Why India’s global businesses need global financial infrastructure

India’s software exports crossed $204 billion last year, while total services exports exceeded $340 billion. Indian companies have become successful at selling products and services across the world. But many of them still haven’t built financial systems that match their global operations.

Take the example of a mid-sized SaaS company or a direct-to-consumer (D2C) brand with a growing international presence. It may earn revenue from customers in the US, pay suppliers in Southeast Asia, work with contractors in Europe, and manage logistics through the Middle East. While the business operates globally, its finance team often relies on a domestic bank account, spreadsheets to track foreign exchange (FX), and hopes that international SWIFT transfers arrive on time.

The challenge isn’t a lack of technology or software. The real issue lies in the financial infrastructure that supports these businesses.

The old way of managing global finances

Many Indian companies expanding overseas solved this problem by setting up legal entities in places such as Singapore, Delaware or Dubai. They did this mainly because these locations offered better banking services, including multi-currency accounts, easier treasury management and faster international payments.

As a result, Indian businesses ended up managing their global finances outside India.

This approach worked when international business made up only a small part of their revenue. But as overseas operations became central to growth, the costs started adding up. Foreign exchange markups, payment delays, reconciliation efforts and compliance requirements all increased, even though these costs were often hidden.

How things are changing

Over the past few years, GIFT City has steadily grown into a major financial hub. Banking assets have increased from $14 billion in 2020 to more than $111 billion today. Global banks, regulated financial institutions and insurers have all established a presence there.

However, banking infrastructure alone isn’t enough.

The biggest change has been the arrival of regulated fintech companies within GIFT City. These firms connect directly with IFSC banking systems and provide businesses with digital tools for collections, foreign exchange management, treasury operations and international payments through easy-to-use dashboards and APIs.

This means businesses can automatically receive payments, manage balances in multiple currencies, convert foreign exchange based on predefined rules and make global payouts without depending on manual SWIFT processes.

A practical solution for growing businesses

Today, companies can collect international payments directly into GIFT IFSC accounts, hold funds in different currencies and pay vendors through SWIFT or local payment networks. They can also manage escrow services, foreign exchange and cross-border payouts from one regulated platform, without opening entities in Singapore or Delaware.

This is becoming increasingly important not just for large multinational companies but also for Indian SaaS firms crossing $10 million in annual recurring revenue (ARR), D2C brands earning a significant share of revenue from overseas markets and mid-sized services exporters. Many of these businesses face global financial complexity long before they can afford a dedicated treasury team.

Why it matters

The companies that built India’s export success often did so despite the country’s financial infrastructure. The next generation of global businesses will expect better systems.

Finance teams today face a choice: continue relying on workarounds designed for domestic banking or adopt infrastructure built for global operations.

For the first time, that option is available within India. Platforms such as Decentro, operating through the GIFT IFSC framework, are helping businesses manage cross-border finances without the need to set up overseas entities or build large treasury teams.

The companies that adopt these systems early could gain a significant operational advantage, while others may continue managing global businesses through financial infrastructure that was never designed for international scale.

The author is Senior Director, Decentro.

Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express