India’s first International Financial Services Centre (IFSC), Gujarat International Finance Tec-City (GIFT City), has rapidly emerged as a game-changing investment hub for Non-Resident Indians (NRIs) and startups. With world-class infrastructure, a progressive regulatory environment, and unparalleled tax incentives, GIFT City is not just a concept - it's a vision for India’s global economic future. So, what makes it a golden opportunity? Let’s see the facts.
For millions of Indians living abroad, the decision between holding an Overseas Citizen of India (OCI) card or retaining full Indian citizenship is more than just a legal status—it's about rights, responsibilities, and long-term plans. In 2025, updated policies and global shifts make it even more crucial for NRIs to understand the differences. Here's your ultimate guide, based on official data and trusted sources.
Located in Gandhinagar, Gujarat, GIFT City is a smart city and financial services hub, designed to compete with global financial centers like Singapore, Dubai, and London. It houses IFSC entities regulated by bodies such as the IFSCA (International Financial Services Centres Authority).
NRIs often seek efficient, low-risk ways to invest back in India while enjoying global-level facilities. Here’s how GIFT City meets that demand
● NRIs can invest in IFSC banking units (IBUs), Alternative Investment Funds (AIFs), REITs, bonds, and equity instruments regulated under a globally aligned framework.
● IDFC FIRST Bank, ICICI Bank, and others have tailored NRI offerings through their IBUs.
● 100% tax exemption for 10 consecutive years out of 15 for units set up in IFSC.
● No capital gains tax, no securities transaction tax (STT), and no commodity transaction tax (CTT) on exchanges operating in GIFT City.
● No stamp duty on transfer of financial instruments.
NRIs can open foreign currency accounts, making it easier to park overseas income and invest without currency conversion risks.
It’s not just NRIs - startups are increasingly eyeing GIFT City for strategic reasons:
1. Regulatory Simplicity
● A single-window clearance system and IFSCA’s progressive regulatory norms attract fintech, wealthtech, and insurtech startups.
2. Access to Global Capital
● By operating in an IFSC, startups can raise foreign capital more easily and also access global investors who may be hesitant to invest in traditional Indian markets.
3. Low Operational Costs
● Compared to hubs like Mumbai or Bangalore, GIFT City offers lower lease and manpower costs, making it a cost-effective launchpad for new-age firms.
According to Rajesh Cheruvu (Chief Investment Officer at LGT Wealth India), platforms like AIFs and mutual funds operating from GIFT City have become game-changers for NRIs due to transparent structures, investor protection, and access to high-growth Indian sectors.
| Feature | GIFT City Offering |
|---|---|
| Tax Benefits | 100% tax exemption (10/15 years) |
| Currency Management | USD, EUR, GBP accounts allowed |
| Regulated By | IFSCA (Independent regulatory body) |
| Investment Avenues | AIFs, Bonds, IBUs, REITs |
| Risk | Low – Highly regulated and transparent |
| Capital Access | Easier access to global funds |
GIFT City is not just another infrastructure project - it's a financial revolution in progress. With robust governance, smart infrastructure, and investor-friendly policies, it offers NRIs and startups a once-in-a-generation opportunity to be part of India’s ascent as a global economic powerhouse. Whether you’re an NRI looking to diversify or a startup aiming to scale, GIFT City might just be your gateway to India’s financial future.
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