10 Benefits of GIFT City for Global Investors (Update 2025)

Gujarat International Finance Tec-City (GIFT City) is proving to be a disruptor in 2025 for global investors and NRIs. In this blog, we discuss why this smart city is quickly becoming a "must invest" location for global investors, especially for NRIs looking to capitalize on NRI investment in India.

1. Use of Tax-Advantageous Offshore Structure

The International Financial Services Centre IFSC in GIFT City is considered a "non-resident" under the Foreign Exchange Management Act (FEMA), which means NRI investors and global investors get to access India's economy through offshore routes. You get to transact in 15+ currencies, with or without NRE/NRO accounts and a PAN card.

2. Huge tax benefits & exemptions

Fixed deposits with International Banking Units (IBUs) provide tax-free interest as all TDS tax applies only in the investor's country, making it a tax-free investment in India.

Category-III AIFs that technically never incur capital gains tax, as there is no fund-level or investor-level taxation.

There are Tax-free investment options in India under Section 10(4E) of the Income Tax Act; full exemption under capital gains on income representing OTC derivatives and forward contracts.

3. Access to Global Markets

Investors are able to trade global equities, bonds, ETFs, and derivatives via GIFT City’s NSE International Exchange (NSE IX) and India INX.  GIFT Nifty USD-settled futures allow global hedging and exposure. 

4. Less Bureaucracy and Regulation Under IFSCA

GIFT City is governed by the International Financial Services Centres Authority (IFSCA), which has all the regulatory authority of the RBI, SEBI, IRDA, and PFRDA consolidated into one authority, which streamlined governance and reduced delays. This unified model is one of the key Gift City benefits

5. Significant Fund Ecosystem 

As of mid-2025, GIFT IFSC has 177 fund managers and over 270 funds with AUM. The category-III AIF commitments area volume has nearly tripled and has a total AUM of $23.5 billion, and a target of $100 billion by 2030. This growth is driving new momentum in GIFT City NRI investments.

6. Attracting Global Capital

The UAE's sovereign wealth fund ADIA has set up shop at GIFT City, establishing a multi-billion-dollar fund to invest in India via the hub. 

7. Growing base of Financial Institutions & Startups

Many global banks, tech companies, and fund managers are joining GIFT City as a base; 20 tech companies and 10 accounting/bookkeeping firms alone recently joined. 

Indian VCs are also adopting GIFT City as their preferred base for India investments and ignoring more traditional offshore investment routes like Mauritius.

8. Green Finance Leadership

State Bank of India (SBI) has secured a €100 million credit line from AFD at its GIFT City branch to scale green financing, aligning with SBI’s ESG objectives and enabling GIFT City to serve as a sustainable financing hub. 

9.  Smart Infrastructure of Global Quality

GIFT City operates as a completely planned smart city with connected neighbourhoods, underground utilities, centralised cooling, and an IGBC Platinum sustainability rating.

10.  International Ranking and Recognition

In 2025, GIFT City advanced in the Global Financial Centres Index with a reputational advantage and ranked 40th in fintech and 46th overall. This recognition secures GIFT City benefits for both global and NRI investors.