Hey NRIs, are you looking to invest in India without the hassle of converting your dollars into rupees, dealing with conversion fees, or navigating tricky repatriation rules?
Gujarat International Finance Tec-City (GIFT City) is emerging as an alternative investment destination for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). It offers access to both global and Indian investment products within a dollar-denominated, tax-efficient ecosystem.
Here's a look at the investment options, tax benefits, and the process to get started.
Why should NRIs and OCIs consider GIFT City over traditional India investment avenues?
GIFT City allows NRIs and OCIs to invest in India through an international financial centre without routing investments through the traditional domestic framework.
Since investments are made in US Dollars (USD), there is no need to convert money into Indian Rupees before investing.
The main constraint is the LRS limit of $250,000 per individual per financial year. Since this cap is cumulative across all LRS purposes, including investments, travel, education and gifts, investors should factor in their total foreign remittances when planning overseas investments.
“It provides access to a wide range of investment products such as mutual funds, AIFs, global stocks, ETFs, and GIFT Nifty. The platform is regulated by the International Financial Services Centres Authority (IFSCA), ensuring a safe and transparent investment environment,” says Niteen Dongare, Director & CEO, Anand Rathi International Ventures IFSC Pvt Ltd.
Investors also benefit from lower transaction costs, as there is no Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), or GST on transactions. There is no stamp duty, or exchange turnover charges on eligible products either, he adds.
Investors can also repatriate both capital and returns without limits.
“Investors can fund from and withdraw to a foreign bank account or an NRE/NRO account, without the friction that applies to some domestic instruments,” says Ankur Choudhary, CEO and Co-Founder at Belong.
