IFSCA Strengthens Trade Finance Ecosystem at IFSC

  • Blog|News|FEMA & Banking|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 2 September, 2025

Trade Finance at GIFT IFSC

Press Release Dated 29.08.2025

1. Importance of Trade Finance in Global and Indian Context

Trade finance supports nearly 80% of global trade and plays a crucial role in enabling India’s export growth. With the ambitious national target of achieving USD 2 trillion in exports by 2030, access to credit, efficient risk mitigation, and supportive financial services becomes critical. Trade finance ensures liquidity in cross-border transactions and minimizes risks for both exporters and importers, thereby acting as a backbone for international trade.

2. Role of IFSCA in Strengthening Trade Finance

As the unified regulator for International Financial Services Centres (IFSCs), IFSCA has taken significant steps to position GIFT IFSC as a leading hub for global trade finance. Its enabling measures focus on providing exporters and traders with innovative financial solutions, smoother regulatory oversight, and access to global markets. By fostering a robust ecosystem, IFSCA is creating a competitive advantage for Indian businesses in the international arena.

3. Trade Finance Solutions at GIFT IFSC

IFSC Banking Units are offering trade credit, factoring, forfaiting, and advanced risk management instruments to support exporters and importers. Additionally, Finance Companies operating under a dedicated regulatory framework are providing lending, factoring, and forfaiting services. International Trade Financing Services (ITFS) platforms are also playing a pivotal role by facilitating digital supply chain finance, bill discounting, and transparent price discovery. These platforms connect Indian exporters with global capital pools, enhancing financial inclusion and access to low-cost funding.

4. Expanding Global Cooperation and Sustainability Initiatives

Beyond financial products, IFSCA is also strengthening cooperation with international networks to integrate Indian trade finance with global systems. The regulator is promoting sustainable trade finance by aligning with ESG (Environmental, Social, and Governance) targets and enabling exporters to raise capital through bond listings at IFSC. Further, exporters are being supported through trade credit insurance and comprehensive risk mitigation frameworks, making GIFT IFSC a future-ready hub for global trade finance.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied