SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure
Institutions: Ministry of Commerce and Industry | Ministry of Finance
The International Financial Services Centres Authority (IFSCA) Bulletin (Q2 2025-26) marks the fifth anniversary of the IFSCA, celebrating the rapid rise of GIFT IFSC as a global financial hub. A key milestone was reached as cumulative banking assets crossed USD 100 billion (specifically USD 100.14 billion as of September 2025), with 35 IFSC Banking Units (IBUs) now operational. These units have facilitated USD 54 billion in foreign currency loans and USD 15.43 billion in trade finance, underscoring the center’s role in intermediating global capital.
The capital markets ecosystem also expanded significantly, with USD 66.6 billion in debt securities listed and monthly turnover on exchanges reaching USD 89 billion in September 2025. Fund management activity surged, with 194 Fund Management Entities (FMEs) managing 310 funds and raising investor commitments exceeding USD 26 billion. Additionally, the insurance sector saw growth with 22 Insurance Offices and reinsurance premiums jumping to USD 199.52 million in Q2 FY25–26. The leasing segment also matured, with 303 aviation assets and 28 ships leased as of September 2025.
Strategic Policy & Global Outreach
IFSCA introduced critical regulatory frameworks to diversify the ecosystem beyond traditional finance:
TechFin & Ancillary Services: The new TechFin and Ancillary Services (TAS) Regulations, 2025 were notified to regulate providers of AI, blockchain, and cybersecurity solutions. As of September 2025, 133 entities have registered under this framework.
Sustainable Finance: To support India’s net-zero vision, a Framework for Transition Bonds was issued, enabling hard-to-abate sectors to raise capital for decarbonization. Cumulative ESG-labeled debt listings reached USD 15.73 billion.
Global Engagements: IFSCA strengthened international ties through high-level visits to Taiwan, Japan, and Australia, focusing on financial and academic partnerships. An MoU was signed with the Australian Securities and Investments Commission (ASIC) to enhance regulatory cooperation.
Future Initiatives: Looking ahead, IFSCA aims to develop GIFT IFSC as a hub for Intellectual Property (IP) ownership, establish a global commodity trading ecosystem based on expert committee recommendations, and introduce Insurance-Linked Securities (ILS).
The breach of the $100 billion asset threshold signals that GIFT City has achieved the critical mass necessary to serve as a credible alternative to global hubs like Dubai or Singapore. The strategic move to regulate TechFin and Transition Finance positions IFSCA as an incubator for next-generation financial technologies and climate solutions, directly supporting the national vision of “onshoring the offshore” financial markets and contributing to Viksit Bharat @2047.
What is the distinction between “Green Bonds” and the newly notified “Transition Bonds”?→ While Green Bonds are used to finance projects that are already environmentally sustainable (like solar power plants), Transition Bonds are financial instruments specifically designed for issuers in carbon-intensive industries (such as steel, cement, or aviation) that are not yet green but need capital to implement credible strategies to reduce their carbon footprint and transition towards cleaner operations.
Relevant Question for Policy Stakeholders: How can the government leverage the new Transition Bond framework to mobilize low-cost international capital specifically for decarbonizing India’s heavy industries?
Follow the full update here: International Financial Services Centres Authority Bulletin