Who really benefits from GIFT City? Real case studies from Dubai, Singapore, UK and India

GIFT City is often called India's gateway to global finance. It guarantees access to international financial goods, foreign-currency investments, and a globally interconnected financial ecosystem without deviating from India's regulatory framework.

However, there is a more crucial question to ask before creating an account. Is your financial issue truly resolved by GIFT City? Who you are will determine the answer.

An NRI in Dubai, a professional in the UK, an investor in Singapore, and an individual in India can all view GIFT City and reach quite different conclusions.

Some people find it easier to manage their global fortune. For others, it can just mean additional paperwork, another account, and minimal actual benefits.

As Certified Financial Planner (CFP) Shweta Shastri puts it, "GIFT City is often most relevant for NRIs and globally mobile investors who earn, save, or invest in foreign currency and want to keep their investments in that currency."

For investors whose financial lives are largely India-centric, she says, "adding another account only makes things more complicated."

The Dubai investor

Take the example of a UAE-based NRI earning in dirhams. GIFT City may be a good choice if future costs are anticipated to be incurred abroad and the objective is to accumulate wealth in dollars rather than rupees. It enables the investor to access foreign exchange investments via a platform under Indian regulation.

"A UAE-based NRI is often a good example. Suppose an NRI earns and invests in US dollar-denominated products through GIFT City. They may be able to access eligible investments that enjoy favourable Indian tax treatment while also residing in a country with little or no personal income tax. In such cases, the overall post-tax return can be significantly higher than investing through traditional Indian routes," said CA Abhishek Soni, CEO & Co-founder, Tax2win.

"Similarly, NRIs seeking global investment exposure, hold assets in foreign currency, and frequently move money across countries may find GIFT City particularly attractive," added Abhishek Soni.

Naturally, investing in foreign currency entails taking on currency risk. Changes in exchange rates might increase or decrease total returns.

CFP Shweta Shastri shared the following anonymised client case studies to illustrate how different investors evaluate GIFT City based on their financial circumstances.

The Singapore investor

"A client moved to Singapore seven years ago and built a portfolio of nearly ₹30 crore. Since Singapore already offered world-class investment platforms and easy access to global markets, there was little reason to shift a large part of the portfolio to GIFT City. Instead, we recommended allocating around 10-15% of the portfolio if the investor wanted additional exposure to US dollar assets while retaining an Indian-regulated investment option."

For Shweta, this illustrates one of the biggest mistakes investors make.

"People often open GIFT City accounts because they've heard about tax benefits," she says.

The better approach is to start with your financial goals, not the tax savings.

The UK investor

"Another client had lived in the UK for more than 12 years, earned in pounds, and managed a portfolio of roughly ₹40 crore. The challenge wasn't finding investments, it was managing multiple accounts, platforms, and reporting requirements across countries. For this investor, GIFT City became less about chasing returns and more about simplifying wealth management. Around 20-25% of the portfolio was allocated to GIFT City for US dollar diversification, while the rest remained invested across the UK and India."

According to Abhishek, this is becoming a common reason investors consider GIFT City.

Beyond tax benefits, many investors are looking for foreign-currency investing, easier cross-border transactions, global market access, and smoother repatriation.

India-based investor

"A resident Indian with a portfolio of about ₹8 crore wanted to reduce concentration risk, as most of the family's wealth was linked to India and the rupee. The objective wasn't to move money overseas, it was to add exposure to global technology companies and US dollar assets. GIFT City provided another route to achieve that. However, because the investor's income, expenses and long-term financial goals remained firmly rooted in India, only about 10% of the portfolio was allocated there. The purpose wasn't tax planning. It was diversification."

As Shweta puts it, "A good investment doesn't become suitable just because it saves tax."

These examples highlight an important point. The question isn't whether GIFT City is good or bad. It's whether it's the right fit for your financial life.

If you earn in foreign currency, plan to spend abroad, or manage wealth across multiple countries, GIFT City can be a practical addition to your portfolio.

But if your financial goals are largely India-focused and tax benefits are the only attraction, the extra complexity may outweigh the benefits.