India’s offshore financial hub has just crossed a massive milestone. Banking assets at Gujarat International Finance Tec-City (GIFT City) surged to $193 billion by the end of September 2026. This marks a dramatic 60% jump from the $120.69 billion recorded just three months earlier in June.
The International Financial Services Centres Authority (IFSCA) confirmed these numbers. In a recent interview, IFSCA Chairperson K. Rajaraman highlighted that this $72.31 billion growth spurt positions GIFT City as a serious rival to established financial hubs. Global banking giants are now rapidly scaling their Indian operations.
Key Highlights at a Glance
- $193 Billion Milestone: Total banking assets hit a record high at the end of September 2026.
- 60% Quarterly Growth: Assets grew by approximately $72.31 billion in just three months.
- RBI Swap Catalyst: The Reserve Bank of India's special swap facility heavily fueled this rapid foreign currency influx.
What Drove GIFT City's 60% Asset Surge in Q3 2026?
A $72 billion asset jump in a single quarter does not happen by accident. According to Rajaraman, three main factors fueled this record-breaking growth. First, credit markets saw massive activity. Banks lent more money to corporate borrowers to fund infrastructure and global expansion.
Second, foreign-currency deposits spiked. Banks in GIFT City hold funds in dollars, euros, and other foreign currencies. These deposits allow banks to manage cross-border trades smoothly. Third, External Commercial Borrowings (ECBs) rose sharply. Indian firms are increasingly using GIFT City to secure loans from non-resident lenders.
| Metric / Parameter | Previous Baseline (June 2026) | Current Figure (Sept 2026) |
|---|---|---|
| Total Banking Assets | $120.69 Billion | $193 Billion |
| Quarterly Asset Growth | N/A | +$72.31 Billion (~60%) |
Global financial giants like HSBC, Standard Chartered, and Mitsubishi UFJ Financial Group (MUFG) are driving this charge. Asset managers like Mirae Asset and JioBlackRock are also rapidly expanding their local footprints.
Decoding the RBI Special Swap Facility
Behind the scenes, the Reserve Bank of India (RBI) played a major role. From June through August 2026, the RBI ran a special swap facility for foreign-currency non-resident deposits. But how did this actually work?
The RBI offered highly favorable forward premiums to banks. This artificially incentivized banks to bring in massive amounts of foreign currency deposits. It created a temporary, highly profitable window for foreign capital to flow into the hub.
"Sustained growth has come through credit markets, especially offered by the banks." — K. Rajaraman, IFSCA Chairperson
While this facility was a critical catalyst, it is not the sole reason for the boom. The structural appeal of GIFT City’s tax exemptions also kept the momentum going long after the window closed.
Tax Notices and Regulatory Headwinds: The Friction Points
Despite the massive growth, the journey is not entirely smooth. GIFT City promises deep tax exemptions to attract global funds. However, ground realities sometimes clash with policy promises. Recent local reports indicate a growing regulatory friction point.
Several investment funds operating in GIFT City reportedly received tax notices for the 2024–25 and 2025–26 assessment years. These notices demand taxes despite the legal exemptions these funds supposedly hold. For foreign investors, this creates a dreaded "tax terrorism" narrative.
Predictability is everything for foreign capital. Rajaraman confirmed that the IFSCA is actively working with the Finance Ministry to resolve these disputes. The goal is to align tax officers with the hub’s pro-business mandate, ensuring policies are respected on the ground.
SEBI and IFSCA’s Dual Listing Plan for Indian Firms
The next major leap for GIFT City is the proposed dual listing framework. Currently, the Securities and Exchange Board of India (SEBI) and IFSCA are building a bridge for local companies. The goal is to let Indian firms list their shares simultaneously on domestic exchanges and at GIFT City.
This allows Indian businesses to raise capital directly from global investors in foreign currencies. A workable framework requires strict rules. Regulators must solve complex issues regarding public shareholding limits, dual taxation, and market surveillance.
If executed well, this dual listing system will eliminate double compliance burdens. It will provide a transparent, tax-efficient route for foreign dollars to enter Indian markets without facing domestic exchange friction.
Singapore vs. GIFT City: The Reality Check
GIFT City is frequently compared to global giants like Singapore and Hong Kong. The $193 billion milestone certainly puts India in the international conversation. However, a reality check is necessary to understand the true scale.
While $193 billion is a massive achievement for India, Singapore’s banking system manages trillions in assets. Singapore offers decades of regulatory stability and deep market liquidity. GIFT City is growing fast, but it remains a young challenger in the Asian financial landscape.
To truly compete, GIFT City must move beyond temporary RBI swap windows. It must prove that its long-term tax structures are safe, clear, and fully reliable.
What to Watch Next in India’s Global Finance Push
The coming months will test GIFT City’s momentum. The immediate focus is on how quickly SEBI and IFSCA finalize the dual listing rules. A confirmed launch date will trigger a new wave of corporate interest.
Investors will also watch the resolution of the recent tax notices closely. Resolving these disputes quickly will restore foreign confidence. If banking activity deepens, GIFT City could soon become the primary gateway for all cross-border Indian corporate finance.
Frequently Asked Questions (FAQs)
Clear answers on GIFT City’s record growth, RBI's role, and the dual listing proposals.
What are the current banking assets in GIFT City?
As of September 2026, total banking assets in GIFT City reached approximately $193 billion. This represents a 60% increase from the $120.69 billion recorded at the end of June 2026.
Why did GIFT City assets surge so quickly?
The rapid 60% growth was driven by a spike in foreign-currency deposits, increased external commercial borrowings, and a special RBI swap facility that heavily incentivized foreign capital inflows.
How did the RBI special swap facility help?
The RBI offered highly favorable forward premiums to banks between June and August 2026. This profitable window encouraged banks to rapidly bring massive amounts of foreign currency deposits into the hub.
What is the SEBI dual listing plan for GIFT City?
SEBI and IFSCA are designing a framework that allows Indian companies to list their shares simultaneously on domestic exchanges and at GIFT City. This grants direct access to global investors.
Why are tax notices causing concern in GIFT City?
Several investment funds reportedly received tax demand notices despite holding legal tax exemptions. This friction raises concerns about regulatory predictability, though authorities are working to resolve the issue swiftly.
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