financial Group
Asset management companies, including Mirae Asset Investment Managers and Jio BlackRock Asset Management, have also established operations in the hub.
For international financial institutions, GIFT City offers access to Indian business opportunities through a framework designed for cross-border transactions.
Its regulatory structure and tax incentives are intended to attract financial institutions that might otherwise conduct certain international activities through overseas centres.
The latest banking asset figures suggest that more international financial activity is being channelled through the Indian financial hub.
GIFT City Wants to Compete With Singapore and Hong Kong
Singapore and Hong Kong are established financial centres that attract international banks, investment funds, wealth managers and multinational companies.
They provide access to global investors, international capital markets and cross-border financial services.
India wants GIFT City to develop similar capabilities while serving businesses seeking access to the Indian economy.
The financial centre offers an alternative platform for activities such as foreign-currency borrowing, fund management, international banking and capital raising.
The opportunity is significant because Indian companies require substantial financing for domestic expansion and overseas operations.
If more of these transactions are routed through GIFT City, the financial centre could capture a larger share of international financial activity connected to India.
However, competing with Singapore and Hong Kong will require more than rapid growth in banking assets. Global institutions also consider regulatory certainty, tax treatment, market liquidity, ease of doing business and access to skilled professionals.
Tax Uncertainty Remains a Challenge
Despite the increase in banking assets, GIFT City faces questions about the implementation of its tax incentives.
Recent reports have highlighted tax notices received by some investment funds for assessment years 2024-25 and 2025-26, despite exemptions and deductions available to eligible entities operating in the IFSC.
The issue has raised concerns among market participants about the consistency and predictability of tax treatment.
Tax incentives are an important part of GIFT City’s strategy to attract international financial institutions and investment funds.
IFSCA chairperson K. Rajaraman has said that the regulator and the government are working together to ensure that the incentives and policies intended to support the financial centre are implemented.
Clearer guidance and predictable tax administration will be important if GIFT City wants to attract long-term commitments from global financial institutions.
SEBI and IFSCA Explore Dual Listings
Another development that could expand GIFT City’s role is the proposed framework for dual listings.
Under a dual-listing arrangement, eligible Indian companies could potentially list their shares on both domestic exchanges and exchanges operating within GIFT City’s IFSC.
This could provide companies with additional access to international investors and foreign-currency capital.
Rajaraman has said that SEBI and IFSCA are working on the framework, describing dual listing as a goal for the financial centre.
However, the framework is still under development. It should not be interpreted as an already operational route available to all Indian companies.
If introduced with appropriate safeguards, dual listings could strengthen GIFT City’s capital markets and make it more attractive to international investors.
The Bigger Picture
GIFT City’s banking asset growth represents an expansion in India’s participation in international financial transactions. The $193 billion figure reflects increased activity in foreign-currency deposits, overseas borrowing and international banking, supported in part by a temporary RBI swap facility. It also demonstrates how India’s financial infrastructure is being used to connect domestic financing needs with global pools of capital.
However, the sustainability of this growth will depend on whether activity continues beyond temporary policy support. Regulatory certainty, tax clarity, international investor confidence and deeper capital markets will be essential. GIFT City’s long-term success will be measured not only by the size of bank balance sheets but also by its ability to attract lasting financial institutions and facilitate a wider range of global transactions.
Looking Ahead
The next stage of GIFT City’s development will involve expanding international banking, asset management, capital-market activity and financing for Indian companies. The proposed dual-listing framework could create another route for companies to access international investors, while continued participation by domestic and foreign banks may broaden the centre’s financial ecosystem.
For now, the increase to $193 billion marks a significant milestone. The key question is whether GIFT City can sustain this momentum after the RBI’s special swap facility has ended and establish itself as a reliable international financial centre alongside established hubs such as Singapore and Hong Kong.
Frequently Asked Questions
1. What are GIFT City’s banking assets?
GIFT City’s banking assets are the assets held by banks operating through the financial centre’s international banking units. These include assets associated with lending, deposits and other banking activities.
2. How much have GIFT City’s banking assets increased?
Banking assets reached approximately $193 billion at the end of September 2026, up from $120.69 billion at the end of June. This represents growth of approximately 60%.
3. What is driving the growth in GIFT City banking assets?
The main drivers are foreign-currency deposits, external commercial borrowings and increased activity under the RBI’s special FCNR(B) deposit swap facility.
4. What is the RBI’s FCNR(B) swap facility?
It is a special facility designed to encourage banks to attract foreign-currency deposits from non-resident Indians by reducing the currency-hedging costs associated with those deposits.
5. Which regulator oversees GIFT City?
The International Financial Services Centres Authority (IFSCA) is the unified regulator responsible for financial products, services and institutions operating in India’s International Financial Services Centres.
6. Which major international banks operate in GIFT City?
Major international banking groups with operations in GIFT City include HSBC, Standard Chartered and Mitsubishi UFJ Financial Group.
7. Why does India want GIFT City to compete with Singapore and Hong Kong?
India wants to attract international banking, investment funds, capital raising and cross-border financial transactions that might otherwise be conducted through overseas financial centres.
8. What is the proposed dual-listing framework for GIFT City?
The proposed framework being developed by SEBI and IFSCA aims to allow eligible Indian companies to access investors through listings in GIFT City’s IFSC market alongside domestic exchanges. The framework is still under development.
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