Indian diaspora’s investments in GIFT City funds cross US$ 7 billion

Investments by the Indian diaspora in Gujarat International Finance Tech City-based funds have surpassed US$ 7 billion. In 2024, dedicated facilities were introduced to attract diaspora funds to GIFT City in Gujarat. With investment opportunities in foreign exchange terms, the city’s banks have accumulated assets under management exceeding US$ 78 billion.

Investments by the Indian diaspora in GIFT City-based funds have exceeded US$ 7 billion, according to International Financial Services Centres Authority (IFSCA) Chairman K Rajaraman. In 2024, NRIs and people of Indian origin remitted over US$ 129 billion to India, with significant investments in global markets. 

To attract diaspora funds, dedicated facilities were launched in GIFT City, Gujarat, in 2024. Mr Rajaraman emphasized that the 19 million-strong Indian diaspora represents a major financial resource. He highlighted the need for reforms over the next 3-5 years to support India’s vision of becoming a developed nation by 2047. 

Speaking at an event hosted by the Institute of Internal Auditors, he stated,”...as of now, about 5,000 NRIs have invested about nearly a billion and a half in various banking products. They have also invested close to US$ 7 billion in the fund ecosystem.” 

The assets under management (AUM) for 30 banks in GIFT City, including 15 international banks, have crossed US$ 78 billion, with Indian corporates borrowing US$ 50 billion. A major Indian corporate recently sought to borrow US$ 3 billion. Beyond finance, GIFT City is expanding into aviation and shipping. IFSCA executive director Dipesh Shah noted that 33 aircraft leasing firms have been registered, with 198 aviation asset leases completed, and ship leasing is gaining traction.

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