GIFT City: Global Investments for Indian Investors
By Business Desk
HSBC India’s Sandeep Batra explains how GIFT City empowers Indian investors (resident & non-resident) to diversify portfolios globally with access to international products.
GIFT City now provides Indian investors a new route for global investment, according to Sandeep Batra, MD & Head, International Wealth & Premier Banking at HSBC India. Both resident and non-resident Indians can establish multi-currency accounts there to access diverse overseas products.
Accessing Global Investment Opportunities
This initiative enables investors to diversify their portfolios beyond domestic markets, complementing rather than replacing their existing Indian investments. Growing interest in global equities, mutual funds, and alternative investments highlights the relevance of this new pathway.
- Investors can access fixed-income and equity funds in international markets, including the US and other emerging economies.
- Options include funds offering exposure to multiple markets or portfolios combining both Indian and US assets.
- GIFT City also provides access to global products like private equity, venture investing, and multi-currency insurance.
Navigating Rules for Resident Indians
Resident Indians must adhere to the Liberalised Remittance Scheme (LRS), which sets an annual overseas remittance cap of $250,000. Funds directed through LRS to GIFT City are fully investable.
- These funds must be deployed within six months of transfer.
- Alternatively, any undeployed funds can be held in a term deposit.
Provisions for Non-Resident Investors
Non-resident Indians (NRIs) face no LRS limits when moving funds into or out of GIFT City. Additionally, GIFT City is enhancing its offerings for NRIs specifically looking to gain exposure to Indian assets.
GIFT City thus serves as a critical conduit for both resident and non-resident Indians seeking to expand their investment horizons and strategically diversify their financial holdings globally.