The International Financial Services Centres Authority (IFSCA) is poised to play a pivotal role in India’s vision for 2047. As a unified regulator, IFSCA is responsible for developing and regulating financial institutions, services, and products within India’s International Financial Services Centres (IFSCs). With its internationally aligned regulatory regime, IFSCA aims to create an environment conducive to global financial institutions operating in India. This, in turn, will facilitate the growth of India’s financial sector, making it a key player in the global economy, stated Economic Survey 2025.
As of September 2024, 60 entities had registered as FinTechs or TechFins in GIFT-IFSC, reflecting the region’s dynamic FinTech landscape. IFSCA has conducted 13 hackathons and received 152 applications from 14 jurisdictions under its FinTech Entity framework, showcasing its commitment to innovation.
GIFT IFSC has been witnessing brisk growth, having more than 720 entities across categories. The international and domestic financial services industry is gravitating to this unique jurisdiction which benefits from unrestricted currency convertibility as it is classified as a non-resident zone under the Foreign Exchange Management Regulations. GIFT-IFSC has continued its ascent as a leading IFSC, improving its rank by five places in the ‘Global Financial Centres Index 36’ (GFCI 36), rising to 52nd position. It also achieved a notable jump in the FinTech rankings, climbing four places to rank 45. This progress reflects the concerted efforts of IFSCA in fostering a robust FinTech ecosystem.
The vibrant banking ecosystem in GIFT IFSC comprises foreign and domestic banks set up as branches of the parent bank operating as IFSC Banking Units (IBUs). As of September 2024, the total asset size of IBUs crossed USD 70 billion, and the cumulative value of transactions undertaken by IBUs crossed USD 975 billion. Credit exposure of IBUs stands over USD 51 billion as of September 2024, covering countries like the US, UK, Singapore, UAE, etc., apart from India, the survey noted.
