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GIFT City Investment in India Guide for NRI Investors Abroad

Key Takeaways

GIFT City is an ambitious Indian project that aims to catapult the city to a global financial hub.
GIFT City investments promise excellent tax perks and a seamless investment and banking experience.
World-class infrastructure and global exchanges are adding to the GIFT City investment advantages.
GIFT City presence and tailor-made NRI banking solutions make IDFC FIRST Bank ideal for NRI investors.

13 Jan 2026 by Team FinFIRST

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GIFT City investment has been the buzzword in India for a while now. The Gujarat International Finance Tec-City has emerged from a concept stage in 2007 to become India’s leading smart city. Built to rival the global financial centres like Singapore, London and New York, GIFT City bears a vibrant landscape today, with plush office complexes, residential blocks, and all civic amenities that a smart city needs.

Regulated by the International Financial Services Centres (IFSC) Authority, GIFT City is India’s first IFSC and is located near Gandhinagar in Gujarat. Due to its combined status as a Special Economic Zone (SEZ) and a Domestic Tariff Area (DTA), GIFT City investment is highly incentivised and holds a lot of benefits to everyone, including Non-Resident Indians (NRIs).

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Frequently Asked Questions

What can you do with an NRI account?

An NRI bank account is specially designed to cater to the needs of NRIs. With an NRI account, you can seamlessly send money from abroad, repatriate funds from India, make investments, avail of loans and insurance, conduct a wide range of financial transactions, etc.

Can I open an NRE and NRO account at the same bank?

Yes, you can open both accounts at the same bank.

Can I convert a regular savings account to an NRE account after becoming an NRI?

No, your regular savings account can only be converted to an NRO account. If you need an NRE account, you must open a new one.

GIFT City investment for NRIs

Cities like Singapore and Dubai have long acted as hubs for companies for financial and transaction services. GIFT City investments aim to replicate the same through world-class amenities and infrastructure, a favourable tax regime and ease of doing business.

Investing in India has always been a lucrative prospect for NRIs. GIFT City enhances this even further with a host of investment benefits, many of which are of great importance to the NRI investor.

1. GIFT City Tax Benefits

1. There is a 100% tax exemption on incomes earned in the GIFT City for 10 years out of a 15-year block, under section 80LA of the Income Tax Act

2. Transactions executed on the GIFT City exchanges, i.e., India INX and NSE IFSC, are exempt from securities transaction tax, commodities transaction tax and stamp duty

3. No capital gains tax is charged on specified securities that are listed in the IFSC exchanges. Even the capital gain tax on non-specified securities has concessional rates

4. No dividend distribution tax is applicable on companies in GIFT City, Gandhinagar

5. Dividend and interest income earned by NRIs from a GIFT City fund is exempt from tax in India

6. Dividend and interest income earned from IFSC units is tax-free in India

7. A concessional Minimum Alternate Tax of 9% is applicable on companies operating in GIFT City, except for certain companies

8. Interest earned by NRIs on loans given to GIFT City units is outside the purview of tax in India

9. GST is either exempt or relaxed for GIFT City units, as well as service providers and offshore clients to GIFT City units

2. Access to Global-Style Exchanges

GIFT City has set up international stock exchanges that facilitate the trading of Indian and global securities. India INX is suggested to be one of the most advanced technology platforms in the world, with a turnaround time of 4 microseconds. GIFT City exchanges conduct the trading of international securities, commodities, currency, bonds and more.

The platform gives NRIs a globally aligned trading experience, like Wall Street, for instance, and allows them to invest in instruments from around the world, as well as India. This allows NRIs to diversify globally without routing investments only through foreign banks or brokers.

What are some of the best bond options in GIFT City?

1. Foreign currency bonds

Bonds denominated in foreign currencies like USD, Euro, GBP and SGD

2. Green or ESG Bonds

Bonds that finance environmentally sustainable projects like renewable energy and sustainable infrastructure

3. Dollar bonds

Standard USD bonds listed in GIFT IFSC

4. Corporate bonds

Bonds issued by Indian and foreign companies through Gift City exchanges

3. Ease of Investing

Ease of investing in GIFT City emanates from the involvement of a single regulator – the IFSC Authority. This eliminates the multi-agency approvals applicable in India, like RBI, SEBI and IRDAI. Through funds, Alternative Investment Funds (AIFs), and asset managers based in GIFT City, NRIs can invest in Indian startups, infrastructure, real estate funds, and private equity.
The best part?

4. Ease of banking

NRIs can open foreign currency accounts in banks that have a GIFT City presence, like IDFC FIRST Bank. The constant need to convert currencies, leading to forex losses, is not required in GIFT City banking. International remittances involving GIFT City are comparatively faster than the rest of India as well.

Where to invest in GIFT City?

While the advantages of GIFT City investments are obvious, NRIs also have a plethora of investment choices to choose from. Some of the tempting GIFT City investment opportunities for NRIs include:

1. Capital market investments

GIFT City has a wide range of capital market investment avenues. They include equity investments, commodities, equity derivatives, debt instruments, currency, exchange derivatives, depository receipts, etc.

Consequently, NRIs can find themselves investing in permitted securities like foreign and Indian Rupee-denominated bonds, Global Depository Receipts, mutual funds, business trust units, alternate investment funds, and foreign currency-denominated equity shares.

NRIs can also choose a portfolio management service (PMS) for investments through a designated fund manager. PMS in GIFT City investments includes financial assets and securities listed in the GIFT City exchanges, instruments issued by GIFT City companies and other companies incorporated in India or overseas.

