Introduction
GIFT City has investment opportunities for both NRIs wanting to be a part of "India's growth story" and resident Indians looking for international exposure. It is India’s financial SEZ, modelled on investment destinations like Dubai and Singapore. For taxation purposes, GIFT City is treated as an off-shore investment destination. This means despite being a part of India, GIFT City is a foreign entity for tax and investment purposes.
We will look into the different financial instruments available, the process of investing in them, and the benefits of GIFT City investments.
How to Invest from GIFT City?
GIFT City offers a basket of financial instruments for investing in Offshore banking and deposits, Global or Indian equities, and Alternative Investment Funds (AIFs).
In this section, you will explore the investment opportunities in GIFT City.
Offshore Banking and Deposits
As of March 2024, there are 30 national and international bank branches located in GIFT City. Indian banks, such as HDFC, SBI, Bank of Baroda, and international banks, such as HSBC and Standard Chartered Bank, have international banking units in GIFT City.
These banks offer USD-denominated fixed deposits. You can check out Belong’s FD tool to compare the returns of these fixed deposits.
How to invest in fixed deposits?
Only NRIs and foreign nationals are eligible to open bank accounts and book FDs in GIFT City branches of the bank. The process of opening a GIFT City bank account is similar to opening a normal savings account.
You can follow the steps mentioned below:
- You will have to submit a signed and completed account opening form along with standard KYC documents like your current photographs, Indian PAN card, Aadhaar card, Passport, and Overseas Address Proof.
- You will have to deposit the minimum balance amount set by the bank.
You can download the Belong app and earn up to 2% extra returns on USD FD investment (exclusively for NRIs in UAE). It is only available to the first 1000 signups on our waitlist.
Alternative Investment Funds (AIFs)
AIFs are funds that pool resources from different investors to invest in alternative asset classes such as private equity, hedge fund and venture capital.
As of December 2024, there are 198 registered schemes with 2576 investors and $7 billion in commitments raised.
GIFT City AIFs have their net asset value (NAV) denominated in USD, are fully repatriable, and do not require an NRE/NRO account. Currently, the minimum ticket size for the GIFT City fund is $ 150,000.
There are two types of AIF funds in GIFT City: inbound and outbound funds. Inbound funds invest in India-based equities. Outbound funds invest in global equities.
How to invest in GIFT City based AIFs?
Here are the steps to invest in GIFT City based AIFs:
- Based on your requirements and investment goals, you can visit the fund websites listed in the IFSCA Directory and contact the fund manager.
- You will have to complete the KYC documentation by providing the necessary documents: a passport copy (Indian or foreign), bank statement (as address proof) and local residency proof or tax identification number (e.g., Emirates ID, SSN).
- You will have to share a soft copy of these documents and courier the hard copies to the investment manager later.
- Then you will need to fill out and sign the application form. Onboarding will be completed within the next 48 hours.
The point person from the fund will guide you through the process of investing in the fund.
Indian and global equities via GIFT City exchanges
Currently, GIFT NIFTY futures and global stocks are available for investment in GIFT City.
NSE IX (NSE International Exchange) and India INX (BSE International Exchange) are the two stock exchanges operating in GIFT City.
GIFT NIFTY (previously SGX Nifty) is a futures contract that tracks the NIFTY 50 index. India INX also has futures and options contracts.
As of March 2025, you can trade in 50 global stocks like Apple, Amazon, and Tesla through fractional investing on NSE IX.
Both of the exchanges offer extended trading hours: from 6:30 AM to 3:40 PM IST for session 1 and session 2, starting at 4:35 PM to 2:45 AM IST the following morning.
How can you trade in GIFT City exchanges?
Here are the steps you need to follow to trade in GIFT City exchanges:
First, find a broker who is a member of NSE IX here
Complete your KYC with the registered broker
The broker will guide you through other processes associated with opening your demat account.
You can start trading once you receive the confirmation of opening your demat account.
Retail Investment Options
Currently, retail investment options with smaller ticket sizes are not available in GIFT City. The Union Budget of 2025 had extended concessions to retail schemes to relocate to GIFT. In the near future, retail investment options will be available to investors.
Investors can choose the investment instruments based on their investment goals and risk profiles.
Who Can Invest in GIFT City?
NRIs, OCI, and foreign residents can directly invest in the investment products offered by GIFT City.
Indian residents can only invest in AIFs and securities in GIFT City. The Liberalised Remittance Scheme’s upper limit of USD 250,000 is applicable on Indian investments due to GIFT City’s offshore status. Banking options are not available to Indian investors.
Advantages of investing in GIFT City
GIFT City was conceptualised to make it easy for NRIs and foreign investors to invest in India. Onboarding into GIFT City products is simpler compared to the similar nature of on-shore products. You do not require a PAN card, NRE/NRO account (except trading), or your OCI card to purchase GIFT City products. You do not need to pay tax in India for your earnings in GIFT City products. Along with these, IFSCA’s unified regulation powers streamline all the processes associated with GIFT City investments.
Conclusion
GIFT City is evolving fast to become a popular destination for global Indians and foreigners wanting to be a part of India’s growth story. Tailwinds such as a unified regulator, concessions of the union government and easy repatriation point to this. Retail offerings from GIFT City will expand too. It’s only a matter of time before GIFT City will be on par with the likes of Dubai and Singapore.
Other Gift City Blogs
| Related blogs | |
|---|---|
