GIFT City's Fund Management Ecosystem Experiences Explosive Growth
Ahmedabad: The Gujarat International Finance-Tec City (GIFT City) has demonstrated remarkable expansion in its fund management sector over the past five years, with capital commitments skyrocketing from less than $0.5 billion in March 2020 to an impressive $32.13 billion by December 2025, as per official data. This substantial increase highlights the growing utilization of GIFT City for diverse investment strategies, both within India and on a global scale.
Rapid Increase in Fund Management Entities and Schemes
The number of Fund Management Entities (FMEs) operating within the International Financial Services Centre (IFSC) at GIFT City has seen a dramatic rise, escalating from merely 8 in March 2020 to 202 by March 2025. Concurrently, the count of fund schemes has surged from fewer than 10 to 313 during the same timeframe. Officials have emphasized that companies are increasingly concentrating on developing innovative investment products designed to cater to both domestic and international investors.
Expert Insights on GIFT City's Strategic Advantages
A Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC Ltd, commented that GIFT IFSC has facilitated the company in offering specialized investment solutions, enhancing services for global and Non-Resident Indian (NRI) investors, while also enabling domestic investors to access overseas opportunities. Data reveals that funds based in GIFT City have successfully raised $17.34 billion to date, with approximately $17 billion already deployed. Notably, nearly 85% of this capital has been invested within India, while the remaining 15% has been allocated to global markets.
Driving Factors Behind the Growth Surge
Market experts attribute this growth to heightened participation from both domestic and global fund managers across various asset classes, including private equity, venture capital, and public markets. Vikas Khemani, founder and Chief Investment Officer of Carnelian Asset Management and Advisors Pvt Ltd, stated, "Our offshore inbound fund based out of GIFT City has been operating seamlessly. We perceive GIFT City as an already established international financial centre that is witnessing growing engagement from both global and domestic players."
The expansion underscores GIFT City's evolving role as a pivotal hub for financial services, attracting significant capital inflows and fostering a robust ecosystem for investment management. This trend is expected to continue as more entities recognize the benefits of operating within this specialized zone.
