Why NRIs Are Turning to GIFT City?
From zero capital gains to multi-currency accounts - here’s what you should know.
India’s GIFT City (Gujarat International Finance Tec-City) is no longer just a buzzword - it’s becoming a global financial hub, tailored for investors who want international-grade access with Indian opportunities.
What is GIFT City?
GIFT City is India’s first International Financial Services Centre (IFSC), set up to attract global capital and financial institutions. It operates under a separate regulatory regime, overseen by the International Financial Services Centres Authority (IFSCA). Think of it as India’s “offshore-onshore hub” - offering international standards while being based in India.
How GIFT City Compares Globally
Like Singapore: Provides an efficient gateway to Asian investments.
Like Dubai DIFC: Offers tax-neutral status and global investor access.
But Uniquely Indian: Focused on channeling global capital into India’s growth stor
For NRIs, it combines regulatory clarity and tax advantages like no other platform in India.
Here’s how you can make the most of it 👇
Ways NRIs Can Invest Through GIFT City
Alternative Investment Funds (AIFs) & Portfolio Management Services (PMS)
NRIs can access exclusive AIFs and PMS designed for global investors.
Exposure to international equities, debt, real estate, bullion, and more.
Minimum investment for AIFs: Typically USD 150,000, with a 3-year lock-in.
Tax Advantage: Potential exemptions on capital gains and other income.
Invest in Gift City Through iNRI
IFSC Banking Units (IBUs)
Global Savings Accounts: Open multi-currency accounts (USD, GBP, EUR, CAD, AED, AUD, SGD, HKD, etc.) to park surplus funds and earn competitive interest rates.
Loans: Access financing against FCNR/NRE deposits or international branch holdings.
Direct Investment in Capital Markets
Through IFSC exchanges like NSE IX, NRIs can directly invest in:
Indian equities, derivatives, and debt instruments.
International stocks (via unsponsored depository receipts).
Bullion through the India International Bullion Exchange (IIBX).
How GIFT City Eases Investing in India?
NRIs often face roadblocks in investing directly in India - from tax inefficiencies to regulatory hurdles. GIFT City simplifies this by offering:
Tax Benefits
No capital gains tax on certain categories of securities (if held for a specified period).
No dividend distribution tax (DDT) on companies operating in IFSC.
Tax holidays for IFSC-based units (100% for 10 years out of 15).
Global Accessibility
Investments are made in foreign currency (USD, GBP, etc.)
No restriction on repatriation - NRIs can move funds in and out freely.
Simplified Regulations
NRIs can invest via IFSC-registered funds, portfolio management services (PMS), and fintech platforms without typical onshore hurdles.
Regulatory clarity under IFSCA makes compliance easier than traditional NRI routes.
For NRIs who want the best of both worlds - India’s growth story with global-grade safeguards - GIFT City is the bridge.