GIFT City (Gujarat International Finance Tec-City) is India’s first operational smart city and International Financial Services Centre (IFSC). It was conceptualised by the Government of India and the Government of Gujarat to create a world-class financial hub.
Envisioned to rival global financial centres like Singapore, Dubai, and London, GIFT City offers state-of-the-art infrastructure, relaxed regulations, tax-friendly policies, and a futuristic ecosystem tailored for international investors, especially Non-Resident Indians (NRIs) who wish to participate in India’s economic growth with global efficiency.
Situated between Ahmedabad and Gandhinagar in Gujarat, GIFT City serves as a unified platform offering services across banking, capital markets, insurance, asset management, fintech, and international trade, all within a secure and efficient regulatory environment.
Who Regulates GIFT City?
GIFT City operates under the oversight of the International Financial Services Centres Authority (IFSCA), a statutory unified regulator established by the Indian Government in 2020 to govern all financial services in IFSCs.
IFSCA ensures:
- Simplified rules and faster approvals
- Regulatory clarity for global investors
- Risk-based supervision in line with global standards
- Innovation-friendly frameworks for fintech and digital assets
This makes GIFT City not just a location but a reliable ecosystem for NRI investors.
What Makes GIFT City a Smart Choice for NRI Investors
- Tax Benefits for NRI and OCI Investors in GIFT City
One of the biggest advantages of investing through GIFT City is its highly favourable tax structure for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). Here are some of the notable tax benefits that make GIFT City a smart investment destination:- Reduced Capital Gains Tax:
Capital gains on stocks and derivatives listed on IFSC exchanges (like India INX or NSE IFSC) are taxed at just 9%, offering a clear edge over standard Indian capital gains tax rates. - No TDS (Tax Deducted at Source):
Income earned by NRIs and OCIs from GIFT City funds is not subject to TDS, which means higher post-tax returns and better cash flow flexibility. - Lower Tax on Dividends:
Dividend income earned through investments in GIFT City is taxed at a concessional rate of 10% significantly lower than what’s applicable for similar investments. - DTAA (Double Taxation Avoidance Agreement) Benefits:
Since all transactions in GIFT City are conducted in foreign currency, NRIs can take advantage of India’s DTAA treaties. This helps reduce or eliminate double taxation on income in their country of residence. - No GST on Transactions:
GIFT City transactions are exempt from Goods and Services Tax (GST). This results in lower transaction costs and a more efficient investment process.
- Reduced Capital Gains Tax:
This translates to higher post-tax returns without any complications.
- Access to Global Investment Opportunities
GIFT CITY allows NRIs to access a diverse range of global investment options through Indian platforms:- Global equities (like Apple, Amazon, Tesla)
- International ETFs and mutual funds
- Derivatives and structured products
With access to India INX and NSE IFSC, NRIs can invest in global stocks and ETFs, all while staying connected to Indian markets.
- No Need for PIS or Multiple Bank Accounts
Traditional NRI investing in India often requires:- NRE/NRO accounts
- Portfolio Investment Scheme (PIS)
- Separate Demat and bank accounts
GIFT City eliminates this complexity. You can now invest with a single, simplified account making your experience seamless and paperless.
- High Regulatory Standards with Global Ease
GIFT City is built with world-class infrastructure, reliable digital frameworks, and is regulated by the International Financial Services Centres Authority (IFSCA), offering:- Faster onboarding
- Streamlined compliance
- International standards of transparency and governance
Its policies mirror global best practices while catering to NRIs that respect global investor protection norms while offering India-specific advantages.
- Diverse Investment Products Under One Roof
GIFT City opens access to a wide range of regulated premium financial products. Apart from Global stocks and bonds, GIFT City also opens doors to:- AIFs (Alternative Investment Funds)
- PMS (Portfolio Management Services)
- International insurance products
- Real Estate
- Hedge Funds
This means better portfolio diversification and risk control for NRIs all under IFSCA’s Regulations.
- A Strategic Location for Long-Term Vision
GIFT City is not just a financial hub; it’s a visionary infrastructure project backed by the Indian government. It’s shaping up to be a global financial powerhouse with:- World-class office spaces
- Robust connectivity
- A magnet for fintech and financial services
For NRIs looking to anchor their financial future in India, GIFT CITY is the perfect launchpad.
How Can NRIs Invest in GIFT City?
The primary ways to invest in GIFT City for NRIs are:
- Through Financial Advisors/MfDs
- Through AMCs
Why Investing Through a Financial Advisor Makes Sense
While direct investing is allowed, working with a financial advisor brings clarity, convenience, and confidence. Here’s how they can help:
- Helps you choose the right products based on your goals
- Ensures proper documentation and smooth onboarding
- Keeps your investments compliant and optimised
- Guides you with portfolio reviews and rebalancing
Risks of Investing in GIFT City
While GIFT City offers exciting opportunities, it’s wise to understand a few risks before stepping in:
- Big Ticket Size:
Some investment options in Gift City need a large initial amount. Many investment options in GIFT City come with a high entry threshold, often starting at $1,50,000. This makes them less accessible for smaller or first-time investors. - Global Market Volatility:
Since GIFT City investments are linked to Global markets, their performance can fluctuate with global news, trends, geopolitical events, etc. - Currency Risks:
Since the investments in GIFT City are made and redeemed in foreign currencies, the returns can be affected by currency exchange rate fluctuations.
Final Thought
GIFT City is a forward-looking platform that opens the door to global investment opportunities for NRIs and OCIs. With tax advantages, access to international markets, and a simplified process, it offers a smart way to grow and manage wealth from India.
However, like any investment, it comes with certain risks, which is why guidance from a trusted financial advisor can make your journey smoother, safer, and more rewarding.
If you’re planning to diversify your portfolio and take advantage of global opportunities through India, GIFT City could be the perfect place to begin.
Unlock Global Opportunities from India’s Financial Hub
Let’s connect and design a plan that makes the most of what GIFT City offers.
Disclaimer: Mutual Fund Investments are subject to market risks. Read all scheme-related documents carefully before investing.
