Why GIFT City is becoming a top investment route for NRIs: 5 facts to know

As global wealth becomes increasingly mobile, non-resident Indians (NRIs) are rethinking how they engage with India’s growth story. The shift is no longer limited to capital flows—it is equally about choosing efficient, globally aligned investment structures that simplify access while maintaining regulatory clarity.

“NRIs are transitioning from opportunistic investing to strategic allocation, and from fragmented exposure to integrated platforms,” says Vishal Goraddia, Fund Manager, Aikyam India Discovery Fund, Aikyam Capital Group. In this evolving landscape, GIFT City is emerging as a preferred gateway for global Indian capital, combining tax efficiency with institutional-grade infrastructure.

1. Rising NRI wealth

NRI deposits in India have reached around USD 165 billion, underlining the scale of overseas capital looking for productive deployment. As portfolios become more global and diversified, the need for seamless cross-border execution has intensified.
“There is a growing need for platforms that can efficiently manage cross-border portfolios without fragmentation,” Goraddia explains. GIFT City addresses this by offering a unified ecosystem where investments can be executed, monitored, and repatriated efficiently.

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2. India’s expanding markets

India’s equity market capitalisation stands at ~$5 trillion, while the Alternative Investment Fund (AIF) industry has crossed ₹10 lakh crore in commitments. This depth across listed and unlisted markets is expanding the opportunity set for investors.
“This expanding depth across public and private markets is creating a broader opportunity set for NRIs,” Goraddia notes. Through GIFT City, NRIs can access these opportunities in a globally compatible structure without the limitations of traditional routes.

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3. Institutional investing

Globally, alternative assets now account for over USD 13 trillion in assets under management, reflecting a clear tilt toward professionally managed investment vehicles. This trend is increasingly visible among NRIs as well.

“The shift towards institutional frameworks with strong governance and risk management is clearly visible,” says Goraddia. GIFT City enables access to AIFs, private equity, venture capital, and structured strategies, aligning NRI portfolios with global allocation trends.

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4. Operational efficiency is becoming a key driver

Cross-border investing has historically involved complex compliance layers, multiple banking interfaces, and operational inefficiencies. For global investors, ease of execution is now a critical factor.
“Ease of execution and capital mobility are becoming decisive in investment decisions,” Goraddia says. GIFT City simplifies these processes through streamlined regulations, faster fund flows, and integrated financial services, making it significantly easier to deploy and manage capital.

5. India’s growth outlook

India is projected to grow at around 6.4% in 2026, making it one of the fastest-growing major economies. This growth is backed by strong government capital expenditure exceeding ₹11 lakh crore, along with expansion across manufacturing, renewables, and financial services. “These structural drivers provide a strong foundation for long-term capital allocation aligned with India’s growth trajectory,” Goraddia adds.

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What makes GIFT City structurally attractive

GIFT City (Gujarat International Finance Tec-City) operates as an international financial hub, offering NRIs a tax-efficient, dollar-denominated platform to invest across asset classes.

Key advantages include:

100% income tax exemption on select investments

No capital gains tax on certain IFSC-listed securities

Reduced tax rates (around 9%) on some listed debt instruments

Easy repatriation of funds and simplified compliance

Investments in foreign currency, reducing transaction friction

Investment avenues available to NRIs include:

AIFs and mutual funds focused on equity, real estate, and infrastructure

Foreign currency deposits via International Banking Units (IBUs)

Global trading platforms (India INX/NSE IX) offering access to US stocks, indices, and derivatives

Debt instruments such as Masala Bonds and Green Bonds

Insurance and reinsurance products

However, investors should note that certain products, particularly AIFs, typically require a minimum investment of around $150,000 (₹1.25 crore).

From a regulatory standpoint, GIFT City is governed by the International Financial Services Centres Authority (IFSCA), ensuring a robust framework aligned with international standards.

As NRIs increasingly shift toward structured, globally integrated portfolios, GIFT City is evolving beyond a financial centre into a strategic investment gateway. “It is not just about access anymore—it is about efficiency, structure, and alignment with global investing practices,” Goraddia says. “GIFT City is positioning itself as the bridge between global capital and India’s next phase of growth.”