Taiwanese lender CTBC Bank has inaugurated a new branch at GIFT City in Gandhinagar, Gujarat, marking the first time a bank from Taiwan has established a presence in India’s International Financial Services Centre (IFSC). The expansion builds on the bank’s 30-year history of operations in India, where it already runs branches in New Delhi and Chennai. This establishment is expected to significantly boost bilateral trade and investment flows, particularly in high-tech manufacturing and supply chain integration between India and Taiwan.
Expanding Taiwanese Banking Footprint in India
CTBC Bank, originally established on March 14, 1966, as the China Securities and Investment Corporation, is one of Taiwan’s largest private financial institutions. Headquartered in the Nangang District of Taipei, Taiwan, the bank operates under the parent company CTBC Financial Holding Co. Ltd. In India, the bank has maintained a continuous operational presence for 30 years, distinguishing itself as the only Taiwanese financial institution with direct branch operations in the country.
Before setting up its branch in Gujarat, the bank served its corporate clients through two domestic offices. These are located in New Delhi (at Aerocity) and Chennai (at Kattupakkam). From these branches, the bank has historically provided wholesale lending, trade finance, corporate banking, and treasury solutions to Indian businesses and Taiwanese firms operating in India.
Understanding the GIFT City IFSC Advantage
The Gujarat International Finance Tec-City (GIFT City), located in Gandhinagar, Gujarat, hosts India’s premier International Financial Services Centre (IFSC). Setting up an IFSC Banking Unit (IBU) offers distinct operational benefits compared to domestic banking. Under India’s financial rules, an IBU is treated as a person resident outside India under the Foreign Exchange Management Act, 1999 (FEMA). This status allows the unit to conduct foreign currency transactions with minimal exchange control restrictions.
By operating in the IFSC, the bank can provide offshore banking services, including foreign currency loans, external commercial borrowings, and structured trade finance. These services are particularly beneficial for multinational corporations that require financing in global currencies like the US dollar. Additionally, entities operating in the IFSC enjoy tax incentives, such as exemptions from the Goods and Services Tax (GST) and a ten-year corporate tax holiday, making international transactions more cost-effective.
Strategic Implications for India-Taiwan Economic Ties
Bilateral economic cooperation between India and Taiwan has grown steadily, driven by trade and supply chain partnerships. In 2025, the total trade volume between the two partners reached a historic high of USD 12.514 billion, representing an 17.95% growth compared to 2024. Under this partnership, India has become Taiwan’s 15th-largest trading partner and its 11th-largest export market.
The table below details the trade distribution and primary commodities exchanged between India and Taiwan in 2025:
| Trade Direction | Value in 2025 (USD) | Key Commodities |
|---|---|---|
| Taiwan’s exports to India | 9.212 billion | Electronic integrated circuits, plastics, organic chemicals, electrical machinery |
| India’s exports to Taiwan | 3.302 billion | Mineral fuels, aluminum, iron, steel, organic chemicals |
| Total bilateral trade | 12.514 billion | Electronics, chemicals, metals, and fuel products |
More than 300 Taiwanese companies operate in India, concentrating their investments in electronics manufacturing, technology infrastructure, and semiconductor development. Establishments like Foxconn and other technology firms require significant capital for their manufacturing facilities. The presence of CTBC Bank at the GIFT City IFSC allows these companies to access direct trade financing, currency hedging, and credit facilities, smoothing the inflow of Taiwanese capital into India’s industrial corridors.
Regulatory Framework of IFSC Banking Units
The establishment and operation of banking units in GIFT City are governed by a distinct regulatory structure. The International Financial Services Centres Authority (IFSCA) serves as the unified regulator for all financial services within the IFSC. Established under the International Financial Services Centres Authority Act, 2019, the regulator became operational in October 2020 with its headquarters in GIFT City, Gandhinagar. Prior to its establishment, financial services in the zone were regulated by separate domestic bodies, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
Under the unified framework, banking activities are governed by the IFSCA (Banking) Regulations, 2020. These rules specify the licensing requirements, permissible activities, and compliance frameworks for setting up an IBU. Although the IFSCA is the primary authority, banking units must still coordinate with the Reserve Bank of India to ensure alignment with national monetary stability guidelines and foreign exchange management policies.
Key Takeaways
- CTBC Bank has become the first Taiwanese lender to establish a presence in India’s International Financial Services Centre (IFSC) at GIFT City in Gandhinagar, Gujarat.
- The bank has operated in India for 30 years, maintaining existing domestic branches in New Delhi and Chennai.
- Bilateral trade between India and Taiwan reached a record high of USD 12.514 billion in 2025, representing an 17.95% growth from 2024.
- In 2025, India was Taiwan’s 15th-largest trading partner and its 11th-largest export market.
- The International Financial Services Centres Authority (IFSCA) is the unified financial services regulator established in October 2020 under the IFSCA Act, 2019, with headquarters in GIFT City.
- An IFSC Banking Unit (IBU) operates as a person resident outside India under the Foreign Exchange Management Act, 1999 (FEMA), allowing it to transact in foreign currencies.
