Conversely, NRIs and other foreign investors investing in India had to contend with additional compliance, documentation, currency conversion and taxation.
It is still early days, but what stands out is the intent to bring global investing closer to home, without diluting the sophistication that investors expect. And offering Residents, Non-Resident Indians (NRIs) and foreign nationals a regulatory and tax environment similar to global hubs like Singapore or Dubai.
A Different Kind of Financial Ecosystem
GIFT City’s International Financial Services Centre (IFSC) structure is what sets it apart. Its capacity to support foreign exchange transactions and host institutions and funds that provide global financial products under a single regulatory framework. Unlike the rest of India, where multiple regulatory bodies regulate different aspects, the IFSCA acts as a single-window regulator for banking, insurance, and capital markets.
Making Investing for NRIs & Global investors in India Less Cumbersome
The primary advantage of GIFT City is its status as a “foreign territory” under Indian exchange control laws, allowing NRIs and other foreign investors to transact and invest in foreign currencies (like USD, EUR, or GBP) without mandatory conversion to Indian Rupees. Capital and returns can be moved abroad freely.
From an investor perspective, remote onboarding via video KYC is available, allowing accounts to be opened without visiting India. Taxation norms & rates have also been eased on dividends, capital gains, interest and transactions. For instance, no capital gains tax is payable in India for investments made via fund-of-fund structures.
Global Investing Made Smoother
One of the biggest frictions in overseas investing has always been execution. Under Liberalised Remittance Scheme (LRS), even a simple allocation can involve multiple steps and stakeholders.
GIFT City doesn’t eliminate all of that, but it does make the process more seamless. Access to global equities, fixed income, and alternative assets is becoming more integrated. And that’s where the real shift has happened.
When access becomes easier, behaviour tends to follow. What was earlier an occasional allocation could gradually become more structured and consistent. In a way, this could bring global investing closer to how domestic mutual funds evolved – more accessible, more systematic.
A Rapidly Scaling Global Financial Hub
With more than 29 million square feet of space allotted and more than 1,000 entities already in operation, GIFT City has quickly developed into a major financial hub. Over 20,000 professionals have been employed by the ecosystem, demonstrating its expanding economic influence. Furthermore, as of September 2025, GIFT City’s total banking asset size exceeded USD 100 billion, highlighting its growing prominence in the world financial ecosystem.
Why Regulatory Comfort Matters
For Global investors, regulatory certainty is as important as returns. One of the key advantages of GIFT City is the clarity offered by the IFSCA framework.
The regulations are designed to be globally aligned while ensuring oversight and transparency. This reduces ambiguity and gives investors greater confidence when allocating capital internationally.
In contrast to some offshore jurisdictions where regulatory norms may vary or evolve unpredictably, GIFT City offers a more stable and familiar environment for Indian and Global investors.
Still Evolving, But Moving in the Right Direction
It would be premature to say GIFT City is a fully mature ecosystem. There’s still depth to be built in the form of more products, more liquidity, and broader participation from global players.
That said, the direction is clear. The pace at which institutions are setting up presence here is encouraging, and policy support has been consistent. The depth of products, liquidity, and participation from global players will continue to evolve. As more institutions, fund houses, and intermediaries establish their presence, the ecosystem will strengthen.
(The author is MD & CEO, Shriram Wealth )