In this study, we undertake analysis of ship-borne gravity-magnetic and satellite-derived free-air gravity (FAG) data to derive the crustal structure of Laxmi Ridge and adjacent areas. 2D and 3D crustal modelling suggests that the high resolution FAG low associated with the ridge is due to underplating and that it is of continental nature. From Energy Spectral Analysis, five-depth horizons representing interface between different layers are demarcated that match those derived from 2D models. Magnetic sources from EMAG2 data, various filtered maps and absence of underplating in the EW section suggest that the EW and NW-SE segment of the Laxmi Ridge is divided by the Girnar fracture zone and probably associated with different stages of evolution. From the derived inclination parameters, we infer that the region to the north of Laxmi Ridge, between Laxmi and Gop Basins, is composed of volcanic/basaltic flows having Deccan affinity, which might have been emplaced in an already existing crust. The calculated inclination parameters derived from the best fit 2D model suggests that the rifting in the Gop Basin preceded the emplacement of the volcanics in the region between Laxmi and Gop Basins. The emplacement of volcanic/basaltic flows may be associated with the passage of India over the Reunion hotspot.