GIFT City, or Gujarat International Finance Tec-City, is India’s first International Financial Services Centre (IFSC) designed to create a global finance, technology, and innovation hub. With over USD 20 billion in committed fund investments in FY 2024-25, it has quickly become a preferred destination for global and domestic investors. Read on to get useful insights into GIFT City investment options, benefits, and how investors can start.
GIFT City aims to position India as a global financial hub, offering an ecosystem comparable to leading international centres such as Singapore, Dubai, and London. It has two main zones: the Special Economic Zone (IFSC Zone) and the Domestic Tariff Area (Domestic Area), serving international and domestic businesses. The city is regulated by the International Financial Services Centres Authority (IFSCA), which ensures transparency and global alignment. It offers modern infrastructure, tax benefits, and access to global markets, making it a key driver of India’s growth in finance and innovation.
How GIFT City Investment Differs from Regular INR Investment?
Investing through GIFT City offers a simpler and more global approach than traditional INR-based investments in India. The table below highlights the key differences between GIFT City investing and regular INR investing:
Feature
GIFT City Investing
Regular INR Investing
Currency Conversion
Not required, investments can be made directly in USD
Mandatory: funds must be converted into INR
Bank Account
Investors can use an existing foreign bank account
Requires an NRO or NRE account in India
PAN Card
Certain NRI investors in specified IFSC funds may not need a PAN or a domestic bank account
Mandatory, often with notarisation for NRIs
Repatriation
Simple and quick, funds can be transferred freely in foreign currency
Lengthy process with several compliance steps
What Are Investment Options in GIFT City?
Different investment options are Certain non-resident investors in specified IFSC funds/structures may not need PAN or a domestic bank account; available within GIFT City, catering to NRIs, global investors, and financial institutions. Below are some of the key opportunities investors can explore:
Insurance Services: Global and Indian insurers provide life, health, and reinsurance solutions within the IFSC framework.
Banking Services: International and domestic banks operate under the IFSC framework, offering services like foreign currency accounts, offshore loans, and trade finance.
Capital Markets: Investors can trade in global equities, bonds, ETFs, and commodities through exchanges such as India INX and NSE IFSC.
Fund Management: This includes mutual funds, alternative investment funds (AIFs), and portfolio management services (PMS) regulated by IFSCA for NRIs and global investors.
Fintech and Innovation: Fintech startups and global players use GIFT City as a sandbox for cross-border financial technology solutions.
Bullion Trading: GIFT City hosts India’s first International Bullion Exchange (IIBX), enabling direct gold and silver trading in USD.
Aircraft Leasing and Financing: A fast-emerging sector that allows aircraft leasing and financing under global tax and compliance norms.
Key Benefits of GIFT City Investment
GIFT City offers several advantages, making it a preferred destination for global and Indian investors. Below are the key benefits of investing in GIFT City:
Tax-Free Gains: GIFT IFSC offers a preferential tax regime. Investors in GIFT City enjoy zero tax on business income for up to ten years, along with exemptions on certain capital gains. This makes it easier to grow wealth efficiently while benefiting India’s expanding financial ecosystem.
No Currency Conversion: Investors can invest, hold, and redeem in foreign currencies such as USD, reducing exchange rate risks. This flexibility simplifies international transactions and eliminates the need for constant currency conversion.
Ease of Access: Investing in GIFT City is simple and paper-light. No PAN card or Indian bank account is required for eligible investors, allowing easy participation for global individuals and institutions.
Global Product Access: GIFT City provides exposure to international financial products such as green bonds, dollar-denominated mutual funds, and alternative investment funds (AIFs).
Rapidly Growing Financial Ecosystem: GIFT City’s growth has been remarkable, with total banking assets exceeding USD 93 billion and monthly turnover on the IFSC exchanges reaching USD 100 billion, as of August 2025.
Unified Regulation for All Financial Services: All activities in GIFT City are governed by the International Financial Services Centres Authority (IFSCA). Instead of dealing with multiple regulators like SEBI, RBI, or IRDAI, investors and companies work under one authority, ensuring smooth approvals and transparent operations.
