GIFT City: India’s Global Gateway for Investments

India has emerged as one of the world’s fastest-growing economies, powered by a young population, digital transformation, urbanization, and strong reforms. As global investors look to participate in this journey, GIFT City (Gujarat International Finance Tec-City) can play a pivotal role.

Source: Press Information Bureau (PIB)

Established under the SEZ Act, 2005, GIFT City is India’s first International Financial Services Centre (IFSC). It serves as a hub for cross-border financial services, offering international investors a seamless way to access India’s growth story with world-class infrastructure and a globally aligned regulatory framework.

Source: The International Financial Services Centres Authority (IFSCA)

GIFT City, or Gujarat International Finance Tec-City, is India’s first International Financial Services Centre (IFSC), established by the Government of India as a gateway for global finance. Located in Gujarat, it spans over 29 million square feet and has 1,000+ operational entities (Source: GiftGujarat.in). The hub offers modern infrastructure and world-class facilities. 
Designed as a duty-free financial hub, GIFT City is comparable with leading centres like Singapore, Dubai, and London. It operates under the unified regulatory framework of the International Financial Services Centres Authority (IFSCA), which ensures simplified compliance, investor-friendly tax policies, and ease of doing business.
Source: Gujarat International Finance Tec-City Company Limited - GIFT Gujarat

Key Features at a Glance

GIFT City vs Other Global Financial Hubs

GIFT City is positioned to compete with international hubs such as Singapore, London, and Dubai. Its advantages include:

• Comparable tax benefits and regulatory simplification.

• Closer proximity to India’s onshore market, aiming to offer efficiency in fund operations.

• Growing ecosystem of fund managers, banks, and financial institutions.

Tax Advantages for Non-Resident Investors

One of the key benefits of GIFT City is its investor-friendly tax regime.

• Reduced capital gains tax on mutual funds, fixed income, and derivatives.

• No compulsory PAN or tax return requirement in India if income is only from IFSC funds.

• No GST on offshore clients and fund management fees.

• Simplified tax treatment for foreign investments in both Indian and global securities.

* Taxation of the fund and taxation of investors of the fund are subject to regulatory changes from time to time

GIFT City offers an investor-friendly tax framework for eligible non-resident investors through various incentives available under the Income Tax Act and the IFSC regime. 

Depending on the nature of the investment and applicable regulations, investors may benefit from tax exemptions or concessional tax treatment on specified IFSC investments. Certain eligible investors may also qualify for relief from obtaining a PAN or filing an income tax return in India, subject to prescribed conditions. 

In addition, GST benefits are available for specified fund management services provided to qualifying offshore clients. As tax laws are subject to change, investors should consult their tax advisers before investing. (Source: IFSCA.Gov.in)
* Taxation of the fund and taxation of investors of the fund are subject to regulatory changes from time to time

Investment Objective

To generate long-term capital appreciation by investing primarily in mutual funds and ETFs in India and other jurisdictions.

• Allocation: 90%–100% of AUM in Investee Funds; up to 10% in short-term investments (as per offer document).

Key Features

• Type: Open-ended scheme registered under the IFSCA (Fund Management) Regulations, 2025.
• Minimum Investment: USD 500.
• Dynamic Allocation:
  • 50–100% in diversified market-cap based funds.
  • 0–50% in thematic and sectoral funds.
• Inbound Feeder: Structured to invest in Indian mutual fund schemes and ETFs.

India’s Strong Growth Drivers (Why it Matters)

• Demographic Advantage: Largest youth population with median age of 28 years.
• Digital Transformation: #1 globally in real-time digital payments.
• Urbanization: 43% of Indians expected to live in cities by 2035.
• Formalization of Economy: GST and digital compliance expanding formal sector.
• Economic Resilience: Consistent GDP growth of 6–7% and robust forex reserves

Sources: EY,  PIB,  The Hindu and Ministry of Finance

India's Strong Growth Drivers (Why it Matters)

• Demographic Advantage: Largest youth population with a median age of 28.4 years. (Source: EY)
• Urbanization: 43.2% of Indians are expected to live in cities by 2035. (Source: The Hindu)
• Formalization of Economy: GST and digital compliance are expanding the formal sector.

