Highlighting the growing preference among Indian companies to raise foreign debt through GIFT City in Gujarat, K. Rajaraman, chairman of the International Financial Services Centers Authority (IFSCA), said that about 31 percent of India’s total external commercial borrowings (ECBs) – amounting to $61 billion – came from GIFT City last year.
“Traditionally, an Indian company looking to raise about a billion dollars would go to Singapore, London, Hong Kong or Luxembourg to issue bonds, etc. All that can happen at GIFT City, where 35 banks offer all kinds of banking products. Then there is an active bond market, supported by the two exchanges NSEIX and INX India. There are almost $65 billion in bonds there noted. The banks’ outstanding credit amounts to approximately $65 billion.” Therefore, foreign debt can be easily raised from GIFT City at a very competitive term,” Rajaraman said while speaking at Global Fintech Fest (GFF) on Tuesday.
Pointing out that GIFT IFSC offers Indian companies the opportunity to raise capital from their homes, Rajaraman said, “Many companies are raising money from GIFT City. Last year, the total amount of external commercial borrowing by India was about $61 billion. Of this, about $19 billion came from GIFT City, which is about 31 percent.”
Companies originate or route their loans through IFSC Banking Units (IBUs) in GIFT City.
These IBUs act as offshore bank branches and are allowed to lend in foreign currencies to Indian entities. Indian companies can borrow in USD, EUR, GBP, etc. through these units.
Companies can issue foreign currency bonds or INR denominated bonds (Masala Bonds) through GIFT City exchanges such as India INX (India International Exchange) NSEIX, among others. These bonds are listed on the stock exchange and attract foreign institutional investors, global banks and funds.
Published on October 8, 2025
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