Expanding Opportunities for Growth: GIFT City is driving growth in India’s services sector, creating opportunities for businesses, investors, and professionals. It is a platform where global and domestic players can collaborate and benefit from India’s expanding financial landscape.
Insurance Companies Providing Services in GIFT City
Several leading Indian insurers have set up operations in GIFT City to offer globally compliant insurance solutions for NRIs, HNIs, and international clients. Below are some key insurance providers operating within GIFT City:
Canara HSBC Life Insurance Company Limited
HDFC International Life and Re Company Ltd.
ICICI Lombard General Insurance Co. Ltd.
ICICI Prudential Life Insurance Company Limited
Star Union Dai-ichi Life Insurance Company Limited
TATA AIA Life Insurance Co. Ltd.
IndiaFirst Life Insurance Company Ltd.
Life Insurance Corporation of India (LIC)
Axis Max Life Insurance Co. Ltd.
SBI Life Insurance Company Ltd.
Investment Options in GIFT City
Insurance investment products focus on wealth creation, protection, and long-term financial planning within a globally regulated environment. Here are the main insurance products available through GIFT City:
Child Education Plans: Tailored for parents planning global education for their children, these plans allow systematic savings and payouts in USD. They help cover tuition and living expenses abroad without worrying about currency changes.
Annuity Plans: Annuity plans offered through GIFT City provide a guaranteed income stream after retirement. Investors can choose payout options in USD or other major currencies, ensuring steady income and financial independence anywhere in the world. These plans are ideal for those seeking stable, long-term income security.
ULIPs (Unit-Linked Insurance Plans): ULIPs in GIFT City allow investors to invest and earn in foreign currency, typically USD. They offer access to international funds and ETFs, allowing investors to grow their wealth globally while maintaining life cover. The structure is tax-efficient and designed for seamless offshore investing.
Pure Protection Plans: Term insurance plans under GIFT City can be purchased in foreign currency, providing worldwide protection without additional local documentation. These plans offer high-value coverage, making them suitable for NRIs seeking simple and secure life protection.
Retirement and Savings Plans: These long-term plans are created to help NRIs achieve retirement goals through flexible savings and income options. Premiums can be paid through foreign bank accounts, and benefits are repatriable, ensuring smooth access to funds post-retirement.
Why Buy Investment Plans Through GIFT City?
GIFT City offers insurance plans specially designed for NRIs, HNIs, and global investors. These plans combine global investment access, flexible payments, and strong protection benefits. Here are the main advantages:
Invest and Receive in USD: Pay premiums and get returns directly in US Dollars to avoid currency conversion issues.
Access Global Funds: Invest in international ETFs and fund options for wider diversification and growth.
Continuous Life Cover: Your insurance cover continues even during financial challenges, keeping your family protected.
Secure Payouts for Family: In case of an unfortunate event, your nominee receives a lump-sum payout for financial safety.
Flexible Withdrawals: Withdraw part of your savings after three years to meet urgent or short-term needs.
Easy Premium Payment Options: Choose between monthly, yearly, or one-time payments and add extra benefits as needed.
Popular Insurance Plans Offered in GIFT City by Different Insurers
GIFT City offers globally focused insurance plans from leading insurers for NRIs and international investors. Below are some of the insurance plans introduced in GIFT City that you can buy from Policybazaar.
TATA AIA Global Invest
A USD-denominated ULIP designed for both resident and non-resident Indians.
Provides global investment opportunities along with life insurance protection.
Best for portfolio diversification and overseas goals such as education or wealth creation.
Offers flexible premium payment options and allows partial withdrawals after three years.
Supports complete digital policy management without the need for physical presence in India.
Regulated by IFSCA and available for NRIs, OCIs, and PIOs.
SUD Life International Wealth Creator
A ULIP aimed at building wealth through international fund investments.
Combines life insurance cover with the option to invest and receive returns in USD.
Provides access to five curated global fund options for diversified exposure.
Includes features such as fund switching, top-up premiums, and partial withdrawals.
Allows flexibility to modify premium payments and policy tenure as per financial goals.
IndiaFirst Wealth Wise Plan
A whole-life, non-participating ULIP with USD-denominated investments.
Gives access to six international funds under one policy for balanced global diversification.
Designed for long-term wealth creation with the added benefit of lifelong insurance cover.
Invests across asset classes, combining international market opportunities with India’s economic growth.
Suitable for investors seeking steady returns and comprehensive protection in one plan.
HDFC Life Global Wealth Advantage Flexi
A unit-linked life insurance plan focused on long-term global wealth creation.
Offers diversified asset allocation and active fund management for better outcomes.
Emphasises risk-adjusted returns through a disciplined and structured investment process.
Aims to deliver consistent performance with effective risk management strategies.
Best for investors seeking stability, international exposure, and long-term capital appreciation.
Why Are NRIs Investing in GIFT City?
GIFT City offers a simple and convenient way for Non-Resident Indians (NRIs) to invest in India without the usual hassles. It removes the need for currency conversion, PAN cards, and multiple KYC documents. NRIs can invest directly in USD, use their foreign bank accounts, and easily repatriate funds whenever needed. As more companies and investors join, GIFT City is set to play an important role in shaping India’s future in global finance.
GIFT City Investments Compared Across Global Financial Hubs
GIFT City is India’s first international financial centre that aims to compete with top global hubs like Singapore, Dubai, and London. The following table shows how GIFT City compares with other financial centres on key factors:
Metric
GIFT City (India)
Singapore
Dubai (DIFC)
London
Regulation
Single regulator (IFSCA)
Multiple regulators
Separate for each sector
Complex rules
Tax Benefits
0% for 10 years
Limited
VAT applies
High taxes
NRI Offerings
Strong
Few
Limited
Very few
Currency Options
Multi-currency
Mainly USD
USD and SGD
GBP only
Key Takeaways
GIFT City in Gujarat is India’s first international financial hub that offers a smooth gateway for NRIs and global investors. It allows investments directly in USD without currency conversion or complex paperwork. The city provides access to various opportunities in banking, capital markets, fund management, and insurance. Investors enjoy major tax benefits, easy repatriation, and transparent regulation under IFSCA. Through GIFT City, insurers offer global ULIPs, annuity, and protection plans, making investing, growing, and securing wealth internationally easier. With its simplified structure and global reach, GIFT City is emerging as a key destination for modern investors.
FAQs
Q1. What makes GIFT City a unique investment destination in India?
GIFT City offers global investors a regulated, tax-friendly, and USD-based platform to invest in banking, capital markets, insurance, and fund management under one authority called IFSCA.
Q2. Can NRIs invest directly in GIFT City?
Yes, NRIs can invest directly in GIFT City using their foreign bank accounts without needing a PAN card or going through currency conversion. This makes cross-border investing easier and faster.
Q3. What are the main tax benefits of investing in GIFT City?
Investors and businesses in GIFT City can enjoy zero tax on business income for up to ten years, exemptions on capital gains, and no GST or STT on eligible transactions.
Q4. How is GIFT City different from regular Indian investments?
Unlike regular INR-based investments, GIFT City allows investment in USD, provides easy fund repatriation, and offers single-window regulation for a smooth and globally aligned experience.
Q5. How to invest in GIFT City?
Investors can start by opening an account with an IFSCA-registered bank, fund house, or insurance company in GIFT City. After completing simple KYC formalities, they can invest directly in USD across options like mutual funds, AIFs, insurance plans, or international securities.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount shown for the Global Invest Plan with Global Invest Edu-Wealth option is for a 35-year-old proposer with an 8-year-old son, investing USD 10,000 per year for 5 years. The assumed rates of return @ 8% p.a. and @ 4% p.a. are not guaranteed and are not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: USD 1,55,765 @ 8% growth rate; USD 1,14,899 @ 4% growth rate. Tax benefits and savings are subject to changes in tax laws.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
^Returns as on 10th Jan'25. 18% returns for Tata AIA Life Top 200 for the last 10 years.The past performance is not necessarily indicative of future performance. Source: Morningstar
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