GIFT City can offer Indian investors a new route to access global investment opportunities, with resident Indians and non-resident Indians able to open accounts and invest in overseas products through the international financial hub, according to Sandeep Batra, MD & Head, International Wealth & Premier Banking, HSBC India.
Speaking to NDTV Profit, Batra said an account in GIFT City can serve as an additional account for Indians looking to build global exposure, complementing their existing investments in India.
“Indians are always international,” Batra said, pointing to the growing appetite among Indian investors for equities, mutual funds and alternative investments. He expects the domestic investment story to remain a long-term trend, while GIFT City can help investors diversify beyond Indian markets.
An investor sitting in India, or an NRI living anywhere in the world, can open an account in GIFT City with a bank of their choice. The account can be held in multiple currencies, allowing investors to access a range of overseas products.
These could include fixed-income and equity funds across markets such as the US and emerging markets. Investors can also choose funds with exposure to multiple markets, including portfolios combining Indian and US assets.
Batra said GIFT City can also provide access to global funds and products that allow an investor to take exposure to markets that may otherwise be difficult to access directly. Private equity and venture investing are among the newer categories gaining traction, while insurance products in multiple currencies are also available.
For resident Indians, the Liberalised Remittance Scheme, or LRS, continues to cap annual overseas remittances at $250,000. Batra said money transferred through LRS to GIFT City is fully investable, although it needs to be invested within six months. Until then, it can be held in a term deposit.
NRIs, meanwhile, can move money in and out of GIFT City without the LRS limit, he said.
Batra also highlighted the growing options for NRIs seeking exposure to Indian assets through GIFT City, saying the number of India-focused investment products is already large and continues to expand.
“GIFT is wonderfully complementing the capabilities we have around the world,” Batra said.
The broader proposition, he said, is not to replace an investor's domestic portfolio but to add global diversification across asset classes and geographies.
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