A unified gateway for cross-border finance via GIFT City, India.

For an NRI based in the USA, UK or UAE, GIFT City IFSC is one of the most tax-efficient ways to enter Indian markets. Investments are made in USD, settled inside the IFSC, and governed by IFSCA — a single regulator built specifically for global finance. Unlike the standard NRE/NRO + FPI route, IFSC funds are exempt from securities transaction tax (STT) and offer concessional or nil tax on capital gains and interest for non-residents investing through Category I, II and III AIFs.

1. Confirm eligibility. Any individual holding an Indian or foreign passport who is a non-resident under FEMA can invest. US and Canadian NRIs should pick funds that explicitly accept FATCA-compliant investors.
2. Open a Foreign Currency Account (FCA)with an IFSC Banking Unit (IBU) inside GIFT City. The FCA holds USD/EUR/GBP and is the funding source for all IFSC investments — no need to route money through an NRE account.
3. Complete IFSC KYC with the chosen AIF, PMS or feeder fund. Most managers accept digital KYC for NRIs with passport, overseas address proof, PAN (or Form 60) and a tax residency certificate.
4. Remit funds from your overseas bank directly into the FCA. Because the money never enters domestic India, there's no TDS at the remittance stage and no LRS limit applies — LRS is only relevant for resident Indians sending money out.
5. Subscribe to the fund — typically an IFSC AIF (India equity, debt, long-short, or global feeder) or a discretionary PMS. Minimum ticket sizes start at USD 150,000 for AIFs and can be lower for retail mutual fund schemes registered with IFSCA.

• Category III long-only India equity AIFs— concentrated portfolios of 20–30 Indian large and midcap stocks, USD denominated.
• Category II private credit AIFs — rupee-denominated debt with USD hedging, targeting 11–14% gross IRRs from Indian performing credit.
• Long-short and absolute return AIFs — Cat III strategies using F&O to deliver equity-like returns with lower drawdowns.
• Global feeder funds — IFSC vehicles that feed into US equity, Nasdaq, or developed-market debt strategies, useful for NRIs who want global diversification inside a single IFSC account.
• PMS in IFSC — discretionary portfolios with lower minimums than AIFs (USD 75,000+), suitable for NRIs who want direct stock ownership and customised mandates.

The Liberalised Remittance Scheme (LRS)allows resident Indians to remit up to USD 250,000 per financial year for permitted investments, including GIFT City IFSC funds. NRIs do not use LRS — they fund the FCA directly from overseas. Capital gains and interest earned by non-residents in specified IFSC funds are exempt under Section 10(4D) of the Income-tax Act, and dividend income is taxed at a concessional 10%. Proceeds, including profits, are fully repatriable back to your overseas account in foreign currency without separate RBI approval.

This page is educational, not investment or tax advice. Consult a SEBI-registered adviser and a cross-border tax professional in your country of residence before investing.

Not sure whether a GIFT City IFSC AIF or a domestic AIF is right for you? Our comparison guide explains the tax, currency, and regulatory differences, including Section 10(4D) exemptions, USD-denominated investments, and GST benefits.