(Bloomberg) -- India has exempted non-resident Indians and foreign retail investors who invest in exchange-traded funds and other retail plans through Gujarat International Finance Tec-City, or GIFT City, from taxes.
“The announcement of a tax-efficient regime for retail funds and ETFs will create new business opportunities for asset management companies in GIFT City,” Tapan Ray, managing director of GIFT City, said in an emailed statement.
To be sure, all investments will have to be made in foreign currencies to avail the benefit.
The announcement was made by Finance Minister Nirmala Sitharaman in parliament Tuesday as Prime Minister Narendra Modi’s coalition government announced its first budget. The GIFT City, India’s newest financial hub, is a pet project of Modi’s.
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