GIFT City investment edge for NRIs: Tax benefits and global investment access with new insurance opportunity

If you are an NRI exploring investment options beyond traditional bank deposits or mutual funds, you may have come across a relatively new route, investing through GIFT City.

What is GIFT City and how does it work for NRIs?

GIFT City (Gujarat International Finance Tec-City) is India’s International Financial Services Centre (IFSC), designed to offer global financial services within India under a separate regulatory framework.


It allows investors, especially NRIs, to access foreign currency-denominated products, global markets and tax-efficient structures without routing investments through overseas financial hubs.

Recently, Policybazaar has expanded its offerings to make investment more seamless than ever for NRIs.

Through its presence in India’s International Financial Services Centre (IFSC), Policybazaar is enabling NRIs across 35+ countries to access investment-linked insurance solutions denominated in US dollars.

“GIFT City now contributes to more than 50% share of our NRI customer base. It is gradually becoming the preferred destination for global Indian investors. Among NRIs, GIFT City is gaining strong momentum as a preferred investment hub,” says Bimal Menon, Principal Officer, Policybazaar’s GIFT City Branch.

Tax benefits in GIFT City

One of the key factors driving interest in GIFT City-based investment products is the tax advantage offered under Indian law.

Budget 2025 introduced a significant change by allowing full tax exemption on maturity proceeds for investment-linked insurance policies issued through IFSC (GIFT City) under Section 10(10D), provided the premium does not exceed 10% of the sum assured.

This has strengthened the appeal of such products among NRIs, especially when combined with other benefits such as US dollar-denominated investment options, seamless repatriation of funds, and a single unified regulatory framework.

NRIs can invest directly through their NRE or overseas bank accounts

• One of the biggest shifts is ease of access. NRIs can invest directly through their NRE or overseas bank accounts using fully digital platforms.
• They can choose from international funds, as well as Gold and Silver ETFs, with the flexibility to pay premiums in different ways and withdraw funds partially if needed.
• The entire process from onboarding to investing can be completed online, with remote KYC and no need to be physically present.
• Certain policies also offer tax benefits, and Double Taxation Avoidance Agreements (DTAAs) help reduce the chances of being taxed in more than one country.

Certain plans incorporate waiver-of-premium options that ensure continuity of investment in case of unforeseen events, alongside life cover and USD-denominated payouts.

As global investment opportunities become increasingly accessible, GIFT City is poised to play a pivotal role in shaping the future of cross-border wealth creation for NRIs.