Trading volume on GIFT City’s Global Access Platforms nearly doubled to $1.93 billion in the first quarter of fiscal 2027. This growth is driven by rising retail and institutional interest in U.S. stocks, though tax and transaction costs remain important considerations for investors.
GIFT City has recorded a significant rise in offshore trading activity, with the value of securities traded through Global Access Platforms (GAPs) reaching $1.93 billion in the first quarter of fiscal year 2027. This marks a notable jump from $963.62 million in the previous quarter and $639.44 million in the third quarter of fiscal 2026, highlighting an increasing preference among Indian investors for diversifying into global markets.
U.S. Stocks Drive Growth
U.S. exchanges remain the primary destination for this trading flow, accounting for approximately $1.5 billion of the total volume. Investor interest is also spreading to other international markets, with South Korean and German exchanges seeing trading values of $272 million and $43.7 million, respectively. This trend reflects a broader move by both individual and institutional participants to gain exposure to global equities and Exchange Traded Funds (ETFs) through the International Financial Services Centre (IFSC) framework.
Expansion of Retail Participation
The surge in volume is accompanied by a rapid increase in the user base. Active clients on these platforms rose to 66,210 in the first quarter of fiscal 2027, compared to 4,940 in the preceding quarter. This growth follows the regulatory framework established by the International Financial Services Centres Authority (IFSCA) last year, which paved the way for numerous financial firms to set up brokerage services. The ecosystem is expanding quickly, with 16 brokers registering in June alone to facilitate these transactions.
Factors Influencing Investment
Several major Indian brokerage firms, including Zerodha and Upstox, have already secured registrations in GIFT City to tap into this demand. Other players, such as Groww, are also in the process of launching U.S. stock trading services after obtaining necessary licenses. While the ease of access is improving, investors continue to navigate certain frictions that affect the net cost of investing. Specifically, the 20% Tax Collection at Source (TCS) on remittances exceeding ₹10 lakh remains a key point of discussion. While this tax is adjustable against final liabilities, it impacts the immediate availability of funds for investment. Furthermore, investors are balancing these tax implications alongside additional expenses like foreign exchange charges and platform withdrawal fees, which directly influence the final cost of trading in global markets.
Going forward, the primary monitorables for investors will include the pace of new broker onboarding, any potential adjustments to tax collection norms, and the overall competitiveness of transaction costs as more service providers enter the GIFT City ecosystem.