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)
Table of Content
What is GIFT City?
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 886 acres and is planned to expand to 3,300 acres, offering 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
Why GIFT City Matters for Investors?
Key Features at a Glance
| Feature | Advantage for Investors |
| Tax Benefits | For NRIs investing / trading in GIFT IFSC exchanges, long-term and short-term capital gains tax are exempt or significantly reduced (details as per IFSCA website) |
| Ease of Doing Business | No need for India jurisdiction Demat or bank accounts; streamlined fund setup. |
| Seamless Transactions | Direct remittances in USD and permissible foreign currencies. |
| Unified Regulations | Simplified fund management regulations issued by IFSCA. |
| Infrastructure | Expanding modern ecosystem designed for global operations. |
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
Who Should Consider GIFT City Investments?
GIFT City funds may be suitable for:
NRIs and OCIs who want to invest in India without complex regulatory regimes.
Foreign investors looking for India-linked opportunities.
Non-Individuals from FATF-compliant jurisdictions seeking cost-efficient structures.
Not eligible: Indian residents, investors from USA/Canada, and FATF-blacklisted/grey-listed countries.
Tata Asset Management Private Limited at GIFT City
With over 30 years of expertise in managing funds across equity, debt, commodities, and thematic strategies, Tata Asset Management Private Limited has established its presence in GIFT City through its IFSC Branch.
Registered as a Fund Management Entity (Retail) with IFSCA.
Offers cross-border investment solutions tailored for global investors.
Spotlight: Tata India Dynamic Equity Fund (IFSC – GIFT City)
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
How to Invest in GIFT City Funds?
Onboarding
Submit KYC and application forms via CAMS (physical or digital ecosystem).
Zero-balance account created upon verification.
Funding
Remit funds directly from a foreign bank account in USD
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.
FAQs on GIFT City Investments
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%).
Conclusion
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.
Disclaimer:
The views expressed in this article are personal in nature and is in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Please consult your Advisor/ Distributor before investing. Tata Asset Management Private Limited will not be liable in any manner for the consequences of the action taken by you. The views expressed in this article may not reflect in the scheme/ fund portfolios of Tata Asset Management Private Limited. The view expressed are based on the current market scenario and the same is subject to change. There are no guaranteed or assured returns under any of the scheme of Tata Asset Management Private Limited.
*Mutual Fund Investments are subject to market risks, please read all scheme related documents carefully.
