In a major financial policy move on 7 October 2025, India launched a foreign currency settlement system through GIFT City (Gujarat International Finance Tec-City), positioning it as a dynamic centre for international finance and FX settlement. Standard Chartered India has been selected to handle U.S. dollar clearances under this new system.
This allows cross-border transactions to be settled directly via GIFT City, reducing intermediaries and bringing efficiency in forex operations. The move is aimed at attracting foreign capital flows, financial services firms, and international investors to use GIFT City as a hub.
From an economic perspective, this is significant. It could reduce costs, improve settlement times, and increase India’s financial attractiveness globally. As India seeks to deepen its integration with global capital markets, a robust FX settlement infrastructure is a foundational element.
However, competition will be stiff. Cities like Singapore, Dubai, London have decades of incumbency in global finance. India must ensure regulatory clarity, robust infrastructure, tax advantages, and reputation to lure participants. Seamless connection with banks, compliance standards, and trust in settlement finality are vital.
In sum, GIFT City’s FX settlement system is a strategic bet by India on becoming a global financial hub. If it delivers on efficiency, reliability, and accessibility, it may shift capital flows and reshape India’s financial architecture.
