GIFT City allows Indians to build global portfolios: Sandeep Batra

As cross-border capital flows gather pace, Indian investors are increasingly looking beyond domestic markets.

At the Mint Money Festival, Sandeep Batra, head of international wealth and premier banking at HSBC India, explained how GIFT City is emerging as a gateway for global diversification.

Batra described Indians today as “global by mindset”. India receives over $100 billion in annual remittances, while Indians invest roughly $30 billion overseas each year.

Traditionally, portfolios have carried a strong home bias, favouring real estate and gold. But that is beginning to change as investors seek exposure to global themes such as artificial intelligence, semiconductor manufacturing, and emerging markets growth.

He noted that residents can remit up to $250,000 per person annually under the Liberalised Remittance Scheme (LRS). Within GIFT City, investors can open multi-currency accounts and access outbound funds for investing in the US, Nasdaq, or emerging markets. Retail minimums have also fallen, with some products available from as low as $5,000, lowering entry barriers.

While mutual fund investing overseas has been constrained by regulatory limits, GIFT City structures provide access to global allocations. Insurance and other financial products are also expanding within the ecosystem. On the wholesale side, GIFT has seen rapid growth in banking assets and aircraft leasing, signalling increasing institutional adoption.

Currency risks and the long-term view

On how much to allocate internationally, Batra resisted fixed rules. Instead, he advised aligning exposure with life goals. Families planning overseas education or migration may benefit from building dollar assets gradually, rather than reacting to currency swings later. While some advisers suggest 10-30% global exposure, he said the right number depends on individual circumstances.

He cautioned that global investing introduces currency risk. The dollar has historically strengthened against the rupee, but movements can reverse. Diversification across regions and asset classes can help manage such volatility.

Responding to concerns about geopolitical tensions and tariffs, Batra emphasised long-term thinking. “Short-term headlines create noise, but disciplined investors focus on structural growth themes and diversified portfolios. Globalization may ebb and flow, yet innovation and capital formation continue across markets,” he said.

Interest, he observed, remains strongest for the US, though emerging markets such as Japan and Korea are gaining traction. Ultimately, GIFT City offers Indian investors a regulated route to build global exposure without leaving home, reflecting a broader shift from home-bound investing to globally diversified wealth creation.