Over 65% ECBs worth $18 billion routed via GIFT-IFSC in FY26 so far

Nearly two-thirds of external commercial borrowings (ECBs) booked so far in the ongoing financial year have been routed through GIFT City, a sharp rise from 36 per cent recorded in FY25. Data from the Reserve Bank of India (RBI) shows that total ECBs raised between April and December 2025 stood at $27.5 billion. Of this, $18 billion was routed via the International Financial Services Centre (GIFT-IFSC), according to data shared by GIFT City officials. “Entities which have set up units in GIFT City can raise funds from non-resident lenders without any FEMA restrictions as the ECB regulations do not apply to such fund-raises. Additionally, any interest paid by the GIFT units is also exempt from Indian tax for the non-resident lenders. Typically, Indian borrowers would need to bear the tax costs of such borrowings in order to sweeten the deal for foreign lenders. This cost is reduced significantly when raising funds through GIFT City,” said Surajkumar Shetty, partner, JSA Advocates & Solicitors. Read more