2. Offshore and alternative investment opportunities

GIFT City hosts firms that have established offshore funds and AIFs, which raise foreign investor capital and invest the same across various asset classes. As of June 2025, 177 fund management entities and 270 funds are registered in GIFT City. This includes AIFs across categories I, II and III that are operating with US dollar-denominated structures in GIFT City.

3. Banking with IBUs

The presence of IFSC Banking Units (IBUs) like IDFC FIRST Bank has ensured that you can open and operate foreign currency bank accounts with ease in GIFT City. The IBUs also offer trade finance, project finance, and loan syndication opportunities, as well as foreign currency loans and factoring services.

4. Bullion investing

By establishing the India International Bullion Exchange (IIBX), GIFT City has made it possible for NRIs and other investors to carry out transparent bullion trades in foreign currency.

These GIFT City investment opportunities are complemented by a versatile range of professional services, including accounting, audit, legal, risk advisory, compliance, research, analytics, portfolio services, and a host of other NRI-focused services.

Banking in GIFT City

NRI investors choosing the right IBU, such as IDFC FIRST Bank, can quickly streamline their financial ventures when they invest in GIFT City. The bank accounts are designed to cater to the GIFT City-specific banking requirements of the NRI investor. Likewise, IBU deposits adhere to the deposit policy framed by the IFSC Authority. The different types of accounts that an NRI can opt for in GIFT City include,

1. Current accounts, which can also earn interest income, but have restricted withdrawals depending on the account balance

2. Savings accounts, which are interest-bearing demand deposits with restrictions on the number of withdrawals

3. Floating rate deposits with benchmark-linked interest income

4. Notice deposits that are for a fixed period but withdrawable upon a full banking days’ notice

An individual can open a savings, current and term deposit account in GIFT City in any specified foreign currency. Non-individuals can do the same in the case of current and term deposit accounts.

How to invest in GIFT City with IDFC FIRST Bank

IDFC FIRST Bank unlocks the GIFT City investment advantage to NRI investors with its IBU-specific products. NRIs can open bank accounts with IDFC FIRST Bank and with an online-first experience.

1. GIFT City Fixed Deposits

IDFC FIRST Bank NRI customers can also invest in the high-yield GIFT City Fixed Deposits. This IDFC FIRST Bank’s tax-efficient term deposit is tailor-made for foreign currency deposits in GIFT City, and is available in a wide array of tenures, starting from 7 days to 5 years. The principal and interest are fully repatriable, and of course, income from it is tax-free in India.

2. Transaction services

NRI customers get cash, TOM, and SPOT transaction options on foreign currency transactions.

3. Forex forward services

Currency conversion is made cost-efficient and easy with FX Forwards, including Non-Deliverable Forwards. Customers can exchange one currency with another at an agreed rate and settlement rate.

Moreover, with IDFC FIRST Bank NRI Banking Services, you can enjoy various benefits, like:

1. A single window clearance within the regulatory purview of the IFSC Authority

2. Easy handling of bank accounts and transactions with foreign currency

3. One-stop solution for banking, deposits and trade financing solutions

4. Dedicated relationship manager support and dedicated NRI support

5. Access to premium wealth management services with IDFC FIRST Bank

Why choose banking in GIFT City

1. No Indian Rupee restriction

2. Freely repatriable on demand Tax-free interest income on deposits in India

3. Parking foreign currency for better interest rates as compared to the banks overseas

4. Easier access to global investments

Getting started with IDFC FIRST Bank

To start your NRI Banking journey with IDFC FIRST Bank IBU, follow these steps:

1. Visit the IDFC FIRST Bank IBU page and fill out the account opening form to open your FIRST Global Savings account

2. Documents required for the FIRST Global Savings Account include a copy of a valid passport, a Visa/OCI/PIO card, overseas address proof, PAN or a declaration in place of it

3. Complete the video or in-person KYC

4. Fund the account with a foreign currency remittance

5. Get account activation confirmation, along with details like account number, internet banking and mobile banking credentials and welcome kit

Unbox the world of GIFT City investments

With IDFC FIRST Bank, you can bank, invest, and grow seamlessly in GIFT City without tax hassles or FEMA restrictions. Open a foreign currency account, explore tax-free deposits, and access world-class investment opportunities — all designed for you. Explore the world of GIFT City investments with IDFC FIRST Bank GIFT City, today!

Frequently Asked Questions

Is GIFT City only for financial companies?

No. While GIFT City investment is popular among financial firms, companies in GIFT City Gandhinagar also include IT services, fintechs, startups, and global service providers benefiting from SEZ and IFSC advantages.

Can I invest in real estate within GIFT City?

Currently, NRIs cannot directly invest in residential property in GIFT City. However, you can explore GIFT City investment opportunities via real estate funds, AIFs, or infrastructure-focused projects.

Are startups eligible to raise funds from GIFT City?

Yes. GIFT City offers global fundraising avenues. Startups can raise capital through AIFs, private equity, and venture capital funds operating in the IFSC, boosting India’s entrepreneurial ecosystem.

Is bullion trading safe in GIFT City?

Yes. The India International Bullion Exchange (IIBX) ensures transparent pricing, settlement in foreign currency, and regulated processes. It makes bullion a credible GIFT City investment option for NRIs.

How secure are banking services in GIFT City?

Banks like IDFC FIRST Bank in GIFT City offer regulated, tax-efficient foreign currency accounts. You enjoy secure transactions, premium wealth management, and exclusive NRI services tailored to your needs.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.