Investments from Indian diaspora in GIFT City funds surpass Rs. 60,998 crore (US$ 7 billion): IFSCA

Investments by the Indian diaspora in Gujarat International Finance Tec-City (GIFT City)-based funds have surpassed Rs. 60,998 crore (US$ 7 billion), according to International Financial Services Centres Authority (IFSCA) chairman Mr. K Rajaraman. In 2024, non-resident Indians (NRIs) and people of Indian origin remitted over Rs. 11,24,106 crore (US$ 129 billion) to India, and he suggested that their global investments likely match this scale. Around 5,000 NRIs have invested nearly Rs. 13,071 crore (US$ 1.5 billion) in banking products and close to Rs. 60,998 crore (US$ 7 billion) in the fund ecosystem. Dedicated facilities to attract diaspora investments into GIFT City were launched in 2024. Rajaraman highlighted that the 19 million-strong diaspora presents a significant fund base. GIFT City offers investment opportunities in foreign exchange terms, distinct from traditional rupee-based options.   

He stated that reforms must be implemented within three to five years to support India’s 2047 goal of becoming a developed nation. The IFSCA is benchmarking against global financial centres. The assets under management for the 30 banks in GIFT City, including 15 international banks, have exceeded Rs. 6,79,692 crore (US$ 78 billion), with Indian corporates borrowing around Rs. 4,35,700 crore (US$ 50 billion). A major Indian corporation recently requested a proposal to borrow Rs. 26,142 crore (US$ 3 billion). IFSCA’s executive director, Mr. Dipesh Shah, noted that GIFT City is exploring aviation and shipping sectors beyond finance, with 33 aircraft leasing firms registered and 198 aviation assets leased. Meanwhile, banking veteran Mr. K V Kamath emphasised the need for strong internal controls in startups. An Institute of Internal Auditors and Protiviti India survey found that two-thirds of chief audit executives view artificial intelligence, bots, and cybersecurity as top risks. At the same time, only 16% feel highly prepared to address emerging threats. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.