GIFT City aims to attract global capital and enable Indian investors to go global: Vaibhav Shah

Speaking at the Moneycontrol Mutual Fund Summit, Shah noted that though the lower investment threshold — now as low as $5,000 to $10,000 — brings global investing within reach of retail investors, the operational hurdles under the LRS window continue to pose difficulties.

GIFT City was envisioned not just as a hub to attract foreign capital into India but as a global financial jurisdiction that empowers Indian residents to invest abroad as well, said Vaibhav Shah, Head – Products, Business Strategy & International Business at Mirae Asset Investment Managers.

Speaking at the Moneycontrol Mutual Fund Summit, Shah explained that to truly compete with established global financial centres like Singapore, Mauritius, and Dubai, India’s GIFT City must offer a dual advantage — facilitating the inflow of international capital while also enabling Indian investors to access global markets seamlessly.

“GIFT City’s evolution into a complete financial ecosystem gives asset managers the ability to offer a full product range — not just India-focused investments, but global products as well,” Shah said.

He added that the recent launch of retail funds from GIFT City marks a significant milestone, reducing the minimum investment threshold from as high as $75,000–$250,000 earlier to just $5,000–$10,000 now. This makes international investing far more accessible for Indian retail investors.

However, Shah cautioned that operational challenges remain, particularly around fund transfers under the Liberalised Remittance Scheme (LRS). “Even if investors can start with smaller amounts within the ₹10 lakh limit, executing transfers through the LRS route is not as seamless as investing in domestic mutual funds. It will require a fair amount of investor education to help people understand how LRS transfers work,” he said.

He further noted that the banking infrastructure within GIFT City is still developing. “The system isn’t as robust as mutual fund payment gateways, where money moves instantly. Once this gap is addressed, retail participation can grow substantially and attract large capital inflows through the GIFT City route,” Shah added.