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India’s first International Financial Services Centre (IFSC), launched in 2015 at GIFT City, Gandhinagar, Gujarat, acts as a gateway for global financial operations. Strategically positioned to connect markets from Hong Kong to London and New York, it leverages India’s skilled talent and resources. Liberalised regulations and tax incentives have strengthened its appeal, aiming to “onshore the offshore” financial services. Supported by progressive reforms, IFSC fosters innovation and collaboration aligned with India’s vision of becoming a global business hub. Located along the Delhi-Mumbai Industrial Corridor, GIFT City offers smart infrastructure and unified regulation, attracting banks, funds, insurers, fintechs, bullion traders, and aircraft lessors. Proposed by the Percy Mistry Committee in 2007, IFSC gained momentum with the IFSCA Act, 2019, creating a unified regulator. In 2023, IFSCA acquired SEZ powers and introduced a Single Window IT System, streamlining approvals and enhancing ease of doing business.
The Government of India established International Financial Services Centres Authority in April 2020 under the International Financial Services Centres Authority Act, 2019, passed by the Indian Parliament.
The composition of the IFSCA is as under:
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Chairperson appointed by the Central Government
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An ex-officio member each nominated by SEBI, RBI, IRDAI and PFRDA
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Two ex-officio members nominated by the Central Government from amongst the officials of the Ministry dealing with Finance
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Two other members appointed by the Central Government on the recommendation of a selection committee
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The banking sector plays a vital role in economic growth. India’s domestic banking system, regulated by RBI, primarily serves local businesses. With increasing globalisation and cross-border transactions, IFSCs were introduced to onshore activities currently conducted offshore. RBI initially launched international banking units, later governed by IFSCA under the IFSCA (Banking) Regulations, 2020. Banks must obtain licenses to set up IFSC Banking Units or Companies. To enhance ease of doing business, IFSCA issued the IFSC Banking Handbook in 2021, consolidating detailed directions for IBUs and updating them regularly. These measures have streamlined operations and strengthened India’s global banking presence.
IFSCA’s 2022 amendment introduced the Global Administrative Office (GAO) framework, allowing Indian and foreign banks to set up GAOs in IFSC GIFT City. GAOs act as support units and communication hubs, managing parent bank operations and offering services for permitted activities within or outside IFSC. Banks can now perform functions like product development, market research, and marketing—activities restricted under RBI regulations in India—from IFSC. This framework provides foreign banks a cost-effective alternative to offshore branches while enhancing operational flexibility.
IFSCA’s Finance Company Regulations, 2021 allow Finance Companies (FCs) and Finance Units (FUs) to operate from IFSC GIFT City, enabling lending, investing, treasury operations, and activities similar to IBUs, excluding public deposits. The framework permits specialised services like derivatives trading, factoring, forfaiting, aircraft and ship leasing, and trade finance platforms. By facilitating non-bank financial institutions, these regulations expand IFSC’s scope, attract global players, and strengthen India’s position as a competitive international financial hub.
Global/Regional Corporate Treasury Centres (GRCTCs) enable multinational corporations to centrally manage and optimise group funds. The IFSCA Finance Company Regulations, 2021 provide a framework for setting up finance companies/units in IFSC, permitting GRCTC activities. A June 2021 report emphasised attracting Indian MNCs to IFSC for global treasury operations. Subsequently, IFSCA issued a framework for GRCTCs in IFSC GIFT City in June 2021 and updated it on April 4, 2025, aligning with international best practices and promoting ease of business.
Factoring transactions in IFSC were earlier governed by RBI’s Registration of Factors Regulations, 2022 and IFSCA’s guidelines on factoring and forfaiting. Assignment of receivables was covered under RBI’s Registration of Assignment of Receivables Regulations, 2022. To comply with the Factoring Regulation Act, 2011, IFSCA issued the 2024 Regulations on registration of factors and assignment of receivables. A “factor” is an NBFC, bank, or company engaged in factoring business under applicable laws.
With IFSC’s growing role in international financial services, IFSCA issued a framework on July 9, 2021 for setting up International Trade Financing Services (ITFS) platforms to provide trade finance. To improve ease of doing business, revised guidelines for ITFS setup and operations were issued on December 23, 2024.
ITFS is an electronic platform enabling exporters and importers to access financing for trade receivables/payables from multiple financiers at competitive rates, allowing banks and financiers to expand reach without physical presence.
Global In-house Centres (GICs) are offshore units providing back-end services like customer onboarding, trade reconciliation, risk and compliance, transaction processing, and advanced functions such as credit analytics and AML. Jurisdiction choice depends on talent, infrastructure, and tax incentives. Leveraging IFSC’s ecosystem, IFSCA introduced GIC Regulations in November 2020, enabling GICs in GIFT City to support group financial entities—banks, NBFCs, insurers, brokers, funds—serving only non-resident clients for financial products and services.
Intermediaries facilitate access to financial products and investment opportunities, playing a vital role in building a strong capital market ecosystem. To regulate them, IFSCA issued Capital Market Intermediaries Regulations, 2021 on October 18, 2021, covering registration, net worth, and obligations. IFSC GIFT City hosts two recognised stock exchanges—India INX and NSE IX—offering extended trading hours in diverse products. To meet evolving needs and align with global best practices, IFSCA introduced revised CMI Regulations on April 16, 2025.
