GIFT City's Fund Boom: $32B Capital Commitments Mark 60x Surge

The firm said the Fund Management Entities (FMEs) increased to 202 currently from 8 in March 2020. Similarly, the number of fund schemes has grown from fewer than 10 to 313, indicating a rapid increase in product offerings and investment strategies.

GIFT City-based funds have raised $17.34 billion, with approximately $17 billion already deployed, highlighting that the ecosystem is not only attracting commitments but also enabling actual investment activity at scale.

The data also points to a strong India focus. Around 85 per cent of the capital deployed through GIFT City is directed towards India, with the remaining 15 per cent allocated to global investments. This underscores GIFT City's role as a gateway for channelling global capital into India, while also enabling investors to access international opportunities from a single jurisdiction.

The growth in the ecosystem has been supported by increasing participation from both domestic and global fund managers across asset classes, including private equity, venture capital, and public market strategies. The rising number of schemes and capital commitments indicates growing investor confidence and diversification of investment platforms operating from GIFT City.

Commenting on the development, 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."

Further, Vikas Khemani, Founder & CIO, Carnelian Asset Management and Advisors Private Limited, said, "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 growth across participants, capital and deployment, GIFT City is emerging as a globally connected fund management hub, supporting both inbound and outbound investment flows.

- ANI