Indian investors are increasingly exploring foreign asset classes such as US stocks and exchange-traded funds (ETFs) through Gujarat International Finance Tec-City (GIFT City).
According to data from India International Exchange’s (India INX) Global Access Provider (GAP) platform, the total traded value in the June quarter (till June 26) surged more than 80 % quarter-on-quarter (QoQ) to around $1.74 billion. In the March quarter, traded value had risen 34 %. Traded value refers to the total monetary value of all executed transactions.
A GAP is a regulated financial intermediary that connects investors with international financial markets. India INX, the first international exchange in the International Financial Services Centre (IFSC), is a wholly owned subsidiary of BSE.
“It (GAP) gives an opportunity for Indians to invest abroad in international stocks in FATF-compliant jurisdictions, enabling diversification,” said Pradeep Ramakrishnan, executive director at the International Financial Services Centres Authority (IFSCA).
He added that both proprietary traders and retail investors are driving the growth. “In June 2026 alone, 16 brokers were registered, which is a testimony to the growing popularity of this model,” he said.
An India INX official said the growing appetite for foreign securities is being driven by portfolio diversification, higher retail participation, and the rise of discount brokers. The official added that while domestic benchmark indices underperformed and the broader market posted a single-digit decline, US markets delivered stronger returns in rupee terms.
Experts said greater awareness and easier access have encouraged more brokers to join the platform. Many clients are willing to allocate 20-30 per cent of their investable surplus to global markets, said Niteen Dongare, director and chief executive officer of GIFT City IFSC Business at Anand Rathi International Ventures. Interest is also growing among high net-worth individuals (HNIs), corporates, and family offices.
Alternative Route
Reserve Bank of India regulations allow resident individuals to remit up to $250,000 overseas each financial year under the Liberalised Remittance Scheme (LRS). Equity and debt remittances under the LRS rose more than four-fold to $1.76 billion in FY26 from $422 million in FY19, indicating what industry experts described as a structural shift towards global diversification.
“Presently, there is a cap of $7 billion for Indian mutual funds and $1.5 billion for Indian alternative investment funds. Indian mutual funds cannot invest in international stocks unless these limits are revised. However, investors can directly invest through the IFSC global access mechanism. Additionally, they are also taking advantage of the LRS investment limit of $250,000 per year,” Ramakrishnan said.
AI Boom
Industry participants said regulatory reforms and strong returns from US artificial intelligence (AI) and technology stocks have encouraged investors to diversify overseas while continuing to remain active in domestic markets. Beyond the US, investors are also showing increasing interest in markets such as China, Taiwan, and South Korea.
Viram Shah, founder and chief executive officer of Vested Finance, said the US remains the preferred destination for Indian investors seeking global exposure because it is the world’s deepest capital market and home to many companies leading the AI boom. He said Indian investors can buy shares of companies such as Nvidia and Microsoft, as well as low-cost S&P 500 and Nasdaq-100 ETFs, often starting with small investments through fractional shares. Shah also noted rising interest in semiconductor companies and Taiwan-linked investments because of their role in the AI supply chain.
ETFs have emerged as one of the most popular avenues for overseas investing. Tajinder Virk, founder and chief executive officer of Mauritius-based global capital markets platform Dealing, said ETFs dominate overseas investing because they offer retail and institutional investors a simple, low-cost, and passive way to gain diversified market exposure without actively selecting individual stocks.
While industry participants expect trading activity and the investor base at GIFT City to continue expanding, they also see scope for further policy support. The regulator is expected to introduce a framework for digitising know-your-customer (KYC) procedures for non-resident Indians (NRIs) and foreign nationals from selected countries, while also making it easier for global mutual funds to establish branches in GIFT City.
