Highlighting the growing preference among Indian corporates to raise foreign debt through GIFT City in Gujarat, K. Rajaraman, Chairman of the International Financial Services Centres Authority (IFSCA), stated that approximately 31 per cent of India’s total External Commercial Borrowings (ECBs) — amounting to $61 billion — originated from GIFT City, last year.
“Traditionally, an Indian corporate wanting to raise about one billion dollars would go to Singapore, London or Hong Kong or Luxembourg to issue bonds, etc. All of that can happen in GIFT City with 35 banks offering all kinds of banking products. Then there is an active bond market supported by the two exchanges NSEIX and INX India. There are nearly $65 billion bonds listed there. The outstanding credit of banks is about $65 billion. Therefore, foreign debt can be easily raised out of GIFT City at a very competitive term,” said Rajaraman during his address at Global Fintech Fest (GFF), Tuesday.
Pointing out that GIFT IFSC provides an option to Indian corporates to raise capital at their doorstep, Rajaraman said, “A lot of corporates raise money out of GIFT City . Last year the total amount of External Commercial Borrowings done by India was about $61 billion. Of this, about $19 billion came from GIFT City, which is about 31 percent.”
Corporates set up or route their borrowing through IFSC Banking Units (IBUs) in GIFT City.
These IBUs act as offshore banking branches and are allowed to lend in foreign currency to Indian entities. Indian companies can borrow in USD, EUR, GBP, etc. through these units.
Among other instruments, companies can issue foreign currency bonds or INR-denominated bonds (Masala Bonds) via GIFT City exchanges like India INX (India International Exchange) NSEIX. These bonds are listed, attracting foreign institutional investors, global banks, and funds.
Published on October 8, 2025
