91-Mark Against The US Dollar
We are living in a period of historic realignment in the global investment community as we head to the end of 2025. India is a top growing among the large economies and has continued to perform 7% GDP growth. But to the international investors, especially the investors in charge of the foreign direct investment in the UAE, a silent killer has been draining away these profits: currency depreciation.
As the Indian Rupee (INR) has recently hit the 91-mark against the US Dollar, the 5 percent per annum currency leak has actually come into being. When you want to invest in India, it is no longer the question of how to grow it, but retain it.
This is where GiftCityAdvisor comes in. Through the Gift IFSC framework, we assist you in realizing the huge potential in India and protect your capital in hard currency.
1. The Strategic Pivot: UAE Capital is shifting to GIFT City
UAE – India corridor is the most vibrant trade route in the globe at present. With the non-oil sector of the UAE reaching an all-time high of 77 percent of the GDP, sovereign wealth, and non-state family wealth are seeking some sort of a stable base where they can invest their foreign direct investment in India.
In the past, this capital was pumped through Singapore or Mauritius. Nevertheless, Gift Cities Gandhinagar has become the better option in the year 2025.
There are three main drivers of this shift, as we are a major Gift IFSC Consultant:
- Proximity & Policy: Bilateral flows are made smooth by the UAE-India Comprehensive Economic Partnership Agreement (CEPA).
- IMEC Integration: India-Middle East-Europe Economic Corridor (IMEC) has made GIFT City the financial clearing house of the region in terms of trade.
- Cost Arbitrage: The cost of doing business in the IFSC is 80 percent less as compared to the traditional offshore hubs.
2. Advantage 1: Cancelling Currency Risk by USD Denomination
This fluctuation of the Rupee has always been the greatest impediment towards Invest in India. With the Nifty 50 increasing by 12 percent and the Rupee decreasing by 5 percent, you would only make a net return of 7 percent in USD.
An IFSC Consultant’s help lets you skip this entire process:
- USD-Priced Assets: At the Gift IFSC, it is possible to invest in Indian blue-chip stocks, ETFs, and mutual funds, which are priced in US Dollars.
- Worldwide Banking: To ensure your capital is in a “hard currency” environment, go with an IFSC to open USD, EUR, or GBP accounts.
- Hedging Efficiency: Since you are dealing with USD as your base currency, you do not have to pay the cost of expensive currency hedging contracts, which erode your margins.
Expert Analysis: It is not only about buying the correct stock in a 91-Rupee environment, but the best bet is that of buying the correct currency. With GIFT City, you can make bets on the businesses of India without betting against its currency. Gift City Advisor Strategy Team.
3. Advantage #2: Tax Supremacy and the Zero-Tax Alpha
Once you begin the business in India or invest onshore, you are struck by the entanglement of taxes: Long-Term Capital Gains (LTCG), Short-Term Capital Gains (STCG), and Dividend Distribution Taxes.
In the case of foreign direct investment into India through GIFT City, the tax environment is changed.
The Comparative Tax Advantage (2025–26)
| Tax Category | Onshore India (Retail/FPI) | Gift City IFSC (via GiftCityAdvisor) |
|---|---|---|
| Corporate Tax | 25% - 30% | 0% (10-year Tax Holiday) |
| Capital Gains (LTCG) | 12.5% | 0% (For Non-Residents) |
| STT / Stamp Duty | ~0.1% per trade | Zero |
| GST on Services | 18% | Zero |
| Dividend Tax | 20% (for non-residents) | Lower Treaty Rates / Exemptions |
With the help of Gift IFSC Consultant, fund managers can simply achieve an extra 2-3% annual alpha by simply streamlining their tax structure.
4. Advantage #3: Easy Onboarding and No-PAN Compliance
UAE investors are regularly frustrated by the bureaucracy of the Indian administration. Conventional onboarding may take 6-8 weeks and demands an Indian PAN card, where the investor is absorbed in the local tax bracket.
This is simplified by GiftCityAdvisor using the IFSCA Global Best Practice framework:
- No PAN Necessity: Indian PAN is not mandatory in the IFSC among non-resident investors.
- Digital KYC: It is possible to onboard a Family Office or an AIF ( Alternative Investment Fund ) within 5 business days.
- Single Window Regulator: The IFSCA is a single regulator whereby one does not have to conduct transactions with the RBI, SEBI, and IRDAI separately.
5. More than Stocks: How to Start a Business in India through IFSC
GIFT City is not only where the investors of the stock market can get their stock market-based business launched, but the perfect launchpad to Start business in India. The IFSC offers a global treasure of Sandpit to innovate, whether you are in Fintech, Aircraft Leasing, or Global Treasury.
High-priority Sectors of UAE Investors in 2026:
- Fintech & AI: Test cross-border payment solutions using the IFSCA regulatory sandbox.
- Ship and Aircraft Leasing: Seize the opportunity in the structure that has already leased more than 100 aircraft in two years.
- Family Offices: Establish a “Family Investment Management Entity” (FIME) to operate in a tax-free jurisdiction across the globe.
6. Reasons Why you Should have a professional Gift City Advisor
To get through the Gift IFSC, a brochure is not enough. The rules are movable, and the 2025 amendments of the IFSCA handbook have opened new small subtleties with regard to the Private Credit and Green Finance.
GiftCityAdvisor, as your IFSC Consultant, provides:
- Turnkey: Between company incorporation and licensing with the IFSCA.
- Compliance Management: Regular reporting of laws and regulations, plus taxes.
- Strategic Advisory: Customizing your investment model to benefit the UAE-India CEPA.
Corporate Responsibility: It is Time to Take Action
The 91-Rupee milestone is a wake-up call. The impact of currency on your Indian returns can no longer be ignored. When you invest through the Gift IFSC, you are not just investing in a country but in a dollar-based high-tech financial ecosystem that is designed for the global elite.
Do not drown your dreams of 7% GDP growth with 5% currency risks. Future your path with the right IFSC Consultant.