Fund commitments at GIFT City jump 60-fold in 5 years

AHMEDABAD: Gujarat International Finance-Tec City (GIFT City) has witnessed rapid growth in its fund management ecosystem over the past five years, with capital commitments rising sharply from less than $0.5 billion in March 2020 to $32.13 billion by Dec 2025, according to official data.

Experts said the nearly 60-fold increase reflects growing use of GIFT City for both India-focused and global investment strategies.

The number of Fund Management Entities (FMEs) operating in the International Financial Services Centre (IFSC) has also increased significantly — from just 8 in March 2020 to 202 by March 2025. During the same period, the number of fund schemes rose from fewer than 10 to 313.

Officials noted that companies are increasingly focusing on innovative investment products catering to both domestic and international investors.

A Balasubramanian, MD and CEO of Aditya Birla Sun Life AMC Ltd, said GIFT IFSC has helped the company offer specialised investment solutions and better serve global and NRI investors, while also enabling domestic investors to access overseas opportunities.

Data showed that funds based in GIFT City have raised $17.34 billion so far, of which around $17 billion has already been deployed. Nearly 85% of this capital has been invested in India, while the remaining 15% has gone into global markets.

Market experts attributed the growth to rising participation from both domestic and global fund managers across asset classes such as private equity, venture capital and public markets.

Vikas Khemani, founder and CIO of Carnelian Asset Management and Advisors Pvt Ltd, said, "Our offshore inbound fund based out of GIFT City has been operating seamlessly. We see GIFT City as an already established international financial centre that is witnessing growing participation from both global and domestic players."