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GIFT City Advantage: Accessing India’s Growth Story with Global Rails & Flexibility
Seamless, tax-efficient channel to participate in India's venture capital and private equity ecosystem.
Published On : 14 Jan 2026
Global Investors and NRIs stand to gain immensely from investing in India via Alternate Investment Funds (AIFs) set up in Gujarat International Finance Tec-City (GIFT) within the International Financial Services Centre (IFSC). These funds offer a streamlined, tax-efficient gateway to India's booming venture capital (VC) and private equity (PE) ecosystems, bypassing many onshore complexities.
Why GIFT City Appeals to NRIs
GIFT City, India's premier IFSC, functions like a foreign jurisdiction with liberalized rules under IFSCA regulations. NRIs can invest in USD or other foreign currencies, repatriate profits freely, and tap into over 200 AIFs focused on high-growth sectors like startups, infrastructure, and real estate—all without FEMA hurdles or INR conversion mandates.
This setup empowers Global Investors and NRIs to own 100% of Category I and II AIFs, ideal for family offices chasing Indian unicorns while enjoying global flexibility.
Key Tax* Efficiencies
Tax perks make GIFT City a standout choice over mainland India.
Dividends face just 10% withholding tax, versus up to 20% plus cess onshore.
Capital gains on derivatives, listed bonds, and certain securities are exempt for non-residents.
Interest from IFSC units is tax-free, with no STT, stamp duty, or PAN needed if taxes are withheld at source—skipping ITR filings.
These savings compound for long-term PE/VC plays in India's $5 trillion economy growing rapidly.
Seamless Access to VC and PE Opportunities
GIFT AIFs provide "clean" inbound investments into domestic startups and PE deals, mirroring foreign fund structures. Lower Minimums ranging from US$ 40,000 onwards, suiting Global Investors and HNIs seeking diversified exposure to sectors like fintech, EVs, and renewables.
Unlike mainland AIFs, NRIs avoid ownership caps and currency risks, blending Indian alpha with offshore ease.
Mainland vs. GIFT City: A Quick Comparison
Getting Started as an NRI / Global Investors
Open an IFSC banking account and LRS-compliant remittance for quick onboarding. Partner with SEBI/IFSCA-registered managers for vetted funds—returns often outpace global peers amid India's 7%+ GDP growth. GIFT City turns NRI capital into a strategic edge for India's growth narrative.
*Not Investment Advice & for general info purposes only. Rules & interpretations may vary. Do Consult specialist advisors.