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GIFT City

India's gateway to global markets

Global · Tax-Efficient

GIFT City

GIFT City is India’s first International Financial Services Centre — a special economic jurisdiction in Gandhinagar with its own unified regulator, IFSCA, where everything is transacted in foreign currency. Indian regulation, dollar-denominated assets.

IFSCA describes the purpose as onshoring the offshore: offering the regulatory comfort of New York, London, Singapore or Dubai while letting investors engage with the Indian economy efficiently. Banking, exchanges, funds, bonds and insurance all operate there in foreign currency.

For a family whose future spending is partly in dollars — education abroad, a property overseas, retirement outside India — that currency match is the whole point. NRIs and OCIs invest foreign currency they already hold; residents can participate through the Liberalised Remittance Scheme.

Illustrative growth
IFSCA Regulator
Regulator
IFSCA
Currency
USD / EUR / GBP
Access
NRI, OCI & Resident
Residents via
LRS $250k/yr
Risk ProfileModerate
Regulated by IFSCA India’s unified International Financial Services Centres Authority
The jurisdiction

What GIFT City actually is

GIFT City — Gujarat International Finance Tec-City — sits in Gandhinagar, Gujarat. Inside it is India’s first International Financial Services Centre, a special economic jurisdiction with its own unified regulator, IFSCA.

Its stated purpose is to “onshore the offshore”: to offer the regulatory comfort of New York, London, Singapore or Dubai, while letting investors engage with the Indian economy more efficiently. Everything inside it is transacted in foreign currency.

For an Indian family whose future spending is partly in dollars, that combination — Indian regulation, foreign currency — is the whole point.

Location
Gandhinagar, Gujarat
Regulator
IFSCA (unified)
Currency
USD, EUR, GBP
Exchanges
India INX & NSE IX
Trading window
~22 hours a day
Purpose
Onshore the offshore
Eligibility

Who can invest through GIFT IFSC

It is not only for NRIs. Residents have a route too — the paperwork and the limits differ.

Foreign currency

NRIs & OCIs

Invest from abroad in USD, EUR or GBP without routing money through the domestic Indian system. No LRS limit applies — you are investing foreign currency you already hold.

Limit
No LRS cap
Via LRS

Resident Indians

Residents can invest through the Liberalised Remittance Scheme, which permits remittance of up to USD 250,000 per person per financial year for permissible transactions.

Limit
USD 250,000 / year
Structures

Businesses & family offices

Corporates and family offices use GIFT IFSC for treasury, external commercial borrowings, fund structures and captive insurance.

Limit
Case by case
The menu

What you can hold there

Banking, markets, funds, bonds and insurance — all denominated in foreign currency.

Foreign currency banking

Banks operating IFSC Banking Units offer accounts and deposits in USD, EUR and GBP, plus faster and cheaper international remittances than traditional correspondent-banking channels.

Global & Indian equities

The IFSC exchanges — India INX and NSE IX — give access to Indian and global equities, ETFs and debt in foreign currency. They operate roughly 22 hours a day, so you can trade from almost any time zone.

Funds: retail schemes, PMS and AIFs

Mutual fund schemes, portfolio management services and Alternative Investment Funds registered in GIFT IFSC, offering exposure to Indian private equity, real estate and infrastructure as well as global markets.

Bonds

Rupee-denominated instruments such as Masala Bonds issued by Indian corporates, plus a growing green and sustainable bond segment.

Dollar-denominated insurance

Insurers based in GIFT IFSC offer term life, health and annuity products denominated in foreign currency — useful when your liabilities are not in rupees.

Treasury & borrowing

External Commercial Borrowings and treasury services for those running businesses, typically at lower cost than onshore alternatives.

Tax position

Where the tax advantage actually sits

Real, but narrower than the marketing suggests. Here is the accurate version.

No Securities Transaction Tax

STT does not apply to trades on GIFT IFSC exchanges, unlike the domestic Indian market.

No Commodities Transaction Tax

CTT is likewise not applicable in GIFT IFSC.

Capital gains exempt or reduced

For NRIs investing or trading on GIFT IFSC exchanges, long-term and short-term capital gains tax are exempt or significantly reduced, depending on the instrument.

No GST on offshore services

Financial services rendered to non-residents are exempt from GST, which lowers the cost of managing an international portfolio.

Ten-year tax holiday for entities

Units operating from GIFT IFSC enjoy a 10-year tax holiday out of a block of 15 years — which is why fund structures are domiciled there.

