Business

GIFT City Becomes Top Investment Destination For NRIs

India’s Gujarat International Finance Tec-City (GIFT City), the country’s first International Financial Services Centre (IFSC), is emerging as a prime destination for non-resident Indian (NRI) investors.

With its business-friendly policies, competitive tax structure, and global-standard infrastructure, GIFT City offers NRIs a seamless and efficient way to invest in India’s growing economy.

Investment Opportunities For NRIs

GIFT City presents a wide range of investment options designed to meet the needs of NRIs. Offshore Banking Units (OBUs) allow NRIs to hold foreign currency accounts in India, ensuring smoother fund management and better yields.

Additionally, IFSC exchanges like India INX and NSE IFSC provide access to global equities and bonds, offering NRIs the chance to diversify their portfolios.

The city also hosts over 140 Alternative Investment Funds (AIFs), including private equity, structured debt, and real estate.

NRIs can invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), gaining exposure to India’s real estate and infrastructure sectors without direct property management.

Furthermore, unit-linked insurance plans (ULIPs) and endowment plans available in GIFT City are exempt from capital gains tax, provided the annual premium is under 10% of the sum assured.

The Transformation: Before & After GIFT City

Prior to GIFT City, NRIs like Arjun from the UAE struggled with high taxes and complex regulations for mutual funds and property investments in India.

However, by 2025, GIFT City has transformed the NRI investment landscape.

Arjun now invests ₹1.3 crore in a dollar-denominated AIF, earning returns in USD, enjoying zero capital gains tax, and avoiding GST on fund administration.

The process is now simpler, more profitable, and globally competitive.

Tax Benefits & Future Outlook

GIFT City offers significant tax advantages, including exemptions on capital gains, low interest tax rates, and no GST on financial services.

Upcoming reforms like liberalized remittance schemes and ESG-focused AIFs will further enhance investment opportunities, making GIFT City an ideal hub for NRIs to engage with India’s financial growth.

Also Read: India’s Domestic Strength Will Drive Growth, Says Keki Mistry

Anamika Agarwala

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