Transforming Financial Services in IFSC

OVERVIEW

The Indian diaspora has significantly increased its investments in Gujarat International Finance Tec-City (GIFT City), with total fund investments exceeding ₹60,998 crore (US$ 7 billion), as reported by IFSCA Chairman Mr. K Rajaraman. This milestone underscores the growing engagement of Non-Resident Indians (NRIs) and people of Indian origin in India’s leading international financial hub.

Strong NRI Investment Flow

In 2024, NRIs and people of Indian origin remitted over ₹11,24,106 crore (US$ 129 billion) to India, showcasing their significant economic influence.

According to IFSCA data, around 5,000 NRIs have invested approximately ₹13,071 crore (US$ 1.5 billion) in banking products and ₹60,998 crore (US$ 7 billion) in GIFT City’s fund ecosystem

Key Features of GIFT City Investments

Foreign Currency Investment Options: Unlike traditional rupee-based investments, GIFT City offers foreign exchange-based investment opportunities, making it more appealing to the global Indian community.

Dedicated NRI Investment Facilities: Introduced in 2024, these initiatives enable seamless participation in India’s financial markets.

India’s Financial Reforms and Future Vision

Upcoming Financial Reforms: Mr. Rajaraman emphasized the need for major financial reforms in the next 3-5 years to align with India’s vision of becoming a developed nation by 2047.

Global Benchmarking: The IFSCA is positioning GIFT City alongside other top international financial centers to attract global capital

GIFT City’s Expanding Banking and Financial Sector

GIFT City’s banking ecosystem continues to expand, with 30 banks, including 15 international banks, actively operating, assets under management (AUM) exceeding ₹6,79,692 crore (US$ 78 billion), and Indian corporates securing nearly ₹4,35,700 crore (US$ 50 billion) through various financial instruments.

Additionally, a major Indian corporation has proposed a ₹26,142 crore (US$ 3 billion) loan, highlighting the increasing reliance on GIFT City’s banking services.

conclusion

The ₹60,998 crore (US$ 7 billion) investment from the Indian diaspora signals strong confidence in India’s financial growth. With continued reforms, increasing foreign investments, and expansions into non-financial sectors, GIFT City is poised to become a premier global financial hub.