GIFT City investment: Gujarat’s GIFT City has become a global gateway for investors. Here, NRIs and Indian investors can take advantage of foreign markets, dollar accounts, and excellent funds, while enjoying significant tax savings.
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Gujarat International Finance Tec-City (GIFT City), located in Gandhinagar, is India’s first global financial and technology hub. Established in 2015, the city spans 886 acres. Its primary objective is to provide international facilities to investors, similar to those in Dubai and Singapore. It attracts foreign companies to India and opens global markets to Indian investors.
All approvals in one place, making doing business easier
GIFT City’s biggest strength is its regulatory system. Starting a business here doesn’t require running around multiple offices. The IFSC Authority is the single authority that grants all banking, insurance, and marketing-related approvals. This authority serves as a combined entity representing major regulators like the RBI, SEBI, and IRDAI.
Huge tax savings and special exemptions for investors and companies
To promote business and investment in GIFT City, the government offers several fiscal benefits. Companies here enjoy tax holidays and are exempt from various deductions, including GST, securities transaction tax, and dividend distribution tax. These benefits reduce costs and increase profits.
Golden opportunity for NRIs to build a global portfolio
Non-Resident Indians (NRIs) can now build their global wealth portfolio through GIFT City. They can open savings accounts in foreign currency here. They can use this money to invest in stocks, real estate, debt, and private equity around the world. They also have access to advanced investment options such as Portfolio Management Services ( PMS ) and Alternative Investment Funds (AIFs).
Major changes and new investment options in 2025
In 2025, GIFT City has undergone several significant reforms. Indian residents can now open foreign currency accounts here. Fund management regulations have been simplified, allowing foreign fund managers to launch funds here without opening an office. Furthermore, income tax holidays have been extended until March 31, 2030.
How do GIFT City funds work and what are the challenges?
GIFT City funds operate much like mutual funds. The best part is that the fund itself pays taxes on its profits. This saves investors the hassle of individually tracking foreign transactions or filing taxes each year. However, some challenges remain. For example, a 20% TCS is levied on remittances exceeding ₹1 million annually. Additionally, a minimum investment of $5,000 is required to start investing.
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