GIFT IFSC captures 65% of ECBs in FY26 on lower taxes, lighter rules

By Rohit Prajapati, founder of TPZ India, 16+ years in Gandhinagar real estate ·

Introduction: GIFT City: A Dominant Hub for External Commercial Borrowings (ECBs)

GIFT City has rapidly emerged as India's premier International Financial Services Centre (IFSC), capturing a staggering 65% of all External Commercial Borrowings (ECBs) in FY26. This significant shift underscores its growing appeal for global and domestic companies seeking efficient and cost-effective international financing. The success of GIFT City is largely attributed to its favorable tax structures, simplified regulatory framework, and world-class financial infrastructure, making it an attractive destination for any property in Gandhinagar investor.

Strategic Positioning and Benefits

Strategically located, GIFT City serves as India’s crucial gateway to global capital markets. It provides a competitive ecosystem that empowers companies to raise foreign funds at lower costs while enjoying operational flexibility and regulatory clarity. The business-friendly policies have significantly boosted its appeal for NBFCs, banks, and corporates aiming to optimize capital-raising strategies and expand international financial operations. This growth directly impacts the value of property in GIFT City.

Key Highlights of GIFT IFSC's Growth

Here are the key factors contributing to GIFT City's dominance in the ECB market:

  • Dominant ECB Share: GIFT City accounts for approximately 65% of India’s ECB issuances in FY26, marking a significant rise in offshore financing through the zone. This makes investing in property in Gandhinagar within or near GIFT City a very promising prospect.
  • Tax Efficiency: Entities operating within IFSC benefit from:
  • Reduced tax rates
  • Exemptions on certain incomes
  • Tax holidays

These advantages make fundraising considerably more cost-effective.

  • Lighter Regulatory Framework: Simplified compliance norms and faster approvals under the IFSC Authority encourage seamless cross-border borrowing and financial operations.
  • Lower Cost of Capital: Competitive interest rates and access to global liquidity pools help companies secure funding at more attractive borrowing costs compared to domestic markets.
  • Global Financial Hub Vision: With international banking units, fintech firms, and investment funds expanding in the zone, GIFT City is steadily positioning itself as India’s leading offshore financial center.
  • Investor Confidence: Policy stability, strong infrastructure, and transparent governance continue to attract multinational corporations and financial institutions to route ECBs via GIFT City.

Final Thoughts

The remarkable surge in ECB activity through GIFT City highlights its growing role as a preferred financing destination for Indian and global businesses. With its compelling combination of tax advantages, regulatory ease, and strategic global connectivity, GIFT City is poised to further strengthen its position as a key driver of India’s international financial ecosystem. This robust economic activity makes property in GIFT City a highly sought-after investment, promising substantial returns for those looking into property in Gandhinagar.