India’s Outbound Capital via GIFT City Surges 8x as Affluent Investors Globalise Portfolios

India’s outbound investments through GIFT City’s International Financial Services Centre (IFSC) have recorded a sharp rise, reflecting a growing shift among affluent Indian investors toward global diversification. Outbound capital commitments jumped from $170.99 million in September 2023 to $1.43 billion by June 2025, marking an eightfold surge in under two years.

According to the PMS & AIF Special Edition released at the PMS AIF Summit 8.0, this rapid increase is driven by GIFT IFSC’s evolving regulatory environment, flexible fund structuring norms, and globally competitive taxation—all of which have turned it into a natural channel for Indian investors seeking international exposure.

GIFT IFSC Becomes a Preferred Route for Global Allocation

The report notes that investors are increasingly leveraging GIFT IFSC to access offshore investment opportunities through a seamless and tax-efficient mechanism. The combination of regulatory clarity, ease of cross-border capital movement and the redomiciling of global products into GIFT has strengthened its appeal.

Outbound deployments have accelerated not only due to investor appetite but also because more fund managers have secured IFSC approvals, expanding the universe of global products available to Indian investors through this platform.

Wealth managers now anticipate annual outbound deployments through GIFT City to potentially reach $3–4 billion in the coming years, supported by the growing comfort and familiarity investors have developed with this route.

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Rise in Outbound Capital Reflects Changing Investor Behaviour

The report highlights a broader behavioural shift among India’s affluent investors. The population of wealthy individuals—expected to reach 19.4 lakh HNIs and 1.54 lakh UHNIs by 2030—is becoming more structured and professional in its approach to wealth allocation.

With domestic equity markets delivering strong returns over the last decade, investors are now looking to diversify into asset classes and geographies that offer non-correlated and absolute-return opportunities. GIFT City’s IFSC is enabling this shift by providing regulated access to global markets, investment products, and managers.

The rising global orientation among Indian investors signals a maturing wealth ecosystem—one where allocation strategies are no longer limited by geographical boundaries.

GIFT IFSC Emerges as a Two-Way Capital Corridor

While outbound flows have surged eightfold, inbound flows through GIFT IFSC have grown even faster, underscoring its rising importance as a gateway for international capital moving into India.

Inbound commitments climbed from $1.52 billion to $8.37 billion over the same period, reflecting heightened foreign investor interest in India via the GIFT platform.

The strong rise in both inflows and outflows indicates that GIFT City is steadily evolving into a two-way capital corridor, facilitating global investment mobility while reinforcing India’s integration with international financial markets.

Growing Institutional Participation

The report also highlights the increasing institutional role of GIFT IFSC. As global fund managers redomicile products to GIFT and as domestic firms expand operations within the IFSC, investors benefit from a wider range of structured, professionally managed global investment solutions.

The ecosystem’s expansion is further supported by the government’s continued policy focus on making GIFT City a globally competitive financial hub. The combination of regulatory consolidation, competitive taxation, and enabling infrastructure is driving both domestic and international interest.

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