Inside GIFT City’s IFSC: India’s Answer to Singapore, Dubai, and London

India's financial landscape is undergoing an unprecedented transformation, with GIFT City's International Financial Services Centre (IFSC) emerging as a pivotal force in the global investment ecosystem. What once was an ambitious vision has now become a thriving, independent financial hub—no longer just an extension of Mumbai's financial district, but a formidable rival to global giants like Singapore, Dubai, and London.

The recently concluded IFSCA-IVCA Fund Management Conclave 2025, held on March 12th at GIFT City, sent a clear message: India isn't just adapting to global financial trends—it's positioning itself to lead. The event gathered key stakeholders, including policymakers, fund managers, and industry leaders, to chart the future of IFSC's role in accelerating capital flows and bolstering India's standing in global finance.

IFSC's Meteoric Rise: By the Numbers

IFSC's growth story is nothing short of staggering. Its balance sheet has skyrocketed from $14 billion in 2020 to an impressive $78 billion in 2025. Debt listings have exceeded $64 billion, with $15 billion dedicated to ESG-focused funds. The number of registered funds has surpassed 215, and GIFT City now hosts 29 banks, transforming what was once an unfamiliar concept into a bustling financial powerhouse.

This rapid rise is no accident. IFSC's evolution is fueled by a mix of progressive policies, regulatory incentives, and a proactive approach to industry feedback. As Pradeep Ramakrishnan, Executive Director of IFSCA, emphasized during his address, GIFT City isn't just a branch office of India's financial hubs—it's an independent ecosystem designed to foster innovation and credibility on the global stage.

Governance, Compliance, and Innovation at the Core

A key pillar of IFSC's success lies in its robust regulatory framework. Ramakrishnan highlighted the importance of governance and compliance in building global trust.

"The cost of compliance is far lower than the cost of non-compliance," he remarked, stressing the vital role of Principal Officers (POs) and Compliance Officers (COs) in ensuring operational transparency and integrity.

To further streamline fund management operations, IFSCA is introducing a master circular and innovative structures like the Special Purpose Vehicle (SPV) model. Fee waivers for the first 10 ESG funds—with a few slots still open—demonstrate the authority's commitment to encouraging sustainable investment.

Dr. Dipesh Shah, Executive Director (Development), IFSCA, echoed this sentiment, advocating for the establishment of a PO-CO forum at future conclaves. This forum would provide a dedicated platform for compliance leaders to discuss best practices, regulatory frameworks, and operational challenges, ensuring IFSC's continued credibility and global competitiveness.

Beyond Traditional Finance: New Frontiers for IFSC

While fund management remains a core focus, GIFT City is rapidly expanding into emerging sectors such as aircraft and ship leasing—industries traditionally dominated by global hubs like Dublin and Singapore. Dr. Shah highlighted how IFSC's progressive policies and business-friendly environment are attracting international players to these sectors, marking a significant shift in India's global financial positioning.

The push towards sustainable finance is another transformative step. ESG funds are gaining traction, and IFSC aims to become a leader in this space. The recent fee waivers are just the beginning—the focus is now on building a comprehensive ESG ecosystem, drawing in both global and domestic players.

A Vision for 'Viksit Bharat 2047'

K Rajaraman, Chairperson of IFSCA, underscored the broader economic reforms supporting IFSC's growth. From inflation targeting and the Insolvency and Bankruptcy Code to the replacement of outdated colonial-era laws, India's regulatory overhaul is creating a more competitive, transparent, and resilient financial environment.

Rajaraman highlighted the goal of expanding financial inclusion, noting that while 110 million unique investment accounts are impressive, the ambition is to raise this to 30–40% of the population. Achieving this requires a stronger, more trustworthy capital market ecosystem—a role that IFSC is primed to play.

As India works towards the 'Viksit Bharat 2047' vision, positioning itself as a global economic leader, GIFT City's IFSC stands as a cornerstone of this journey. Its rapid rise, underpinned by innovation, governance, and a commitment to sustainable finance, signals that India is not just participating in the global financial race—it's setting the pace.