There were two essential ideas of setting up the GIFT City near Gandhinagar in Gujarat. The city was supposed to provide an international trading platform to international investors that would parallel exchanges like New York, London, Singapore and Hong Kong. Secondly, this would also prevent exchange volumes being exported due to factors like liquidity, volumes, ease of trading, membership rigors, costs, STT etc.

The INX (India International Exchange) at GIFT City has allowed foreign portfolio investors (FPIs) to invest via the international financial services centre (IFSC) in Gandhinagar. The exchange already does volumes of $2-$3 billion each trading day and with the inclusion of NRIs in the volumes of FPIs in the latest budget, this definition should only expand. You may recollect that Non Resident Indians (NRI) regulation has also been subsumed under FPI regulations so NRIs also get access to the benefits of Gift City.