The International Financial Services Centre (IFSC) at GIFT City is poised to broaden its investment portfolio with the introduction of frameworks for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in the coming month. Additionally, regulations governing global commodity trading are anticipated within a timeframe of three to six months. These developments, as shared by officials familiar with the situation, aim to bolster India's resilience against global price fluctuations while enticing trading activities back from offshore markets such as Dubai and Singapore.
The establishment of these new frameworks is crucial for India, a leading global importer of crude oil and metals, as it faces significant exposure to price volatility and geopolitical disturbances. By creating a domestic trading hub, GIFT City seeks to provide a buffer against the risks associated with external supply chains. The IFSC Authority, the regulatory body overseeing GIFT City, has indicated that the groundwork for commodity trading regulations is largely complete, pending only final governmental approvals. One official noted, "Internally, all approvals are in place, and we expect to implement regulations once the government gives the green light."
The government is currently reviewing the proposed frameworks, with inter-ministerial consultations determining the timeline for rollout. An expert committee has already recommended that India promote commodity trading within GIFT City to enhance treasury operations. This integrated approach is expected to create a more robust business environment, allowing various trading activities to be managed efficiently under one roof. The committee’s report, submitted in August 2025, emphasized India’s need to mitigate risks associated with commodity imports, highlighting the limited strategic leverage India holds in international markets compared to other major economies that actively invest in upstream assets.
The new initiatives are not only about risk management; they represent a strategic effort to reclaim the Indian commodity trading market that is currently dominated by foreign jurisdictions. Many Indian corporations have established commodity trading operations in Dubai and Singapore, attracted by favorable regulatory and tax conditions. Policymakers view GIFT City as a viable alternative that can provide similar benefits, ultimately enhancing India’s position in the global trading landscape. As GIFT City prepares for these crucial expansions, the focus remains on creating a resilient and competitive investment environment that addresses both domestic and international trading needs.