Retail participation surges while fund management ecosystem continues to expand
Investments by Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) into funds based in Gujarat International Finance Tec-City (GIFT City) rose sharply during the January–March 2026 quarter, reflecting growing demand for dollar-denominated investment products and protection against currency volatility.
According to the latest bulletin from the International Financial Services Centres Authority (IFSCA), diaspora-linked fund allocations increased 18.6% quarter-on-quarter to US$747.3 million, up from US$630.1 million in the previous quarter. The growth comes amid heightened interest in assets that allow overseas Indians to maintain exposure to India’s economy while reducing foreign exchange risk.
The expansion was accompanied by strong growth across GIFT City’s broader fund management ecosystem. By the end of March 2026, the number of registered Fund Management Entities (FMEs) had increased to 217 from 202 in the previous quarter, while the total number of registered schemes rose to 360 from 327.
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Investor participation also accelerated. The total number of investors across GIFT City fund schemes climbed 42.7% to 9,594 during the quarter
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Retail schemes recorded the strongest growth, with investor numbers surging 177.5% from 1,239 to 3,438, highlighting rising interest among individual investors
Industry observers attribute the trend to the increasing appeal of dollar-based investment products offered through GIFT City’s International Financial Services Centre. These products enable NRIs to invest in India while avoiding direct exposure to fluctuations in the Indian rupee. Tax incentives, simplified regulations and easier repatriation of funds have also strengthened the hub’s attractiveness.
The latest figures underline GIFT City’s growing role as a preferred investment gateway for the global Indian diaspora, with both institutional and retail participation continuing to expand as the financial centre broadens its range of investment offerings.