IFSCA issued the Issuance and Listing of Securities (ILS) Regulations, 2021 to enable listing of securities - shares, debt, SPACs, depository receipt, of Indian and foreign companies on IFSC exchanges. In 2023, the Finance Minister announced allowing direct listing of Indian public companies in IFSC. Based on SCOP committee recommendations and public feedback, IFSCA replaced ILS Regulations with the new Listing Regulations, 2024, notified on August 29, 2024. These regulations permit Indian companies to issue and list shares on recognised IFSC exchanges.
Recognising fintech’s role in developing international financial centres, IFSCA issued a detailed framework on April 27, 2022 to promote a world-class fintech hub at IFSC GIFT City. It encouraged innovative solutions across banking, insurance, securities, and fund management. Recently, IFSCA notified TechFin and Ancillary Services Regulations, 2025, creating a unified framework for technology-driven financial services and support activities. These regulations consolidate and replace earlier fintech provisions, streamlining operations and fostering advanced technological solutions for financial products and services in IFSC.
IFSCA has issued the following regulations for development of payment services and payments and settlement system ecosystem in IFSC-GIFT City for enabling cross border payments.
IFSCA (Payment Service) Regulations, 2024
IFSCA (Payment and Settlement Systems) Regulations, 2024
To create a globally aligned regulatory framework for investment funds and promote ease of doing business, IFSCA formed an expert committee to scale up venture capital and private equity in IFSC GIFT City. The committee reviewed leading jurisdictions like Luxembourg and Singapore, leading to the Fund Management Regulations, 2022, which regulate fund managers rather than funds. To update these, IFSCA sought public comments in August 2024 and notified revised Fund Management Regulations, 2025 in February 2025, positioning IFSC as a preferred global fund hub.
India has become a major market for global aircraft supplies, with rapid aviation growth, domestic traffic grew at 10.76% CAGR and international at 8.32% between 2007-08 and 2017-18. India now holds the world’s third-largest aircraft order, with fleet size projected to exceed 5,000 by 2050. High purchase costs make leasing popular, but Indian operators rely on foreign lessors. To onshore this business, IFSC GIFT City was identified in 2019’s “Project Rupee Raftaar.” GOI notified aircraft leasing as an eligible product under IFSCA Act, 2019. IFSCA introduced a regulatory framework in 2021, updated in May 2022 and February 2025.
Insurance is a global business and an important segment for economic development, global economic integration and growing international trade. There are more than 250 operational special economic zones in India. Industrial estates, free ports, large-scale international businesses and multinational corporations are also operational in special economic zones. The presence of these businesses opens immense opportunities for the insurance business.
India’s commodity exchanges mainly offer futures trading for hedging gold price risks, while spot exchanges enable price discovery and physical delivery. To enhance transparency and position India as a gold price setter, the Government notified bullion spot contracts and depository receipts as financial products under the IFSCA Act, 2019. IFSCA introduced bullion exchange regulations in 2020 and revised them in 2025 to create an integrated ecosystem for trading members, depositories, vault managers, and qualified jewellers. India International Bullion Exchange (IIBX) was established in IFSC, allowing qualified jewellers to import gold and silver. Guidelines for Direct Market Access and Sponsored Access were also issued.
Maritime transport drives global trade, with 95% of India’s trade by volume and 70% by value via sea routes. In June 2021, IFSCA formed a committee to develop a Ship Acquisition, Financing and Leasing (SAFAL) regime at IFSC. The SAFAL report recommended tax, legal, and regulatory changes to promote ship leasing. Following the success of aircraft leasing, IFSCA aims to position IFSC as a hub for international ship leasing under ‘Atma Nirbhar Bharat.’ Ship leasing, including operating and hybrid leases, is recognised as a financial product under IFSCA Act. The Framework for Ship Lease was issued on 16 August 2022.
IFSCA introduced an ancillary services framework in February 2021 for legal, compliance, consulting, and related services in IFSC. In June 2024, BATF Regulations moved accounting, bookkeeping, and taxation under a separate regime. Later, TAS Regulations (effective July 2025) created a unified framework for techfin and ancillary service providers, promoting ease of business and consolidating earlier guidelines. These regulations support BFSI institutions and technology-driven financial services under the IFSCA Act, 2019.
On 18 January 2024, the Government of India recognised bookkeeping, accounting, taxation, and financial crime compliance services as ‘financial services’ under Section 3 of the IFSCA Act, 2019. Following this, IFSCA issued BATF Regulations on 4 June 2024 to position IFSC GIFT City as a global offshore centre for these services. The regulations provide a framework for registering entities to undertake permissible activities, enhancing competitiveness and attracting global players.
To address India’s growing demand for foreign education, Budget 2022 allowed world-class foreign universities to offer financial services courses in IFSC GIFT City. On 23 May 2022, the government notified permissible courses in financial management, fintech, and STEM as ‘financial services.’ Subsequently, IFSCA issued regulations on 11 October 2022 enabling foreign universities to set up international branch campuses (IBCs) and offshore education centres (OECs) in IFSC, fostering global education access and collaboration.
An IFSC predominantly caters to customers outside the jurisdiction of the domestic economy and deals with the flow of finance, products and services across borders. Generally, an IFSC is considered to be a business-friendly zone, and there are certain tax incentives available to units operating in an IFSC under the Indian tax laws.
With successive budget announcements, the IFSC now has an internationally competitive tax regime in India. To further supplement this, the IFSCA is actively engaging with various stakeholders to put in place a modern and internationally benchmarked tax and regulatory framework for units established in IFSC.
