GIFT City (Gujarat International Finance Tec-City) in Gandhinagar is home to India's International Financial Services Centre (IFSC). It works like an offshore financial hub on Indian soil: investments are made in foreign currency, usually US dollars, under a separate regulator, the International Financial Services Centres Authority (IFSCA).
Banks, fund houses, brokers and insurers have set up dedicated IFSC units there. Through them, investors can access global markets and dollar-based products without going through an overseas provider — while dealing with familiar Indian institutions, Indian law and Indian courts.
Funds in GIFT City work in two directions. Outbound funds invest in global markets, and resident Indians can invest in eligible ones under the RBI's Liberalised Remittance Scheme (LRS). Inbound funds invest in Indian markets and are mainly designed for NRIs and foreign investors.
Where it may fit
- Resident Indians seeking global diversification beyond Indian markets
- NRIs who want to invest in India in US dollars, without converting to rupees
- NRIs in countries where regular Indian mutual funds are restricted
- Investors wanting dollar-denominated assets for future overseas goals, such as children's education abroad
Things to consider
- Resident Indians can invest only through LRS, within the USD 250,000 per financial year limit, and only in eligible products
- Minimum investments are in US dollars and usually higher than regular mutual funds
- Currency movements can increase or reduce your returns
- Feeder funds can carry two layers of costs
- Tax treatment differs for residents and NRIs — capital gains remain taxable in India for resident investors
Please note: GIFT City is a fast-evolving space and rules, eligible products and tax treatment can change. We confirm the current position and your eligibility before any decision.
Who can invest, and how
| Resident Indians | NRIs & OCIs | |
|---|---|---|
| Route | Liberalised Remittance Scheme (LRS) | Directly, from overseas or NRI accounts |
| Limit | USD 250,000 per financial year (all LRS remittances combined) | No LRS limit |
| What you can invest in | Eligible outbound (global) funds and products | Wider range — inbound and outbound funds, dollar deposits and more |
| Tax | Capital gains taxable in India as per your slab/rules; TCS may apply on LRS remittances | Eligible IFSC funds can offer tax advantages for non-residents under current rules |
Rules and eligibility vary by product and can change. We confirm the current position for your situation.
What you can access through GIFT City
Global mutual funds
Funds managed from GIFT City that invest in international equities and bonds — a route to global diversification.
India-focused funds for NRIs
Dollar-denominated funds that invest in Indian markets, designed mainly for non-resident investors.
Dollar deposits
US dollar fixed deposits with IFSC banking units of Indian banks, mainly for NRIs.
AIFs & portfolio services
Alternative investment funds and portfolio management for larger investors, with higher minimums.
How investing through GIFT City works
- Check eligibilityWe confirm which GIFT City products you can invest in, based on your residential status and goals.
- Open the accountComplete KYC with the IFSC fund house or platform.
- Remit the moneyResident Indians remit from their bank under LRS; NRIs transfer from overseas or NRI accounts.
- Invest and reviewYour investment is held in US dollars and reviewed alongside the rest of your portfolio.
Key terms
- GIFT City
- Gujarat International Finance Tec-City, Gandhinagar — home to India's International Financial Services Centre.
- IFSC
- International Financial Services Centre — a zone treated as offshore for financial transactions.
- IFSCA
- International Financial Services Centres Authority — the regulator for financial services in GIFT IFSC.
- LRS
- Liberalised Remittance Scheme — the RBI route that lets resident Indians remit up to USD 250,000 a year abroad, including for investments.
- Feeder fund
- A fund that pools money and invests it in another (underlying) fund.
Questions people ask
Is GIFT City the same as investing abroad?
In many ways, yes — investments are in foreign currency and can give you global exposure. The difference is that you deal with institutions located in India, under Indian law and courts, through India's own international financial centre.
Can I start a SIP in a GIFT City fund?
Some funds allow periodic investments, but minimums are in US dollars and usually much higher than regular SIPs. For smaller monthly amounts, regular international mutual funds in India may be simpler.
Is GIFT City suitable for everyone?
No. It suits investors with a clear need for global or dollar-based investments and a portfolio large enough to absorb higher minimums and currency risk. For most goals, a well-built rupee portfolio remains the core.
The information on this page is educational and general in nature. It is not a recommendation to buy or sell any product. Investments are subject to market risks; read all scheme-related and offer documents carefully. Suitability depends on your individual circumstances.
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