Budget 2026: Deloitte urges parity rules and compliance clarity to scale IFSC GIFT City as global BFSI hub

Push to make GIFT City a bigger offshore-style financial base

With India’s Union Budget 2026 approaching, Deloitte has pitched a set of regulatory and tax recommendations designed to help the International Financial Services Centre (IFSC) at GIFT City scale up as a global hub for banking, financial services and insurance (BFSI). The advisory firm’s suggestions focus on smoothing frictions that, in its view, can slow the onboarding of international participants and limit the size of the ecosystem.

The central thrust of Deloitte’s note is the need for parity rules among players, removal of tax asymmetries and clearer compliance expectations. As more global banks, broker-dealers and capital-market firms evaluate India as a base for cross-border financial activity, such measures could determine how quickly GIFT City becomes a truly full-service centre capable of competing with established international financial hubs.

GIFT City has been positioned by the government as a strategic economic project aimed at attracting global capital flows, encouraging sophisticated financial products and bringing international-grade market infrastructure into India. Over the last few years, policymakers have used targeted rule changes to expand the range of permitted activities, from fund management and reinsurance to capital markets and lending structures.

Why the Budget matters for IFSC momentum

Budget announcements can shape the incentives and compliance framework in a single stroke, especially when they clarify tax treatment and resolve operational ambiguity. Deloitte’s pitch suggests that, while interest in GIFT City is rising, a more level playing field and reduced friction are essential to move from early adoption to large-scale migration of business lines.

The broader competitive question is whether GIFT City can become the preferred platform for international-facing rupee and foreign-currency business, rather than only a niche option. Achieving that would require predictable rules that work across products, clearer interpretation of obligations and a policy environment that supports long-term planning for global financial institutions.

Budget-season recommendations for GIFT City increasingly focus less on headline incentives and more on “how it works day-to-day”—tax symmetry, clarity and predictability.

• Recommendation source: Deloitte
• Policy focus: parity rules, removal of tax asymmetries, compliance clarity
• Goal: scale IFSC GIFT City as a global BFSI hub
• Context: rising interest from global banks and market participants ahead of Budget 2026