GIFT City Investment: How India’s Elite Are Accessing Global Markets — And How You Can Too

Key Takeaways –

• GIFT City investment provides a tax-efficient, regulated gateway for Indian HNWIs and UHNIs to access global markets from Indian soil.
• Traditional offshore routes suffer from RBI remittance caps, regulatory complexity, and compliance burdens.
• Through the Overseas Portfolio Investment (OPI) route, family offices can invest up to 50% of their net worth globally via GIFT City.
• GIFT City offers simplified compliance via IFSCA, international-grade infrastructure, and currency conversion ease.
• Tax benefits include capital gains exemptions and a 10-year tax holiday for fund managers operating in GIFT.
• GIFT City is now home to 80+ fund managers managing over $30 billion, with offshore investments crossing $778 million in H2 2024 alone.
• Aequitas India Trust, a GIFT City AIF, gives global investors direct access to Indian equity with structural and tax advantages.
• For Indian investors looking to globalize portfolios legally and efficiently, investing in GIFT City is no longer optional — it’s essential.

Why GIFT City is Becoming India’s Global Investment Gateway

India’s ultra-wealthy are no longer just asking whether to diversify globally — they’re asking how fast. And increasingly, the answer is GIFT City investment.

With the Indian rupee having depreciated nearly 40% against the dollar over the past decade, the need to hedge currency risk and preserve global purchasing power has never been greater. But traditional offshore investing came with complications: low remittance limits, grey regulatory zones, and cumbersome compliance.

Enter GIFT City. Backed by the Government of India and regulated by the International Financial Services Centres Authority (IFSCA), GIFT City offers a seamless, compliant, and tax-efficient gateway to global assets from Indian soil.

The Problem: Why Traditional Offshore Investing Falls Short

Despite the clear advantages of holding dollar assets, Indian investors have historically faced major hurdles in accessing offshore funds:

• Severe Remittance Caps: RBI’s LRS limits individuals to $250,000 per year, making meaningful offshore diversification difficult.
• Complex Structuring: Investments via ODIs or direct foreign routes involved regulatory gray areas and execution issues.
• Heavy Compliance Burden: TCS, FEMA, and foreign reporting requirements made the process daunting.
• Limited Access: Domestic institutions lacked the infrastructure to facilitate global investing at scale.

These limitations kept most Indian UHNIs and family offices from fully capitalizing on offshore fund opportunities.

GIFT City Investment: India’s Gateway to Global Wealth Structuring

Enter Gujarat International Finance Tec-City (GIFT City) — India’s answer to global wealth management. Backed by the Government of India, RBI, and regulated by IFSCA, GIFT City is a game-changer for Indian investors aiming to tap into international markets.

Key Benefits of GIFT City Investment:

• Higher Limits via OPI: Family offices and private limited firms can deploy up to 50% of net worth in overseas markets through the Overseas Portfolio Investment (OPI) route.
• Tax Incentives: Income from capital gains, dividends, and interest may enjoy lower tax rates or exemptions. Fund managers get a 10-year tax holiday.
• Simplified Compliance: One regulator (IFSCA), globally aligned laws, and easier currency conversion streamline the process.
• Global Infrastructure: Access to international brokers, custodians, and fund managers — all within India’s legal ecosystem.

   

  “Gift City investment enables Indian UHNIs to legally and efficiently access offshore funds without the friction of older frameworks.”

How to Invest in GIFT City: A Strategic Move for Indian HNWIs

Investing via GIFT City isn’t just smart — it’s rapidly becoming essential. Here’s how to invest in GIFT City:

1. Choose Your Investment Vehicle: Family Investment Fund (FIF) or a private limited firm.
2. Register with IFSCA: Get onboarded under GIFT City’s regulatory framework.
3. Allocate Through OPI: Deploy up to 50% of net worth in offshore markets.
4. Access Global Markets: Use international brokers, fund managers, and custodians — all through GIFT.
5. Enjoy Tax Benefits: Leverage India’s most tax-efficient international investing model.

    

Why Gift City Investment is Booming: The Numbers Speak

The rise of GIFT City AIF platforms is not a trend — it’s a structural shift. Consider this:

• Overseas investments via GIFT structures crossed $778 million in H2 2024 alone.
• More than 80 fund managers now operate from GIFT City, managing over $30 billion.
• Surge in registrations of Family Investment Funds (FIFs) shows accelerating UHNIs adoption.

For anyone serious about offshore allocation, GIFT City investment is becoming the de facto route.

Aequitas India Trust: An Offshore Fund Designed for Indian UHNIs

The Aequitas India Trust, managed by Aequitas Investments IFSC Pvt. Ltd., is a GIFT City-based offshore fund designed to offer global investors direct Indian equity exposure — with the tax and structural advantages of a GIFT City AIF.

Founded by Siddhartha Bhaiya, Aequitas has grown from $1.8 million AUM in 2013 to over $650 million in 2025, purely through performance and client trust.

Key Benefits of Aequitas India Trust

• Tax Efficiency: No 18% GST on fund management; favourable capital gains and dividend tax treatment.
• Neutral Jurisdiction: Global investors gain from GIFT City’s credible, stable legal framework.
• Pooled Efficiency: As a GIFT City AIF, the fund leverages pooled investments with institutional-grade execution.

If you’re an investor looking to globalize exposure with a strong India bias, this is the kind of product built for you.

Conclusion: GIFT City is India’s Financial Gateway to the World

As the rupee faces long-term headwinds and global opportunities beckon, Indian UHNIs are no longer content with domestic-only portfolios.

With tax benefits, compliance clarity, and access to global markets, GIFT City investment offers a unique, India-based solution for international diversification. Whether through a GIFT City AIF or a Family Investment Fund, this platform is tailored for the next generation of wealth management.

For those wondering how to invest in GIFT City, the time to act is now. And for those seeking a proven path to do it well, Aequitas India Trust offers a compelling solution.