In a major boost to India’s ambition of creating a world-class financial center, several multinational conglomerates—including the Adani Group and ArcelorMittal—are moving their global treasury operations to GIFT City (Gujarat International Finance Tec-City).
According to reports on May 5, 2026, this shift marks a significant pivot away from traditional financial hubs like Singapore, Dubai, and the Netherlands.
Key Corporations Joining the Hub
Sources indicate that at least 17 corporate treasuries are expected to begin operations within the next three months. Early movers and those in the pipeline include:
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Adani Group: Onshoring capital management for its diverse infrastructure and energy portfolio.
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ArcelorMittal: The world’s second-largest steelmaker has already secured regulatory licenses for two treasury centers.
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Bharti Airtel: Moving telecom-related financial risk management to the zone.
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Genpact: The U.S.-based professional services firm is establishing a base for its global cash operations.
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ZF Friedrichshafen: The German automotive giant is part of the first wave of industrial firms utilizing the center.
Why the Shift? The “GIFT” Advantage
GIFT City is rapidly becoming a “tax-neutral” alternative to Singapore and Dubai due to several strategic policy updates implemented in early 2026:
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20-Year Tax Holiday: The government recently extended the tax holiday for firms operating in the IFSC, providing long-term fiscal certainty.
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Dollar-Denominated Assets: Companies can hold assets and conduct transactions in US Dollars, shielding them from the recent volatility of the Indian Rupee.
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Dividend Flexibility: Lower taxes on remitting dividends and excess cash to overseas units make it a frictionless hub for moving capital globally.
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Regulatory Ease: The IFSCA (International Financial Services Centres Authority) has streamlined rules for “Global Treasury Centres,” allowing for centralized liquidity management and foreign exchange risk hedging.
Strategic Context: The West Asia Influence
The timing of this move coincides with heightened volatility in West Asia (as highlighted in today’s L&T and ECLGS 5.0 updates). Multinational firms are increasingly seeking stable, onshore environments to manage financial risks. By housing treasury operations in GIFT City, Indian companies can:
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Hedge against oil-price-driven currency fluctuations.
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Access cheaper international funding without the traditional “country risk” premiums often associated with domestic Indian operations.
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Consolidate cross-border digital payments under a single, unified regulatory framework.
Summary of Recent GIFT City Regulatory Updates (2026)
| Focus Area | Update Detail |
| Sustainability | Mandatory 5% deployment target for sustainable lending/investments. |
| KYC/AML | Consolidated guidelines issued Jan 2026 to align with global FATF standards. |
| Registration | Unified registration framework allows a single license for multiple intermediary activities. |
| Talent | Regular “Talent Summits” to ensure a steady supply of specialized finance professionals. |
What to Watch: As the Air India board meeting on May 7 approaches, market analysts are watching to see if other major Indian conglomerates utilize GIFT City’s treasury framework to manage the debt and liquidity challenges posed by the ongoing regional supply chain disruptions.
