What is GIFT City?
GIFT City is India’s only International Financial Services Centre — a zone on the edge of Gandhinagar where financial firms can operate in foreign currency under one Indian regulator. For investors, it is a regulated, dollar-based route to global markets that stays inside India.
What GIFT City changes for investors
Dollar-denominated
Entities in GIFT City are treated as non-resident for foreign-exchange purposes, so funds can run entirely in US dollars — your money stays in the currency you'll spend abroad.
No mutual fund overseas cap
Domestic funds share an industry-wide overseas limit (currently US$7 bn) and pause fresh money when it fills. GIFT City funds are not subject to that cap.
Tax handled by the fund
Funds pay capital-gains tax themselves and pass on the net proceeds, so you don't have to work out gains on every holding.
Generally outside US estate tax
The fund owns the US shares and you own fund units, which generally keeps investors outside US estate tax (18%–40% above USD 60,000 on direct holdings).
Indian regulation
Every fund is registered with and supervised by the IFSCA — a regulated route, not an offshore account.
Open to all investors
Retail schemes are open to any resident investor, with minimums set by each fund — far below the USD 150,000 needed for AIFs.
GIFT City, answered
The practical questions investors ask most before their first GIFT City investment.
Is GIFT City in India?
Yes. GIFT City (Gujarat International Finance Tec-City) is on the edge of Gandhinagar, Gujarat. Entities in its International Financial Services Centre are treated as non-resident for foreign-exchange purposes, which lets funds there operate in US dollars — but they remain under Indian law and Indian regulation.
Who regulates GIFT City funds?
The International Financial Services Centres Authority (IFSCA) — a single, unified regulator for banking, capital markets, insurance and pensions inside the IFSC.
How do I send money to a GIFT City fund?
Through the RBI's Liberalised Remittance Scheme (LRS), which allows up to USD 250,000 per person per financial year. Your bank converts rupees to dollars and remits them to the fund. Investment remittances above ₹10 lakh a year (counted across all your LRS remittances) attract 20% TCS, which you can adjust against your income tax.
What is the difference between a retail scheme and an AIF?
Retail schemes are open to any resident investor, with minimums set by each fund. Restricted Category III AIFs usually need USD 150,000 or more (less for accredited investors), and are often close-ended or carry lock-ins (24 months is common).
Who pays tax on the gains?
Retail GIFT City schemes pay capital-gains tax at the fund level and reflect it in a post-tax NAV, so you don't calculate gains on each underlying holding. Category III AIFs are also taxed at the fund level, though the rules differ by structure. Your own position depends on your circumstances — check with a tax adviser.
Does US estate tax apply?
Investing directly in US shares can expose your heirs to US estate tax of 18%–40% on US assets above USD 60,000. In a GIFT City fund, the fund owns the US shares and you own units of the fund, which generally keeps investors outside the US estate-tax net. The exact position depends on each fund's structure.
Ready to see what you can invest in?
Compare every GIFT City outbound fund — strategy, minimum, fees and exit terms.