“India’s growth story needs strong capital flows, both equity and debt, and the IFSC is emerging as a critical platform to mobilise global funds into key sectors like infrastructure, manufacturing, and renewable energy,” Rajaraman said.
In just five years since its inception, the IFSC at GIFT City has achieved several milestones. The financial hub now houses 35 banks with total assets of over $100 billion and has facilitated bond issuances exceeding $65 billion, including $15 billion in green and social bonds. “GIFT City has become a gateway for global corporate finance. We are seeing increasing interest from both Indian and international firms to use this platform for raising funds,” Rajaraman added.
The IFSCA chief said that the ecosystem at GIFT City is gradually expanding to serve both inbound and outbound capital needs. More than 12,000 non-resident Indians (NRIs) now maintain deposits in IFSC banks, while over 300 Alternate Investment Funds (AIFs) have been registered, mobilising equity for Indian markets. “We’ve only touched the tip of the iceberg in terms of NRI participation,” Rajaraman remarked, highlighting the growing confidence of overseas investors.
The authority is also taking steps to simplify regulatory processes and improve ease of doing business. A digital KYC framework is being developed to help onboard foreign investors quickly, and payment service providers are being integrated to streamline cross-border transactions. “Our goal is to align with the best global standards and make GIFT City globally competitive,” Rajaraman said.
Earlier last month, Finance Minister Nirmala Sitharaman urged regulators to make the IFSC more cost-effective and attractive for global investors. Rajaraman said that the IFSCA is working in that direction by benchmarking its framework against other financial hubs like Singapore and Dubai.
As India accelerates its growth ambitions, the IFSC is expected to act as a bridge for global capital. “We are just at the beginning of what can become a major global financial ecosystem within India,” Rajaraman said. “The IFSC will be instrumental in linking India’s economic potential with the world’s capital.”
Watch accompanying video for entire conversation.
