As global investment opportunities expand, Non-Resident Indians (NRIs) are seeking smarter ways to grow and safeguard their wealth. India’s Gujarat International Finance Tec-City—better known as GIFT City—has rapidly emerged as a premier destination for international finance, offering NRIs a unique blend of tax efficiency, regulatory clarity, and seamless global access. For clients and readers of Moat Wealth, understanding GIFT City’s potential is more than just a trend—it’s an essential step in building a resilient, globally diversified portfolio.
What is GIFT City?
GIFT City is India’s first greenfield smart city and International Financial Services Centre (IFSC), strategically located near Gandhinagar, Gujarat1. Conceived in 2007, GIFT City was designed to rival global financial hubs like Singapore and Dubai by providing a world-class ecosystem for financial services, fintech, and allied sectors. The city spans 886 acres, with state-of-the-art infrastructure, 24/7 reliable utilities, and a walk-to-work urban layout. It is already home to over 550 operational entities and employs more than 20,000 professionals.
Key highlights include:
- Platinum-certified smart city standards
- Integrated business, residential, and social infrastructure
- Direct connectivity via highways, metro, and soon, the Mumbai–Ahmedabad bullet train
The Regulatory Backbone: IFSCA
GIFT City operates under the International Financial Services Centres Authority (IFSCA), a unified regulator established in 2020 to oversee all financial activities within the IFSC. Unlike traditional Indian financial markets, where multiple regulators (SEBI, RBI, IRDAI, PFRDA) have overlapping jurisdictions, IFSCA streamlines governance, ensuring agility, investor protection, and robust compliance
For NRIs, this means:
- Faster onboarding and streamlined compliance
- Access to a broad suite of global financial products under one regulatory umbrella
- Dispute resolution and international cooperation for cross-border transactions
Why GIFT City is a Game-Changer for NRIs
1. Tax Efficiency
GIFT City offers NRIs a suite of tax advantages rarely found in traditional Indian markets:
- No capital gains tax on derivatives and certain securities
- No Securities Transaction Tax (STT) or stamp duty on IFSC trades
- Interest income from IFSC entities is tax-free for non-residents
- Dividend withholding tax capped at 10%, lower than the 20% on the mainland
- Corporate tax holiday for IFSC units: 100% exemption for 10 out of 15 years
These incentives make GIFT City especially attractive for NRIs in high-tax jurisdictions, enabling them to maximize post-tax returns
2. Global Investment Access—From India
Through GIFT City, NRIs can invest in:
- International mutual funds and ETFs
- Foreign equities via Un-Sponsored Depository Receipts (UDRs)
- Global bonds, structured products, and alternative investments
All transactions are conducted in international currencies (primarily USD), eliminating currency conversion risks and making portfolio performance easier to track for NRIs.
3. Full Repatriability and Ease of Banking
Funds invested via GIFT City are fully repatriable—NRIs can freely move money in and out, thanks to relaxed FEMA norms and SEZ benefits. Opening USD, GBP, or EUR fixed deposits is straightforward, with leading Indian banks like HDFC and ICICI offering competitive rates.
4. Lower Compliance Hassles
GIFT City’s regulatory framework is designed to be FATCA and CRS compliant, simplifying KYC and reporting for NRIs in the US, UK, Canada, and other jurisdictions. This contrasts with the often cumbersome compliance requirements of traditional Indian mutual funds.
Investment Opportunities for NRIs at GIFT City
| Product Type | Key Features |
| Mutual Funds | Managed by IFSC-registered AMCs; invest in global equities, debt, and thematic ETFs |
| Alternative Funds | AIFs for private equity, venture capital, and real estate; ideal for larger portfolios |
| UDRs | Access US-listed stocks (Apple, Tesla, Google) via IFSC exchanges—no foreign brokerage needed |
| Foreign Currency FDs | USD/GBP/EUR deposits, fully repatriable, tax-free interest |
| Insurance Products | USD-denominated life and health insurance plans from leading providers |
Minimum Investment Thresholds:
- Mutual Funds: Typically USD 150,000
- Fixed Deposits: From USD 5,000
- UDRs/ETFs: Variable, often accessible to retail investors
Who Stands to Benefit Most?
GIFT City is particularly advantageous for NRIs in:
- USA & Canada: FATCA/CRS compliance, USD-denominated assets, tax efficiency
- UAE & Middle East: Tax-free home jurisdictions, easy repatriation
- UK & Europe: Strong DTAA treaties, transparent structures
- Singapore & Australia: Currency diversification, seamless access to India-based global funds
How Moat Wealth Empowers NRIs at GIFT City
Moat Wealth’s mission is to provide clients with goal-based, tax-efficient, and globally diversified investment solutions. Our approach to GIFT City investments is tailored to the unique needs of NRIs:
- Personalized assessment: We evaluate your eligibility, risk profile, and investment goals
- End-to-end onboarding: From documentation to compliance, we handle the process seamlessly
- Product curation: We recommend the most suitable funds, AIFs, and FDs based on your objectives
- Ongoing monitoring: Transparent reporting and active portfolio management
- Tax optimization: Structuring investments to maximize post-tax returns, leveraging GIFT City’s unique benefits
- Dedicated support: Access to experienced wealth managers for all your queries
At Moat Wealth, we believe that true wealth management is about more than just returns—it’s about clarity, confidence, and peace of mind.
Final Thoughts
GIFT City is not just India’s answer to global financial hubs—it’s a transformative platform for NRIs seeking tax efficiency, regulatory clarity, and global investment access. As the ecosystem matures, early adopters stand to benefit from first-mover advantages and a broader suite of innovative products.
If you’re an NRI looking to diversify your portfolio, optimize your tax position, and access global markets from India, GIFT City is the gateway you’ve been waiting for.
