India's International Financial Services Centre, legally treated as foreign territory, offers two distinct opportunities — NRIs and foreign investors investing into India, and resident Indians investing abroad. Here is everything in one place: products, costs, tax, transparency, and process.
NextGen Family Office ServicesReference Guide · Updated Monthly
12 min read
For NRIs, OCIs, and foreign investors, GIFT City offers a way to invest into India — Indian equities, private credit, real estate, and infrastructure — entirely in foreign currency, under a regulatory framework legally treated as offshore even though it sits in Gujarat.
0%
Income tax / capital gains tax for non-residents on most GIFT IFSC income
$12B+
Assets under management in GIFT City AIFs as of December 2025
#1
GIFT City has surpassed Singapore and Mauritius as the largest AIF hub
Who Can Invest Inbound
✓ NRIs✓ OCI Cardholders✓ PIOs✓ Foreign Institutional Investors~ Foreign Retail Investors (newly permitted on GIFT exchanges)✗ Resident Indians (this is the outbound route for you — see tab above)
Why GIFT City Beats the NRE/NRO Route
Traditional NRE/NRO Route
✗
Convert to INR on entry, convert back on exit — currency drag both ways
✗
Repatriation capped at $1M/year from NRO
✗
Form 15CA/15CB, CA certificate, weeks of processing
✗
Many AMCs block US/Canada NRIs due to FATCA burden
✗
Capital gains taxed under standard Indian rules
VS
GIFT City IFSC Route
✓
Stays in USD/GBP/EUR throughout — no round-trip conversion
✓
No repatriation ceiling, no extra paperwork — moves like an international wire
Zero tax on most IFSC income for non-residents under current treaty framework
Investment Vehicles Available — Inbound
Category I AIF
Infrastructure & Venture Capital Funds
Typical horizon7–10 years
Minimum investmentUSD 1,50,000
Tax treatmentFull pass-through
Risk levelHigh
Category II AIF
Private Equity & Private Credit Funds
Typical horizon4–7 years
Minimum investmentUSD 1,50,000 (some from $50K)
Tax treatmentFull pass-through
Risk levelMedium–High
Category III AIF
Long-Short / Hedge-Style Funds
Typical horizon3–5 years
Minimum investmentUSD 1,50,000
Tax treatmentFund-level taxation
Risk levelMedium
Dollar Mutual Funds
India-Focused Equity Funds (USD)
Typical horizon3–5+ years
Minimum investmentVaries — often low
Tax treatmentZero capital gains for NRIs
Risk levelMedium
GIFT Exchanges (NSE IX / India INX)
Direct Listed Securities Trading
Typical horizonFlexible / liquid
Minimum investmentNo fixed minimum
Tax treatmentZero STT/CTT, zero stamp duty
Risk levelMarket-dependent
Real Estate
Leasehold Commercial / Residential
Typical horizonLong-term (99-yr leasehold)
Minimum investmentProperty-dependent
Tax treatmentStandard IFSC rules apply
Risk levelMedium — illiquid
The Inbound Onboarding Journey
1
Choose your route — Fund vs Direct Exchange
Decide whether you want managed exposure through an AIF/mutual fund, or direct trading access via GIFT exchanges.
2
Complete digital KYC
Most platforms now offer digital KYC — account opening can take as little as 7–14 days with pre-approved LRS/ODI routes for the fund side.
3
Remit funds in foreign currency
Wire USD/GBP/EUR directly — no INR conversion required at any point in the inbound journey.
4
Invest and monitor
Holdings, NAVs, and statements are maintained in foreign currency. Most platforms provide online dashboards.
5
Repatriate freely
No repatriation ceiling for IFSC IBU accounts. Funds move out like any international wire transfer.
For NRIs who have been frustrated by FATCA-related blocks on Indian mutual funds, or by the friction of NRE/NRO repatriation, GIFT City is often the cleanest way to maintain meaningful India exposure without the currency and compliance drag.
— NextGen Family Office Services
For resident Indians, GIFT City offers a way to invest outside India — global equities, US stocks, international funds — using the same Liberalised Remittance Scheme (LRS) limits, but often with lower costs and better structuring than a traditional overseas brokerage account.
$250K
Annual LRS limit per individual for outbound GIFT City investments
2025-26
IFSC investment universe for resident Indians expanded significantly
USD
All transactions priced and settled in US Dollars via NSE IX
Who Can Invest Outbound
✓ Resident Indian Individuals (via LRS)✓ Resident Indian Family Members (each gets own $250K limit)~ HUFs (subject to specific conditions)✗ NRIs/OCIs (use the Inbound tab — different rules apply)
Important: Your GIFT City outbound investment counts toward your overall $250,000 annual LRS cap — the same cap that applies to all other foreign remittances (education, travel, foreign property, other investments). It is not an additional limit.
Investment Vehicles Available — Outbound
Unsponsored Depository Receipts (UDRs)
US Stocks via NSE IX
What you can buyApple, Microsoft, Tesla, Amazon & more
CurrencyUSD-priced & settled
Minimum investmentFractional — very low
LiquidityHigh — exchange traded
Global Access Platforms
International Equity & ETF Access
What you can buyGlobal equities, ETFs, indices
CurrencyUSD-denominated
Regulatory statusFramework under active update by IFSCA
LiquidityVaries by platform
Category II/III AIFs (Global Mandate)
Global Diversified Funds
What you getProfessionally managed global exposure
Minimum investmentUSD 1,50,000 typical
Horizon3–7 years depending on category
Best forLarger LRS allocations
India-Focused Dollar Funds
e.g. Tata India Dynamic Equity Fund
NoteNot all GIFT funds are "outbound"
PurposeIndia exposure, priced in USD
Relevance hereUseful for NRIs returning capital to India
CurrencyUSD
GIFT City vs Traditional Overseas Brokerage — The Cost Picture
IFSCA single regulatorUnlike navigating multiple foreign regulators, GIFT City products fall under one Indian regulatory body with powers similar to RBI/SEBI.
~
Fewer service providers than Singapore/MauritiusCustody, legal, and arbitration services are still maturing — though onshore IFSCA-accredited vendors are growing.
~
Global Access framework still evolvingRegulations for resident Indians accessing global markets via IFSC are under active consultation — expect updates over the next 3-6 months.
✓
LRS reporting stays familiarSince the LRS process is the same as any other foreign remittance, your existing tax reporting framework largely applies.
For resident Indian families using their LRS allocation for global diversification, GIFT City increasingly offers a more cost-efficient, India-regulated alternative to opening accounts with international brokers — without giving up genuine USD exposure.
— NextGen Family Office Services
Disclaimer: GIFT City regulations, fund availability, minimum investment amounts, and tax treatments are subject to change and depend on individual circumstances, residency status, and the specific fund or platform chosen. This page is for informational purposes only and does not constitute investment, tax, or legal advice. NextGen Family Office Services is not a SEBI-registered investment adviser for GIFT City products and does not distribute or earn commissions on any product mentioned. We recommend consulting directly with IFSCA-registered intermediaries and your tax advisor before investing. Information current as of June 2026 and subject to regulatory updates.
Exploring GIFT City for Your Family's Portfolio?
We help families understand whether GIFT City products fit their overall structure — inbound or outbound — and coordinate with the right IFSCA-registered intermediaries. No products sold, no commissions earned.