Are Indian equities and GIFT City becoming top picks for NRI investors?

India’s long-term equity story is increasingly attracting non-resident Indians (NRIs), supported by consistent market performance and improving investment infrastructure. The BSE Sensex has delivered approximately 15.5% CAGR in rupee terms and around 9.5% in dollar terms over time, reinforcing India’s position as a compelling destination for global investors seeking sustainable wealth creation.

This structural growth narrative, backed by economic reforms and expanding domestic demand, is prompting NRIs to recalibrate their portfolios, with a growing tilt toward equities and globally diversified investment platforms such as GIFT City.

Core allocation

Mayank Bhatnagar, Co-Founder & COO, FinEdge, said NRIs are increasingly viewing India as a long-term growth opportunity, driven by strong macro fundamentals and its trajectory to become the world’s third-largest economy.

“Equities remain the most preferred asset class for long-term wealth creation, as they allow direct participation in India’s growth story,” he said.

However, he cautioned that a significant portion of NRI investments still flows through traditional banking channels, where investors are often sold high-commission products such as insurance-linked plans and structured offerings. “These products typically come with long lock-ins, limited flexibility, and sub-optimal returns, making them unsuitable for genuine wealth creation,” Bhatnagar added.

For long-term investors, he emphasised that diversified equity investments remain the most effective route, while allocations to debt and alternative assets should be aligned with individual risk appetite and investment horizon.

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GIFT City prominence

GIFT City is rapidly gaining prominence as a global investment gateway for NRIs, offering the ability to invest in multiple foreign currencies such as USD, GBP, and AED. The platform eliminates immediate currency conversion risk and allows full repatriation of capital and returns without requiring separate RBI or FEMA approvals.

Policybazaar has expanded its presence within the GIFT City ecosystem, focusing on investment-linked insurance products tailored for NRIs. According to Bimal Menon, Principal Officer at Policybazaar’s GIFT City branch, the IFSC route now accounts for over half of its NRI customer base.

He highlighted key benefits including tax exemptions under Section 10, absence of TDS, simplified repatriation, and a unified regulatory framework under the International Financial Services Centres Authority (IFSCA).

Lakshit Mahajan, Head of NRI Investment Business, noted that the platform is seeing rising participation from younger investors, particularly in the 28-45 age group. He added that seamless digital onboarding and access to global assets such as gold and silver ETFs are driving adoption.

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Currency trends

Currency dynamics are also influencing NRI investment decisions. Bhatnagar pointed out that recent global volatility and foreign institutional investor (FII) outflows have put short-term pressure on the rupee, prompting reassessment of allocations.

“A weaker rupee works in favour of NRIs, as each dollar converts into more rupees, enhancing the effective value of investments,” he said.

Despite gradual depreciation of the currency over time, India continues to grow as a consumption-driven economy, supported by manufacturing expansion and structural reforms. Bhatnagar noted that India is increasingly being viewed as a resilient economy amid global uncertainty, with currency movements also aiding export competitiveness.

Long-term outlook

NRIs are now treating India as a strategic core allocation within their portfolios. While some are increasing exposure to capitalise on long-term growth and favourable currency trends, others are maintaining diversified allocations to manage risk. “Despite near-term volatility, long-term structural growth remains the key driver of NRI investment decisions,” Bhatnagar said.

With rising inflows from key markets such as the US, UAE, and UK, and growing participation from younger investors, India — along with platforms like GIFT City — is poised to play a central role in global NRI investment strategies.