GIFT City: A Rising Investment Hub for NRIs
GIFT City: A New Frontier for NRI Investments
The Gujarat International Finance Tec-City (GIFT City) is quickly becoming a top choice for non-resident Indians (NRIs) looking to invest. It offers an offshore-like investment experience while tapping into India's growth potential. As of December 2025, GIFT City has seen an impressive 60-fold surge in capital commitments, reaching $32.13 billion, a significant rise from under $0.5 billion in March 2020, as reported by officials. The GIFT International Financial Services Centre (IFSC) has recorded over 1,000 registrations and banking assets surpassing USD 106 billion, showcasing the vastness of its ecosystem.
Vishal Goraddia, a Fund Manager at Aikyam India Discovery Fund, highlighted that NRIs are drawn to the opportunity to invest in India-focused ventures through a regulated international financial center. This setup facilitates foreign currency investments, diverse fund structures, and cross-border wealth management. The regulatory framework has been bolstered by updates from the International Financial Services Centres Authority (IFSCA), including recent changes in April 2026.
Over the past five years, the fund ecosystem within GIFT City has experienced remarkable growth, with the number of Fund Management Entities (FMEs) skyrocketing to 202 from just 8 in March 2020. Additionally, the number of fund schemes has expanded from fewer than 10 to 313, reflecting a rapid diversification in investment products and strategies across various asset classes.
Goraddia also pointed out the strong tax efficiency offered by GIFT IFSC. Certain capital gains and eligible derivative income can be exempt from taxes, and there is no securities transaction tax. Furthermore, IFSC funds permit 100 percent participation from NRIs and Overseas Citizens of India (OCI). The operational structure is designed to be seamless, minimizing compliance burdens and often eliminating the need for regular Indian tax filings associated with direct onshore investments.
As of January 2026, NRI deposits in India reached USD 165.78 billion, with India's GDP growth projected at 6.4 percent. This combination of global Indian capital and domestic economic growth positions GIFT City as a strategic avenue for NRI investments.
Regulated by the IFSCA, GIFT City is India's inaugural IFSC, situated near Gandhinagar in Gujarat. Its unique status as both a Special Economic Zone (SEZ) and a Domestic Tariff Area (DTA) makes investment in GIFT City highly attractive, offering numerous benefits for all investors, including NRIs.