The India International Financial Services Centres Authority (IFSCA) published a press release outlining how GIFT IFSC is being positioned as a hub for global trade finance, summarising the regulatory framework and available channels for trade finance and related risk mitigation. The update also provides activity metrics across IFSC Banking Units, finance companies and International Trade Financing Services platforms. Within the IFSC framework, Indian and foreign banks can operate IFSC Banking Units (IBUs) to provide trade credit, factoring and forfaiting, while also offering hedging instruments such as foreign exchange and interest rate derivatives and supporting syndicated lending and multicurrency trade loans. Outstanding trade finance disbursed by IBUs in GIFT IFSC stood at USD 13.79 billion at end-June 2025. Beyond banks, finance companies registered under the IFSCA (Finance Company) Regulations, 2021 and/or the Factoring Regulation Act, 2011 can provide trade finance products and services, supported by the IFSCA (Registration of Factors and Registration of Assignment of Receivables) Regulations, 2024; four such finance companies (including a subsidiary of EXIM Bank India) are registered, with volumes of approximately USD 9.38 million in FY 2024-25. The release also notes four International Trade Financing Services (ITFS) operators in IFSC, which are fully digital platforms for products including factoring, forfaiting, supply chain finance and bill discounting; these platforms can connect with other electronic platforms inside and outside IFSC and undertake secondary market transactions, with FY 2024-25 volumes of USD 29.79 million. On sustainability, IFSCA has mandated lending institutions in IFSC to meet a target of 5% of their prior financial year loan outstanding, which can be met through financing sustainable trade finance transactions. The note also highlights capital-raising through listing foreign currency and masala bonds on IFSC stock exchanges (including a 9% withholding tax rate on interest income for non-resident investors subscribing to certain listed bonds) and the availability of trade credit insurance through IFSC Insurance Offices covering export-related risks. Internationally, IFSCA is at an advanced stage of collaborating with Factors Chain International to integrate with international factoring networks.

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