Companies Including Adani, Arcelor Establish Treasury Operations in India's GIFT City: Report

India's GIFT City Attracts Major Corporations for Treasury Operations

Gautam Adani's eponymous firm, Bharti Airtel, Genpact, and ZF Friedrichshafen are among the companies setting up treasury operations in India's tax-neutral finance zone, Gujarat International Finance Tec-City, or GIFT City. This move is expected to rival Singapore and Dubai as a financial centre. According to public filings, ArcelorMittal, the world's second-largest steelmaker, has secured regulatory licenses to set up two treasury centres in GIFT City.

The Modi government is promoting GIFT City as a financial centre, and in February, the government extended the tax holiday for firms operating there to 20 years. Regulations have also been eased to attract more businesses. As a result, 17 corporate treasuries are likely to begin operations in GIFT City over the next three months.

Global Treasury Centres

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Corporate treasury operations have traditionally been housed in places like Singapore and the Netherlands. These hubs, known as global treasury centres, manage cash, funding, liquidity, foreign exchange, and financial risks for multinational firms. The key benefits of setting up treasury centres in GIFT City include access to cheaper funding, lower taxes on remitting dividends and excess cash to overseas units, and the ability to hold assets in dollars as the rupee weakens.

Onshoring Activity

By onshoring this activity to GIFT City, India hopes to retain control and oversight of global financial flows associated with its companies. This move is seen as a strategic step by the government to attract foreign investment and create a financial hub that can rival other major centres.

Regulatory Push

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Activity has picked up sharply since January, with seven companies securing regulatory licences and another 17 at different stages of approval. Much of the recent surge is attributable to regulatory changes from April 2025. The interest from foreign multinational companies has been beyond expectations, according to a senior regulatory official at GIFT City.

Comparison of Regulatory Changes

Key Developments

A key change that was made allows banks to pay interest on current account balances, a practice not allowed by the Reserve Bank of India for onshore lenders. Just one foreign bank has started this so far. ArcelorMittal plans to undertake cash pooling activities for its India entities via GIFT City, similar to what it does via its treasury centre in Paris.