GIFT IFSC Emerges as Top Route for 65% of FY26 ECBs Worth $18 Billion

GIFT IFSC is rapidly emerging as India’s preferred hub for overseas fundraising, driven by lighter regulations and tax incentives. Its growing share in ECB routing in FY26 signals a structural shift away from traditional offshore financial centres. 

GIFT IFSC’s Rapid Rise as an ECB Hub 

As per news reports, GIFT IFSC has quickly become a leading route for overseas borrowing by Indian firms, capturing about 65% of ECBs raised so far in FY26, a sharp rise from 36% last year.  

RBI data shows $27.5 billion was raised between April–December 2025, with $18 billion channelled through GIFT IFSC, taking cumulative ECBs via the hub to $55.7 billion by December 2025.  

Sanjay Kaul managing director and group chief executive officer, GIFT City, said.  "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,” adding that operational efficiency and globally active banks are tilting flows towards GIFT City. 

Regulatory Ease and Tax Incentives Driving Preference 

The pull factors are lighter compliance, lower funding costs and meaningful tax incentives compared with traditional offshore centres such as London, Luxembourg, Hong Kong and Singapore.  

Fundraising via GIFT City benefits from regulatory relaxations, and units in the IFSC can access non-resident lenders without FEMA constraints that apply to ECBs raised elsewhere.  

Deepening Ecosystem, ESG Funding and Recent Deals 

The ecosystem at GIFT IFSC has strengthened steadily, with 35 IBUs operating by September 2025 and holding around $100 billion in assets by Q2 FY26. These units provide foreign-currency lending in dollars, euros and sterling, expanding funding options for Indian corporates seeking overseas capital. 

Recent activity underscores the growing use of GIFT City as an ECB route, with Piramal Finance securing a $400 million ECB facility, alongside earlier FY26 deals by Indian Railway Finance Corporation and NTPC routed through the IFSC. 

Read More: GIFT City: The New Frontier for Global Stocks, Mutual Funds and NRI Insurance! 

Conclusion  

GIFT IFSC’s rising share of ECBs reflects regulatory ease, tax incentives and a growing IBU ecosystem. With deeper bank participation, ESG issuance traction and extended tax holidays, the hub is becoming a practical alternative to offshore centres for Indian corporates seeking competitive foreign-currency funding. 

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