GIFT City Fuels Indian Overseas Investment Surge

Indian investors are showing a significant and growing interest in foreign asset classes, primarily US stocks and exchange-traded funds (ETFs), facilitated by Gujarat International Finance Tec-City (GIFT City).

The total traded value on India International Exchange's (India INX) Global Access Provider (GAP) platform experienced a substantial increase, rising by over 80% quarter-on-quarter to approximately $1.74 billion in the June quarter of 2026. This platform connects investors to international financial markets.

This surge in overseas investment is attributed to several factors. These include the pursuit of portfolio diversification, stronger returns observed in US markets compared to domestic indices, and the significant growth in the artificial intelligence and technology sectors. Retail investors, proprietary traders, high net-worth individuals, and corporates are all contributing to this expanding investor base.

Regulations such as the Reserve Bank of India's Liberalised Remittance Scheme (LRS), which permits individuals to remit up to $250,000 overseas annually, are also supporting this structural shift. While domestic mutual funds face investment caps for international stocks, the IFSC global access mechanism offers an alternative route for diversification.

ETFs have become a preferred investment avenue due to their simplicity, low cost, and ability to provide diversified market exposure. Investors are actively acquiring shares in prominent US tech companies and low-cost index funds like the S&P 500 and Nasdaq-100 ETFs, with growing interest also noted in semiconductor companies. Future policy reforms are anticipated to further digitize KYC procedures and ease global mutual fund establishment in GIFT City.