Overview: GIFT City’s International Financial Services Centre (IFSC) is attracting businesses seeking to manage funding, investments and currency risks across Indian and overseas group companies. Business Standard has reported that investments by corporate treasury centres reached $496 million in June 2026, nearly double than $235 million in March. The growth follows the revised Global or Regional Corporate Treasury Centre (GRCTC) framework issued by the International Financial Services Centres Authority (IFSCA). However, registration, tax eligibility and cross-border compliance remain important considerations.
Corporate treasury centres at GIFT IFSC are gaining attention as Indian and multinational groups look for more efficient ways to manage group funding, liquidity and foreign-exchange risks. The latest reported investment figures indicate growing interest in this option.
While the figures look promising, establishing a treasury centre involves more than comparing tax benefits. Businesses must assess the permitted activities, registration requirements, operating costs and compliance obligations before deciding whether the structure suits their needs.
What Is Driving Interest in GIFT IFSC?
Corporate treasury activity at GIFT IFSC has increased in recent months. Investments by operational treasury centres reached $496 million in June 2026, up from $235 million in March. Loans and advances also rose from $5.61 billion to $6.54 billion over the same period.
Companies reported to have established treasury centres include Zydus Lifesciences, Sun Pharma, Indus Towers and Bharti Airtel. Nearly a dozen applications were under review, while around 20 companies were discussing possible operations, according to the latest industry report published on 13 October 2026.
The figures point to growing interest in centralising group funding, liquidity and foreign-exchange management at GIFT IFSC. However, the commercial case for establishing a treasury centre depends on each group’s operations, funding requirements and compliance costs.
What Can a Corporate Treasury Centre Do?
IFSCA issued its revised GRCTC framework on 4th April, 2025, and amended it on 9th June, 2025. The framework permits registered treasury centres to undertake specified activities for related group entities, subject to applicable conditions.
These activities include:
- Group borrowing, inter-company deposits and credit arrangements.
- Investments in financial instruments and capital-raising activities.
- Foreign-exchange transactions and over-the-counter or exchange-traded derivatives.
- Liquidity management and re-invoicing.
- Specified financial management, funding and risk-management advisory services.
- Certain insurance and pension-related financial management activities.
The GRCTC framework also permits factoring and forfaiting, but treasury centres must obtain separate registration under the applicable IFSCA regulations before undertaking these activities.
Centralising these functions may help eligible groups coordinate surplus cash, borrowing and currency-risk management through one platform. The commercial benefits depend on the group’s funding requirements, transaction volumes and operating structure.
Commodity trading should not be treated as automatically permitted under the existing GRCTC framework. Any expansion into additional activities depends on the applicable regulatory framework and approvals.
What Should Businesses Check Before Applying?
A GRCTC is a regulated financial operation, not simply an internal finance department. Businesses should review the following requirements before proceeding.
1. Registration and business structure
The applicant must follow the IFSCA framework applicable to a Finance Company or Finance Unit. The permitted structure may be a company or a branch of an Indian or foreign company, subject to the relevant requirements.
2. Capital and personnel
The framework prescribes a minimum owned fund of US$200,000. A Finance Unit operating as a branch may maintain the required funds at the parent level, subject to the applicable conditions.
The framework also requires at least five qualified personnel based in the IFSC, including a Head of Treasury and a Compliance Officer, before operations commence. Applicants must make suitable arrangements for governance, infrastructure and regulatory compliance.
3. Approvals and commencement
The entity must obtain the required IFSCA registration and hold a valid Letter of Approval (LoA) under the Special Economic Zones Act, 2005, as applicable to its operations.
Operations must commence within six months of the IFSCA Certificate of Registration. An extension may be requested at least two months before the deadline. IFSCA may grant an extension of up to three additional months, subject to the applicable conditions.
4. FEMA and reporting
Cross-border borrowing, lending, investments and foreign-exchange transactions may involve requirements under the Foreign Exchange Management Act, 1999 (FEMA), along with applicable reporting and documentation obligations.
Businesses should assess these requirements against the proposed transactions and the jurisdictions in which the group entities operate.
5. Tax eligibility
Section 147 of the Income-tax Act, 2025, provides eligible IFSC units a 100% deduction on specified qualifying income for 20 consecutive tax years out of 25 years, at the assessee’s option, following the Finance Act, 2026 amendment.
The deduction is subject to statutory conditions. Businesses must verify the eligibility of the unit, the nature of the income and the applicable requirements before including the benefit in their financial projections. It should not be treated as an automatic tax exemption for every treasury centre.
Setindiabiz Support
Setindiabiz supports businesses with company incorporation, corporate documentation, FEMA and RBI compliance, cross-border documentation and ongoing statutory filings.
For companies evaluating a GIFT IFSC treasury centre, our professionals can help assess the proposed business structure, identify incorporation and documentation requirements, and plan applicable corporate compliance obligations.
IFSCA registration, specialised financial activities and tax eligibility require assessment against the proposed structure and transactions. Businesses should obtain the relevant regulatory and professional advice before committing to the arrangement.
FAQs
A Global or Regional Corporate Treasury Centre manages permitted financial activities for related group entities. These may include group funding, liquidity management, investments and foreign-exchange risk management.
No. The proposed operation must meet the applicable IFSCA framework, registration, capital, staffing, governance and other regulatory requirements.
Section 147 of the Income-tax Act, 2025, provides a 100% deduction on specified qualifying income for 20 consecutive tax years out of 25 years, at the assessee’s option. Eligibility and statutory conditions apply.
Permitted activities include specified borrowing, credit arrangements, investments, foreign-exchange transactions, derivatives, liquidity management and re-invoicing. Certain activities require additional registration or approval.
No. The decision should also consider funding requirements, transaction volumes, operating costs, governance arrangements and cross-border compliance obligations.
GIFT IFSC is attracting greater interest as a base for corporate treasury operations. Indian groups with overseas businesses may find it worth evaluating, but the decision should rest on commercial requirements, regulatory eligibility and compliance costs rather than tax benefits alone.
