- From $0.5 Billion to $32 Billion: A Financial Transformation Story Unfolds
- Fund Managers Flood In as IFSC Turns Magnet for Global Capital
- India Remains Core Focus with 85% Capital Deployment
- Investment Engine Gains Speed with $17 Billion Already Deployed
- GIFT City Emerges as Gateway Linking Domestic and Global Markets
NE BUSINESS BUREAU
GANDHINAGAR, APR 9
Gujarat’s flagship financial hub, GIFT City, has scripted a remarkable growth story, with its fund management ecosystem witnessing an explosive rise in capital commitments—from less than $0.5 billion in March 2020 to a staggering $32.13 billion by December 2025, marking an extraordinary nearly 60-fold surge.
The rapid ascent underscores the growing preference among global and domestic investors to use GIFT City as a strategic base for structuring both India-centric and international investment portfolios.
Equally striking is the surge in participation. The number of Fund Management Entities (FMEs) operating within GIFT City has jumped from just 8 in March 2020 to 202 currently, reflecting a 25-fold increase. Parallelly, fund schemes have expanded from fewer than 10 to 313, showcasing a sharp diversification in investment offerings and strategies.
The ecosystem is not merely attracting commitments—it is actively deploying capital. Of the $17.34 billion raised, nearly $17 billion has already been deployed, signalling strong execution momentum and investor confidence.
A significant portion of this capital—around 85 per cent—is being channelled into India, while the remaining 15 per cent is allocated to global markets. This dual focus positions GIFT City as a critical conduit for global capital inflows into India, while simultaneously enabling outbound investment opportunities.
The growth trajectory has been fuelled by increasing participation from a wide spectrum of fund managers—spanning private equity, venture capital, and public market strategies—along with a supportive regulatory framework and evolving infrastructure.
Commenting on the milestone, A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd., said, “GIFT City’s evolution into a vibrant fund management ecosystem marks a significant milestone in India’s financial services journey. For ABSLAMC, GIFT IFSC has provided a strong gateway to launch differentiated investment solutions, serve global and NRI investors more effectively, and facilitate domestic investors’ access to overseas opportunities. We remain committed to building scale in offshore assets under management and expanding our global investment capabilities.”
Echoing similar optimism, Vikas Khemani, Founder & CIO, Carnelian Asset Management and Advisors Private Limited, stated, “Our offshore inbound fund based out of GIFT City has been operating seamlessly. We see GIFT City not just as a gateway to India, but as an already established international financial centre that is witnessing growing participation from both global and domestic players. With rapidly evolving infrastructure and a progressive regulatory environment, GIFT City continues to strengthen its position as a premier global financial hub.”
With sustained momentum across capital inflows, participation, and deployment, GIFT City is fast consolidating its position as a globally connected fund management powerhouse, driving both inbound and outbound investment flows.
