GIFT City Treasury Centres Gain Momentum as Adani, Arcelor and Global Firms Move Operations

 As per The reuters report, India’s Gujarat International Finance Tec-City is witnessing a rise in corporate treasury activity, with both domestic and global companies moving operations to the financial hub amid policy support and cost advantages. 

Corporate Participation and Expansion Plans 

Adani Group, Bharti Airtel, Genpact and ZF Friedrichshafen are among firms preparing to establish treasury operations in GIFT City. They are set to join ArcelorMittal, which has already secured regulatory licences to set up two treasury centres. 

According to the reports, around 17 corporate treasury units are expected to begin operations within the next 3 months. Since January, activity has accelerated, with 7 companies receiving licences and another 17 at different stages of approval. 

Policy Push and Regulatory Changes 

GIFT City is being positioned as a global financial centre competing with established hubs such as Singapore and Dubai. The government has extended the tax holiday for companies operating in the zone to 20 years and eased regulations to attract more participants. 

Recent regulatory adjustments introduced in April 2025 have further supported growth. One of the key changes allows banks to offer interest on current account balances, a facility not permitted for onshore lenders by the Reserve Bank of India. However, only one foreign bank has implemented this provision so far. 

Strategic Advantages of Treasury Centres in India 

Corporate treasury functions, earlier based in Singapore and the Netherlands, are increasingly shifting to India. These centres handle cash pooling, funding, liquidity, foreign exchange, and risk management. 

Key drivers include lower-cost funding, tax-efficient dividend remittances, the ability to hold dollar assets amid rupee depreciation, and enhanced financial flexibility. This shift also helps India strengthen control and oversight of global financial flows linked to domestic corporates. 

Industry Adoption and Structural Shift 

Dipesh Shah, Executive Director at the International Financial Services Centres Authority, described the rise of treasury centres at GIFT City as a structural shift in how India-linked corporates manage global capital. 

ZF Friedrichshafen is exploring setting up a centre but has not yet applied for a licence. Meanwhile, ArcelorMittal plans to use its GIFT City presence for cash pooling related to its India operations, similar to its treasury structure in Paris. 

Read More: GIFT City Emerges as Key Investment Hub for NRIs with Tax Benefits and Global Access! 

Conclusion 

The growing interest in GIFT City reflects a broader shift in corporate financial strategy, supported by regulatory reforms and cost advantages, positioning the hub as an emerging centre for global treasury operations. 

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