About Offshore & International Platforms
 

What are offshore & international investments?

Global diversification through regulated offshore structures

International investing enables investors to access global markets, sectors and companies that are not meaningfully available in India, while improving diversification and managing country-specific risks.

India represents only ~5% of global market capitalisation, limiting exposure to several innovation-led themes such as artificial intelligence, semiconductors and robotics, making global investment opportunities and international investment strategies increasingly relevant.

Why Invest Outside India?

Investing globally allows portfolios to:

● Access a wider global investment opportunities set

● Participate in global innovation through offshore investments

● Reduce dependence on domestic economic and political cycles

● Improve diversification through global diversification due to India’s low correlation with global markets

Historical data shows that portfolios combining Indian and global exposure have delivered better risk-adjusted outcomes and lower volatility compared to India-only allocations strengthening international investments.

Benefits of Diversifying Portfolios into Foreign Currency Investments

Allocating a portion of portfolios to foreign currency assets helps address long-term financial needs that extend beyond domestic markets and supports foreign investment planning.

- Hedging Inflation and INR Depreciation

Foreign currency investments help mitigate the impact of domestic inflation and long-term depreciation of the Indian Rupee, preserving global purchasing power through currency diversification investments.

- Overseas Education Planning

USD and other foreign currency assets support future education expenses for children, where costs are typically denominated in foreign currencies — enabling better international financial planning.

- Overseas Medical Expenses

International investments provide financial preparedness for overseas medical treatment and healthcare needs of family members through global diversification.

- International Travel

Foreign currency exposure helps meet recurring travel expenses abroad without dependency on short-term currency conversions, supported by offshore investments.

- Global Business and Start-up Opportunities

Foreign currency investments facilitate participation in overseas business ventures, start-ups and entrepreneurial opportunities through international investment platforms.

- Foreign Citizenship and Residency Programs

Certain residency and citizenship programs require investments or financial commitments in foreign currencies, which can be planned through global asset allocation.

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International Investment Routes

Indian investors can access overseas investments through three broad routes, each with a distinct structure and regulatory framework for international investing from India.
 

- Mutual Funds Route (Offshore FOFs)

Under this route, domestic mutual fund schemes invest in international markets, typically through global exchange-traded funds (ETFs), enabling indirect offshore investments.

● Investments are made in Indian Rupees

● The standard domestic mutual fund investment process applies

● No overseas remittance is required from the investor

Note: SEBI, in coordination with the RBI, has set an industry-wide cap of USD 7 billion on overseas investments by Indian mutual funds. As this limit has largely been utilised, several international mutual fund schemes have restricted or paused fresh inflows until additional headroom becomes available.
 

- GIFT City Funds

The GIFT City ecosystem enables overseas investing through structures such as mutual funds, PMS and AIFs established under the GIFT City (IFSC) framework — a key route for international investments.

● Investments are made directly in USD

● Applicable for outbound overseas investments

● Falls under the Liberalised Remittance Scheme (LRS) for Resident Indians

This route allows investors to access global markets through India’s international financial services framework and structured offshore investments.
 

- Digital Investment Platforms

Digital investment platforms provide direct access to global markets, including:

● Global ETFs

● Select international investment platforms

Similar to GIFT City outbound investments:

● Investments are made in USD

● Transactions fall under the Liberalised Remittance Scheme (LRS)

Role of LRS in International Investing

For outbound international investments through:

● GIFT City funds

● Digital investment platforms

Resident Indian investors remit funds under the Liberalised Remittance Scheme (LRS), enabling compliant international investing from India.

Under LRS:

● An individual can remit up to USD 250,000 per financial year per PAN

● Remittances are permitted for eligible overseas investment purposes

What is GIFT City?

Gujarat International Finance-Tec City (GIFT) consists of a Multi-Service Special Economic Zone (SEZ), which has been notified as India’s maiden International Financial Services Centre and a hub for offshore investments.

● Single unified regulator for IFSC

● Powers vested in IFSCA with respect to regulation of financial institutions, financial services and financial products in the IFSC

● Offers capital market transactions, banking services, offshore asset management, and other financial transactions

The goal is to create a welcoming place where India-centric trading that’s moved to Dubai, Mauritius or Singapore can return home — strengthening India’s position in global investment opportunities.

A free trade zone with various tax incentives enabling flow of finance, financial products and services across borders.