The Madrid-Gandhinagar economic corridor is experiencing a historic spurt in 2026. With this year marking the 70-year bilateral celebration between India and Spain during the so-called India-Spain Dual Year 2026, Spanish conglomerates are not just looking to do business with India but to build a long-term financial base in the GIFT City of India.
This step of change is influenced by a new wave of foreign direct investment (FDI) from Spain to India, incentives, and a special Fast-Track Mechanism aimed at launching Spain as the main springboard for global expansion in India.
Who: The New Spanish-Indian Financial Era
The Spanish-Indian relationship has developed beyond mere importation and exportation relations to a strong strategic alliance. Spain has become the 16 th largest investor in India, following bilateral trade of close to USD 10 billion.
The introduction of Spanish reinsurance giants and renewable energy giants into the GIFT City IFSC is a landmark in 2026. First in line is Mapfre Re, the in-house global reinsurer of the Spanish MAPFRE Group, which formally requested authorization to be registered as an International Insurance Office (IIO) in January 2026.
How: The Mechanisms that Drive the Shift
The three strong Green Lanes used by Spanish companies to penetrate GIFT City are:
- Fast-Track Mechanism (FTM): This mechanism is operationalized in the Department of Promotion of Industry and Internal Trade (DPIIT), and it provides a special mechanism through which Spanish investors can clear regulatory barriers.
- Consolidated AML/KYC Guidelines: The IFSCA has released consolidated guidelines in place of its former guidelines as of January 02, 2026, offering more clarity to the European firms.
This involves the use of the Video-based Customer Identification Process (V-CIP), where Spanish directors can onboard at a distance and still meet international standards. - The Dual Year 2026 Initiative: This government project focuses on collaboration in the field of Artificial Intelligence (AI), tourism, and mutual investments, which would form a bridge of talents between the two countries.
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IFSCA-C →Why Numerical Benefits and Competitive Advantages
To a Spanish CEO, the benefits of foreign investment at GIFT City are mathematically better than onshore hubs:
- Tax Efficiency: Spanish entities operating in the IFSC are given 10 years tax exemption out of 15 or 100 percent.
- Declining MAT: A lower Minimum Alternate Tax (MAT) of 9% is charged on units of income in convertible foreign exchange.
- Currency Neutrality: The ability to redeem investments and hold investments in USD or EUR eliminates the expense of converting money to INR.
- Capital Gains Relief: Relief on the capital gains tax on transfers made on the recognised stock exchanges within the IFSC.
Spanish Companies Active in India’s Growth Corridor (2026)
While over 230 Spanish companies operate in India, a new elite group is strategically focusing on GIFT City and high-tech manufacturing, aligning with India’s next phase of industrial and financial growth.
| Company | Sector | GIFT City / Strategic Role |
|---|---|---|
| Mapfre Re | Reinsurance | Applied for IIO registration in January 2026 to access India’s offshore insurance market via IFSC. |
| Airbus Defence & Space | Aerospace | Anchor participant in the $2.5 bn C-295 aircraft “Make in India” defence manufacturing programme. |
| Tata Advanced Systems | Defence JV | Joint venture partner with Airbus for India’s first private-sector defence aircraft factory. |
| Ayesa | Infrastructure | Lead engineering and project-management consultant for major Indian Metro and urban infrastructure projects. |
| Acciona Energía | Renewables | Committed to large-scale solar and clean-tech investments aligned with India’s net-zero and energy-transition goals. |
Strategic Numerical Growth (2025-2026)
- FDI Stock: Spanish FDI in India had a cumulative figure of USD 4.2 billion by mid-2024, and it is expected to be 15 percent higher by 2026.
- IFSC Assets: Majority of the large infrastructure projects in the Spanish firms will have the liquidity they require through the USD 93 billion and above total banking assets in GIFT City by August 2025.
Summary for Investors
The policy of foreign direct investment of 2026 has clarified it: GIFT City is the Safe Haven of Spanish capital. This is the best launchpad, whether you are an International Financial Service Centre consultant working with a Madrid startup or a Gift City Advisor working with a large corporation, since the synergy of the Fast-Track Mechanism and the 10-year tax holiday makes it the ultimate launchpad.