Policies · BFSI
The Union Government has formally classified commodity trading as a financial service under the IFSCA Act, opening the door for GIFT IFSC units to participate in global commodity markets.
✦ AI SUMMARY 30-second read
- Commodity trading notified as a financial service under the IFSCA Act, effective once IFSCA issues an operational framework.
- Units in GIFT IFSC will be eligible for a 20-year tax holiday and freedom from RBI regulations and FEMA restrictions on such trades.
- The definition covers cross-border and within-foreign-country shipments, with or without touching Indian ports.
Why it matters: The move positions GIFT IFSC to compete directly with established global commodity trading jurisdictions, with an associated boost to shipping demand.
This summary was generated by AI. Editors may review and update it.
Document details
| Document type | Rules & Regulation |
|---|---|
| Issued by | PFRDA / NPCI / IFSCA |
| Region | India |
| Published | 14 November 2026 |
The Union Government has notified commodity trading as a financial service under the International Financial Services Centres Authority Act, according to a gazette notification issued by the Department of Economic Affairs, Ministry of Finance, on November 13.
The notification means that once IFSCA releases an operational framework, units located in GIFT IFSC will be permitted to engage in global commodity trading, free from RBI regulations and FEMA restrictions that currently apply to such activity.
Commodity trading entities operating from GIFT IFSC will also be eligible for a 20-year tax holiday, placing them on a comparable footing with participants in other global commodity trading jurisdictions.
What the document says
The gazette notification defines commodity trading as the trading of a commodity under a commodity trading contract by a unit in IFSC GIFT City, involving shipment from one country to another or within a foreign country, with or without touching Indian ports.
All such activity will remain subject to the applicable laws in force in India, the Department of Economic Affairs specified.
The notification was issued on November 13 and reported on November 14.
Who is affected
Units registered in GIFT IFSC that wish to engage in cross-border or inter-country commodity trades are the primary beneficiaries once IFSCA finalises its framework.
The notification also anticipates an increase in shipping demand within the GIFT IFSC ecosystem, noting that a shipping framework is already operational there.
What happens next
Commodity trading activity can commence only after IFSCA notifies the specific framework governing it; the government notification is a prerequisite step, not the operational trigger.
Until that framework is in place, the classification remains preparatory, though it establishes the legal basis for IFSCA to proceed with rulemaking.
