Banking assets at India’s GIFT City surged to $193 billion by September 2026, marking a 60% increase in just three months. This rapid growth, driven by foreign currency loans and global banking participation, signals the zone's rising influence. However, investors are watching how the government resolves recent tax notice issues to maintain the hub's competitive edge for international capital.
The Gujarat International Finance Tec-City, commonly known as GIFT City, has reached a significant milestone in its goal to become a global financial hub. Latest data shows that total banking assets in the zone reached $193 billion by the end of September 2026, a sharp increase from $120.69 billion recorded just three months earlier in June. This 60% growth highlights how the zone is increasingly serving as a gateway for foreign capital to enter and exit India.
The surge in assets is largely driven by increased activity in credit markets and deposits held in foreign currencies. A specific short-term liquidity support measure, known as a swap facility, provided by the Reserve Bank of India between June and August, acted as a major catalyst for this growth. By providing this liquidity, the central bank helped banks operate more actively within the international financial zone during that period.
Several major global financial institutions, including HSBC, Standard Chartered, and Mitsubishi UFJ Financial Group, have established significant operations in the zone to take advantage of its special regulatory status. Beyond traditional banking, the ecosystem is attracting large asset managers like Mirae Asset and Jio BlackRock. Looking ahead, the zone aims to facilitate dual listings, which would allow Indian companies to raise capital by listing on global stock exchanges directly through GIFT City. The Securities and Exchange Board of India and the International Financial Services Centres Authority are currently refining the regulations needed to launch this facility.
Despite the strong momentum, the hub faces challenges regarding the consistency of tax incentives. Recent tax notices sent to certain investment funds have caused unease among global players. Tax stability is the primary reason many firms choose to establish their base in the zone, as it helps them manage costs and operations more efficiently. If these incentives face uncertainty, it could impact the willingness of multinational firms to expand their footprint in the region.
The International Financial Services Centres Authority has acknowledged these concerns and stated that officials are working with the government to address these tax implementation issues. For investors and market participants, the next important development to track will be the clarity and reliability of tax rules in the zone. The resolution of these notices will likely be a key factor in whether the hub can maintain its rapid growth rate and continue attracting global asset managers.