GIFT City Investing Explained: How Indians Can Buy Global Stocks

Understanding the process, costs, and tax rules behind India’s growing gateway to international markets.

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Over the past year or so, I have noticed something interesting when speaking with investors. Whenever global markets come up in a discussion, someone almost always asks the same question: Is there an easier way for Indians to invest abroad?

And it is a fair question.

Plenty of people want exposure to global companies today. We all follow Apple Inc. launches, Tesla Inc. updates, or Microsoft Corporation earnings calls. These companies shape the global economy significantly.

But actually investing in them from India isn’t always as simple as opening your trading app and buying a stock.

Usually, it means opening an overseas brokerage account, sending money abroad, dealing with currency conversions, and later figuring out how the whole thing fits into your tax return.

None of this is impossible; thousands of investors already do it. Still, it does make global investing feel slightly more complicated than it should be.

Over the past few years, though, India has been quietly building something that could change that.

It is called Gujarat International Finance Tec-City, better known as GIFT City.

You might have heard the name in budget speeches or financial news. But outside policy circles, many investors still aren’t exactly sure what it means.

So let’s slow down for a moment and talk about it in simple terms. Because if India’s plans work out, GIFT City could eventually become one of the main gateways for Indian investors to access global markets.

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So What Exactly Is GIFT City?

GIFT City sits near Gandhinagar in Gujarat. The full name is Gujarat International Finance Tec-City, though almost nobody calls it that in daily conversation.

What matters is that it hosts India’s first International Financial Services Centre (IFSC).

The idea behind it is actually pretty straightforward. For years, when Indian money wanted access to global financial products, it usually had to go through financial hubs like Singapore or Dubai.

Those cities became the place where international deals happened. India’s idea with GIFT City is simple: why shouldn’t some of that activity happen here instead?

So regulators created a special financial zone with its own rules designed for international finance. Over time, banks, asset managers, insurance firms and exchanges have started setting up operations there.

It is still evolving, but the ecosystem is gradually taking shape.

Two international exchanges operate from GIFT City today:

• India International Exchange (India INX)
• NSE International Exchange (NSE IX)

These exchanges allow trading in certain financial instruments denominated in foreign currencies. In simple terms, they function like international trading venues, just located within India’s IFSC framework.

Why Investors Are Starting to Pay Attention

The reason this matters comes down to one simple thing: global diversification.

Indian investors today are far more aware of global markets than they were a decade ago. Many want at least a small portion of their portfolio outside India.

Not because they are pessimistic about India - quite the opposite - but because diversification across economies can sometimes make portfolios more resilient.

And of course, some of the world’s largest companies are listed overseas.

Think about names like Apple Inc., Tesla Inc., Microsoft Corporation or Amazon.com Inc..

Buying these companies directly from India has always been possible, but it involves additional steps.

Typically, you need:

• an international brokerage account

• bank remittance under RBI rules

• currency conversion

• extra tax reporting

What GIFT City tries to do is reduce some of this friction by creating an international investing ecosystem closer to home.

You can think of it as a financial bridge between India and global markets.

How Investors Can Actually Invest Through GIFT City

Now let’s talk about the practical side.

For most individual investors, the starting point is still the Liberalised Remittance Scheme (LRS). Under this framework, Indian residents can send up to $250,000 per year abroad for permitted investments.

The same basic limit applies when investing through GIFT City structures. So the flow usually looks something like this:

You remit funds under LRS → the money moves to a broker or platform operating in GIFT City → and from there you can access certain international investment products listed on exchanges such as NSE International Exchange (NSE IX) or India International Exchange.

Investors typically need a trading account and a demat account with institutions operating within the IFSC ecosystem.

The onboarding process has improved quite a bit recently. Some platforms now allow digital account opening, which makes the whole thing far less intimidating than it used to be.

What Can You Invest In?

Right now, the range of investment options inside GIFT City is still fairly limited. It is not like you suddenly get access to the entire world of global markets. But a few pathways have started appearing, and that’s where things get interesting.

For a while, one of the main ways investors could get exposure to overseas stocks through GIFT City was via something called Unsponsored Depository Receipts, or UDRs. The name sounds complicated, but the idea is actually pretty simple.

Instead of buying a share directly on an exchange like the NASDAQ or the New York Stock Exchange, you are buying a receipt that represents that share. So if you wanted exposure to companies like Apple Inc. or Microsoft Corporation, you could do it through these receipts.

They are traded on international exchanges based in GIFT City, including NSE International Exchange (NSE IX).

When I first read about this structure, I remember thinking it sounded a bit like a proxy. You are not buying the share directly in the US market, but economically, you still get exposure to how that company performs.

But recently, something new has started taking shape. In February 2026, NSE International Exchange rolled out something called the Global Access platform. And this changes the picture a little.

Instead of just trading receipts, this platform routes investor orders to US markets through international broker partners, all under the regulatory framework of the International Financial Services Centres Authority (IFSCA).

In practical terms, it means investors sitting in India can access companies like Apple Inc., Tesla Inc., NVIDIA Corporation, Microsoft Corporation, or Amazon.com Inc. through a platform operating out of GIFT City, while the trade itself eventually gets executed in the US market.

Of course, stocks are not the only thing happening there.

Some asset managers have also started launching global mutual funds from GIFT City that invest in international equities, ETFs, or bonds. And for bigger investors, the ones looking beyond public markets, there are Alternative Investment Funds (AIFs) focusing on things like private equity or venture capital overseas.

Still, it would be fair to say this ecosystem is very much a work in progress.

If you compare it with places like Singapore or London, GIFT City is still tiny. Liquidity is building, products are limited, and the whole system is evolving in real time. But that’s also what makes it interesting to watch.

Because if India really wants its own international financial hub, this is probably where that story begins. And if things keep moving in the same direction, investors might eventually find a lot more global opportunities opening up through this route.

A Quick Note on Taxes

One question that comes up frequently is whether investing through GIFT City offers special tax benefits.

For resident Indian investors, the answer is mostly no. In most cases, taxation is broadly similar to investing overseas directly under the LRS route.

Capital gains from foreign securities are generally taxed based on holding period, while dividends are taxed according to the investor’s income slab after any foreign withholding tax.

These investments also need to be reported in the income tax return under Schedule FA, since they involve foreign assets.

Because tax treatment can depend on the structure of the instrument, it is always wise to consult a CA or tax advisor for personalised classification.

Why the Government Is Pushing GIFT City

Behind the scenes, there is a clear policy push to develop GIFT City into a major financial hub. The government has introduced various incentives to attract global financial institutions to set up operations there.

The idea is that over time, a larger ecosystem of banks, asset managers, exchanges and financial service firms will operate from this centre. If that happens, more international financial products could eventually become available to investors.

The Bigger Picture

For a long time, Indian investors faced a slightly odd situation. India’s economy was growing rapidly, yet accessing global markets often required routing money through financial hubs in other countries.

GIFT City is an attempt to change that dynamic.

It is still early in the journey. Liquidity is developing, and the range of products remains limited compared with established global markets.

But the direction is clear.

If India wants to build a serious international financial centre, GIFT City will likely be an important part of that story.

And for investors interested in global diversification, it is definitely something worth keeping an eye on.

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