Major Global Firms Launch Treasury Hubs in India’s GIFT City
Gautam Adani’s eponymous group, Bharti Airtel, Genpact, and ZF Friedrichshafen are among the prominent companies moving to establish treasury operations in Gujarat International Finance Tec-City (GIFT City). These firms follow the world’s second-largest steelmaker, ArcelorMittal, which has already secured regulatory licenses for two treasury centers. Over the next three months, approximately 17 corporate treasuries are expected to begin operations, marking a significant surge in activity within India’s tax-neutral finance zone.
The shift toward GIFT City is driven by government incentives, including an extended 20-year tax holiday and eased regulations designed to rival financial hubs like Singapore and Dubai. Companies are drawn by access to cheaper funding, lower taxes on remitting dividends, and the ability to hold dollar-denominated assets. Furthermore, a recent regulatory change allows banks in the zone to pay interest on current account balances—a practice typically prohibited for onshore lenders in India.
By onshoring these global financial activities, India aims to maintain greater oversight of capital flows associated with domestic and multinational firms. Experts suggest this trend represents a structural shift in how India-linked corporations manage global capital, allowing for more flexible cash pooling and group-level borrowing. While some firms like ZF Friedrichshafen are still in the exploration phase, the International Financial Services Centre Authority reports that interest from foreign multinationals has exceeded expectations.
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