Billion-Dollar Boost: Indian Diaspora Fuels GIFT City Funds

Investments by the Indian diaspora in GIFT City-based funds surpassed USD 7 billion, says the International Financial Services Centres Authority. With remittances totaling over USD 129 billion, NRIs hold significant investments globally. GIFT City offers diaspora an alternative investment in foreign exchange territory, aiming for future economic growth.

Investments by the Indian diaspora in funds based in Gujarat's GIFT City have exceeded USD 7 billion, according to a statement from the International Financial Services Centres Authority (IFSCA). The announcement came as part of broader remarks by financial regulator chairman K Rajaraman, noting remittances over USD 129 billion by non-resident Indians (NRIs) and people of Indian origin in 2024.

As the diaspora increasingly channels funds back to their roots, GIFT City presents an appealing platform by offering investment opportunities in foreign exchange terms, distinct from traditional rupee-based investments. With over 19 million members, the diaspora represents a significant source of capital for India, explained Rajaraman at a recent event hosted by the Institute of Internal Auditors.

Beyond finance, GIFT City is expanding into sectors like aviation and shipping, with 33 aircraft leasing firms and new avenues in ship leasing. This sector expansion underscores GIFT City's pivotal role in India's financial and economic landscape, as it drives reforms essential to the country's development strategy towards becoming a developed nation by 2047.

(With inputs from agencies.)