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Sheet 05 — The Second Passport for Capital

GIFT City. Legally India.
Financially, the world.

GIFT City (Gujarat International Finance Tec-City) is a special jurisdiction. It sits legally inside India, but works in US dollars under its own regulator, the IFSCA. Money can flow in from overseas investors and out to global markets — both without the old friction. We currently curate products on both routes.

We are in Vadodara, about two hours from GIFT City itself

Do you file taxes in the US or Canada?This changes the answer completely. Read the US corridor guide first →
Route A

Inbound — Into India

For NRIs, OCIs & foreign investors

  • Invest in US dollars — no NRE/NRO bank account needed
  • Full repatriation — capital and gains move freely, no FEMA friction
  • No Indian tax filing — most IFSC funds handle tax at the fund level
  • Indian strategies, offshore wrapper — concentrated equity, market-neutral, private credit
  • One relationship — dollar statements, single point of contact
USD SUBSCRIPTIONIFSCA REGULATEDNRI-FIRST TAX TREATMENT
See the shelf →
Route B

Outbound — Go Global

For resident Indians via LRS

  • A currency hedge that pays — dollar assets against long-run rupee depreciation
  • Themes India doesn’t list — GenAI & semis, Greater China, EM ex-India, global macro
  • Multi-geography allocation — US, Europe & emerging markets in one sleeve
  • LRS route — US $250,000 per person per year
  • Indian paperwork, familiar KYC — no foreign brokerage account to maintain
LRS ROUTEDOLLAR ASSETSINDIAN PAPERWORK
See the shelf →
Start here — where are you tax-resident?

The same GIFT City fund is treated three different ways.

India’s exemptions were designed for investors who are taxed nowhere else. Whether they help you, or quietly cost you, depends on where you file your taxes rather than on the fund itself. Read your corridor before you read the shelf.

Corridor USNRIs in United StatesUS tax residents — green card or substantial presenceCorridor UAENRIs in United Arab EmiratesNone — personal investment income is outside corporate taxCorridor UKNRIs in United KingdomDoes your share class hold HMRC reporting fund status?
Why this jurisdiction exists

The old friction

Investing across borders used to mean NRE/NRO mazes, currency conversion, TDS surprises and resident-style filings — enough friction that most capital simply stayed put.

The GIFT answer

Funds domiciled in GIFT IFSC operate in US dollars under IFSCA. Overseas money reaches Indian strategies, and Indian money reaches global markets — inside one clean, regulated wrapper.

The honest caveat

Tax treatment is fund-specific and residency-specific. Every GIFT decision here ends with one conversation with your CA, but it starts from a far simpler place than the old maze.

Read: GIFT City for NRIs →Read: GIFT City Outbound →The full material specification →Tax schedule (Resident / NRI) →
Straight answers on GIFT City
Who can invest in GIFT City fundsThe four investor classes, and where residence changes the answerHow to invest in a GIFT City fundThe account, KYC and money route for NRIs and residentsHow GIFT City funds are taxedIn India, then at home. The second level decides itGIFT City for resident IndiansThe outbound route, the LRS cap and Schedule FAWhat funds are available in GIFT CityBy category. The named shelf is behind the gateGIFT City fund minimum investmentIFSCA thresholds by scheme type and investor classGIFT City vs Indian mutual fundWhy the answer differs by the country you file inGIFT City and global USD investingThe outbound route for resident IndiansCan an NRI invest in an AIF?Rules, minimum and the repatriation routes