“Tax-free” is not accurate. These reliefs apply within the IFSC. Your liability in your country of residence is a separate question — particularly if you live somewhere that taxes worldwide income, such as the USA. Claiming relief under a double-taxation treaty normally requires a Tax Residency Certificate. This is general information, not tax advice; ILNB Group does not provide tax advice.
Ticket sizes

What it takes to start

Product
Indicative minimum
Note
Retail fund schemes
from ~USD 5,000
Opened up to smaller investors from late 2025
Portfolio Management Services
USD 75,000
Reduced by IFSCA in February 2025
Alternative Investment Funds
USD 75,000–150,000
Threshold revised recently — confirm current level
Foreign currency deposits
Bank-specific
Set by the individual IFSC Banking Unit

Indicative figures only. IFSCA has revised several thresholds recently and they may change again — confirm the current minimum before planning around a number.

Getting started

Four steps, mostly done remotely

1

Open a foreign currency account

Approach the IFSC unit of a bank to open an account. This is separate from any domestic NRE or NRO account and is denominated in foreign currency.

2

Onboard with an IFSCA-registered intermediary

Register with a broker or fund manager licensed by IFSCA. Remote video KYC is available, so most investors complete onboarding without travelling to India.

3

Choose your products

From deposits and ETFs through to retail fund schemes, PMS and AIFs. What fits depends on your currency of future spending, your horizon and your ticket size.

4

Confirm your tax position

GIFT IFSC advantages are real, but your personal position depends on where you are resident — particularly if you live in a country that taxes worldwide income, such as the USA. Speak to a tax adviser before committing.

Before you transfer money

Check the firm in IFSCA’s own register

IFSCA publishes a public register of every regulated entity — banks, brokers and fund managers. It also carries a standing warning about financial scams and impersonation in this space.

Look any firm up there before money moves, including ours. A genuine adviser will encourage you to check rather than ask you to take their word for it.

Open the IFSCA Register

Deal only with IFSCA-regulated entities

Banks, brokers and fund managers must be licensed. If a firm is not listed, walk away.

Be wary of assured-return claims

No regulated GIFT IFSC product guarantees a return. Assured-return promises are the clearest signal of a scam.

Remote onboarding is normal

Video KYC is permitted. Nobody legitimate needs your passwords, OTPs or net-banking credentials.

Common questions

Frequently asked questions

GIFT City — Gujarat International Finance Tec-City — is located in Gandhinagar, Gujarat. Within it sits India’s first International Financial Services Centre, a special economic jurisdiction governed by a single unified regulator, the International Financial Services Centres Authority (IFSCA). Its stated purpose is to “onshore the offshore”: to offer the regulatory comfort of London, Singapore or Dubai while letting investors engage with the Indian economy efficiently.
Currency. If your future spending is in dollars — education abroad, a property overseas, retirement outside India — then holding rupee assets exposes you to depreciation between now and then. GIFT IFSC lets you hold foreign-currency assets under Indian regulation, so the asset and the liability are in the same currency.
Both. NRIs and OCIs invest in foreign currency they already hold, with no LRS limit. Resident Indians can invest through the Liberalised Remittance Scheme, which permits up to USD 250,000 per person per financial year. The route and the paperwork differ, so tell us which applies to you.
No — and treat anyone who says so with caution. Securities Transaction Tax and Commodities Transaction Tax do not apply, GST does not apply to services rendered to non-residents, and capital gains for NRIs on IFSC exchanges are exempt or significantly reduced depending on the instrument. But your liability in your country of residence is a separate question entirely, especially for US taxpayers. A Tax Residency Certificate is normally required to claim relief under a double-taxation treaty.
Retail fund schemes in GIFT IFSC start from around USD 5,000. PMS requires USD 75,000 following IFSCA’s February 2025 revision, and AIF thresholds have also been revised recently. Minimums move, so confirm the current level before you plan around a number.
No. IFSCA permits remote video KYC, and most NRI clients complete account opening and onboarding entirely from where they live.
IFSCA publishes a public register of every regulated entity — banks, brokers and fund managers. Before you transfer money anywhere, look the firm up there. IFSCA itself carries a standing warning about financial scams and impersonation, and we would rather you verified us than took our word for it.
We help you work out whether a GIFT IFSC allocation belongs in your plan at all, match the structure to the currency of your future goals, coordinate account opening and onboarding with IFSCA-registered entities, and review the allocation with you periodically. We are not the fund manager or the bank — those are separately regulated entities you contract with.
Risk disclosure. Investments made through GIFT IFSC are subject to market and currency risk, and returns are not guaranteed. Foreign-currency investments carry exchange-rate risk relative to the rupee. Product availability, minimum ticket sizes and tax treatment are set by IFSCA and by the regulated entity concerned, and are subject to change. Information on this page is drawn from IFSCA’s published material and is general in nature — it is not investment, legal or tax advice. ILNB Group facilitates access to IFSCA-regulated entities; your contract is with those entities.
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