Economic Resilience: India's latest GDP growth for the FY 2025-26 shows a real GDP growth of 7.8% (in the fourth quarter), with nominal GDP growth of 9.1%. (Source: PIB)
 

1. Onboarding

   • Submit KYC and application forms via CAMS (physical or digital ecosystem).

   • Zero-balance account created upon verification.

2. Funding

   • Remit funds directly from a foreign bank account in USD

3. Unit Allotment

   • On receipt of funds, units are allotted, and a Statement of Account (SOA) is issued.

      

KYC Requirements (For Individuals)

• Identity Proof: Passport, National ID, Driving License, or Voter ID.

• Address Proof: Passport, Tax ID with photo, Driving License, or Utility Bill.

• Documents must be certified by authorized entities such as banks, notaries, or consulates in FATF-compliant jurisdictions.

Q1. What makes GIFT City unique compared to traditional investment routes?

It offers simplified access, tax efficiency, and direct participation in India’s growth without requiring local bank or Demat accounts.

Q2. Do investors need to file tax returns in India for GIFT City investments?

No. If Non-resident investors are earning income solely from IFSC-based funds, they need not file tax returns in India.

Q3. Can Indian residents invest in GIFT City funds?

No. the Current scheme is designed only for non-residents and investors from FATF-compliant jurisdictions, excluding USA and Canada.

Q4. What is the minimum investment amount for Tata India Dynamic Equity Fund (GIFT City)?

The minimum Investment amount is USD 500.

Q5. How are funds allocated within the Tata India Dynamic Equity Fund?

The fund shall allocate 90%–100% of AUM in Investee Funds and up to 10% in short-term investments (as per offer document). However, the fund shall dynamically allocate across broad-based equity funds (50–100%) and sectoral/thematic funds (0–50%).

6. What is GIFT City investment in India?

GIFT City (Gujarat International Finance Tec-City) is India's first International Financial Services Centre (IFSC). It allows eligible international investors to access “India-focused” investment opportunities. 

Also, GIFT City provides several special incentives, such as tax exemptions, holidays, and grants to attract both industries and investors. 

7. How to invest in GIFT City mutual funds in 2026?

Eligible investors may first compare different GIFT City mutual funds offered by various AMCs and choose one that aligns with their financial goals and risk appetite. Next, complete the required KYC process and submit the investment application through the authorised onboarding platform.

Once verification is complete, a “zero-balance” account is generally created. The investment amount is then remitted directly from a foreign bank account in permitted foreign currencies, such as USD. After the funds are received, units are allotted, and a Statement of Account (SOA) is issued.

8. Can Indian residents invest in GIFT City funds?*

As per general industry understanding, Indian residents are not eligible to invest. These funds are primarily designed for:

• Non-Resident Indians (NRIs)
• Overseas Citizens of India (OCIs)
• Eligible foreign investors, and 
• Certain non-individual investors from FATF-compliant jurisdictions

Besides, investors from the USA and Canada may also be excluded.

9. How to invest in Tata India Dynamic Equity Fund (GIFT City)?

To invest in the Tata India Dynamic Equity Fund, eligible investors may:

• Complete their KYC
• Submit the application through the designated onboarding process, and 
• Remit the investment amount from a foreign bank account in USD

The minimum investment amount is USD 500. Once the funds are received and verified, units are allotted, and the investor may receive a Statement of Account (SOA).

GIFT City represents a new chapter in India’s financial ecosystem—a world-class platform connecting global investors with India’s growth potential. With simplified compliance, attractive tax benefits, and robust regulatory oversight, it may become a preferred choice for NRIs and foreign investors.

Tata Asset Management Private Limited, with its legacy of trust and expertise, is at the forefront of this transformation through offerings like the Tata India Dynamic Equity Fund.

For global investors seeking seamless participation in India’s growth story, GIFT City could open the gateway.

The views mentioned above are for information & educational purposes only and do not construe to be any investment, legal, or taxation advice. Investors must do their own research before investing. The views expressed in this article are personal in nature and in is no way trying to predict the markets or to time them. Any action taken by you on the basis of the information contained herein is your responsibility alone, and Tata Asset Management Pvt. Ltd. will not be liable in any manner for the consequences of such action taken by you. Please consult your Mutual Fund Distributor before investing. The views expressed in this article may not reflect in the scheme portfolios of Tata Mutual Fund. There are no guaranteed or assured returns under any of the schemes of Tata Mutual Fund.