GIFT City Emerges as Key Investment Hub for NRIs with Tax Benefits and Global Access

GIFT City is increasingly becoming a preferred destination for Non-Resident Indians seeking diversified investment opportunities beyond traditional avenues such as bank deposits and mutual funds, as per news reports. 

GIFT City Offerings to NRIs 

GIFT City operates as India’s International Financial Services Centre, providing access to global financial services within the country under a distinct regulatory environment.  

It enables investors to access foreign currency-denominated products, participate in international markets and utilise tax-efficient structures without routing investments through offshore jurisdictions. 

This structure simplifies cross-border investing and reduces dependence on foreign financial hubs, making it particularly attractive for NRIs. 

Policybazaar Expansion and Growing Adoption 

Policybazaar has expanded its offerings within GIFT City, allowing NRIs across more than 35 countries to invest in US dollar-denominated investment-linked insurance products. 

According to Bimal Menon, Principal Officer, Policybazaar’s GIFT City Branch, GIFT City now contributes to over 50% of the company’s NRI customer base, indicating rising adoption. He noted that the platform is gaining momentum as a preferred investment hub among global Indian investors. 

Tax Benefits and Regulatory Advantages 

A key driver behind this shift is the tax benefit introduced in Budget 2025. Under Section 10(10D), maturity proceeds from investment-linked insurance policies issued through GIFT City are fully tax-exempt, provided the premium does not exceed 10% of the sum assured. 

Additional advantages include seamless repatriation of funds and the presence of a unified regulatory framework, which together enhance the attractiveness of such products for NRIs. 

Ease of Investment and Product Features 

NRIs can invest directly using NRE or overseas bank accounts through digital platforms. The process, from onboarding to investing, is fully online and supported by remote KYC, eliminating the need for physical presence. 

Investment options include international funds, as well as gold and silver exchange-traded funds. Investors can choose flexible premium payment structures and also benefit from partial withdrawal options. 

Certain plans offer additional features such as waiver-of-premium benefits, life insurance cover and payouts denominated in US dollars. Double Taxation Avoidance Agreements further reduce the risk of being taxed in multiple jurisdictions. 

Read More: Equitree Capital Launches Offshore AIF in GIFT City for Global Investors! 

Conclusion 

GIFT City is emerging as a central hub for cross-border investments by NRIs, combining global market access, tax efficiency and digital convenience, while positioning itself as a key platform for future wealth creation. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.