GIFT City: A Catalyst for India’s Global Investing Leap

At the Bengaluru edition of the Mutual Fund Summit 2025, industry leaders spotlighted how GIFT City is evolving from a regional financial hub into a gateway for Indian investors seeking global exposure.

Once primarily oriented toward attracting foreign capital into India, GIFT City is now being positioned as the bridge through which Indian investors can access international themes such as artificial intelligence, semiconductors and digital infrastructure that were traditionally out of reach. Panelist Vaibhav Shah described it as a “real bridge to the world”.

A Changing Mind-set Among Investors

At the summit, Abhishek Tiwari (CEO, PGIM India MF) noted a discernible shift in investor behaviour: less domestic-only focus, more openness to diversification and global opportunities. Meanwhile, Neil Parikh (CEO, PPFAS) pointed out that exposure to different currencies and geographies strengthens portfolios and helps manage risk-reward dynamics.

Why It Matters for Investors & Financial Advisors

For investors and wealth managers, GIFT City’s evolving role offers strategic potential:

  • It widens the investment universe for Indian investors—moving beyond domestic equities and bonds to global infrastructure, technology and value-chain plays via GIFT City.

  • Investors might gain added upside from favourable currency exposures and access to different regulatory and structural advantages through the GIFT City platform.

  • Advisors should evaluate how client portfolios could incorporate “global via GIFT City” themes, while balancing currency, regulatory and execution risks that come along with stepping outside India-only holdings.

Strategic Outlook & Considerations

While the opportunities are compelling, certain factors need close monitoring:

  • The actual rollout of funds and products through GIFT City will determine how accessible and scalable the global-access thesis becomes for retail and HNI investors.

  • Currency and regulatory risks remain relevant: leveraging a global platform via GIFT City introduces additional dimensions of risk and reward.

  • Investor education and execution capability matter simply gaining access doesn’t guarantee outcome; selecting quality structures, balancing cost and flexibility, and aligning themes with long-term goals remain key.

GIFT City is no longer just a domestic “finance zone” – it’s becoming a strategic gateway for Indian investors to tap global opportunities. As India’s investment ecosystem matures, leveraging platforms like GIFT City can help broaden portfolios, deepen diversification and let advisors frame India-plus-global investment themes. However, execution discipline, cost awareness and risk management will separate the successful from the speculative.

Source: MoneyControl