Gujarat International Finance Tech-City (GIFT City)
Gujarat International Finance Tech-City (GIFT City) is a business district currently being constructed in the state of Gujarat.
GIFT City is India’s first operational smart city with the development of world-class infrastructure and sustainable master planning, which will make GIFT at par or above par with renowned centres like London, Shanghai, New York, Hong Kong, Singapore, Dubai, etc.
Promoted by the state government of Gujarat as a greenfield project, it will include commercial and residential complexes.
Area: As per the plans, 886 acres will be provided to develop nearly 62 million square feet of built-up area constituting 67% commercial, 22% residential and 11% social space.
Multi Service SEZ: The entire city project has been divided into a multi-service Special Economic Zone (SEZ) spread over 261 acres and an exclusive domestic tariff area (DTA) spread over 625 acres.
Tax Exemptions: The Centre has announced a range of tax exemptions for entities to start their international operations from the GIFT City. As a result, both the BSE and the NSE have set up their international stock exchanges, 17 banks including 12 domestic banks and five international banks issued a licence to operate, 100 plus broking services, depository clearing operations and over 19 companies have begun operations for non-life reinsurance business.
Other Benefits: The Centre’s IFSC-related relief measures include tax holiday for capital gains for aircraft leasing companies, tax exemption for aircraft lease rentals paid to foreign lessors, tax incentive for re-locating foreign funds in IFSC and exemption to investment divisions of foreign banks.
Dispute Resolution: Since it’s a hub of international financial services, the Singapore Arbitration Centre has also been set up for dispute resolution while the International Bullion Exchange will likely become functional soon.
Purpose: The idea behind the IFSC is to bring back the financial services and transactions which are carried out in offshore financial centres by Indian corporate entities and overseas branches and subsidiaries of financial institutions to India by offering world-class infrastructure and a globally benchmarked regulatory environment.
GIFT City: Opportunities
Integrated Development (Office, Residential & Institutional)
Multi Services Special Economic Zone (SEZ)
India’s 1st International Financial Services Centre (IFSC)
Smart, Sustainable & Green Infrastructure
Single Window Clearance
Quality of Life
GIFT City: Benefits
Central Government’s proactive support to develop the country as a hub of international financial services, the GIFT City has emerged as the preferred location for national and multinational firms.
Tax exemptions also make it lucrative for investment.
Job creation will occur in huge numbers. A study carried out in 2007 by M/s Mckinsey & Co had predicted that the GIFT City project will generate 10 lakh direct jobs by the year 2020.
Infrastructure plays a pivotal role in supporting the business environment and quality of life in GIFT City. A judicious combination with the latest technology and global best practices in infrastructure service delivery are in place. All of these come together to provide an international standard of working and living.
Latest developments regarding GIFT City
On October 18, 2014, it was announced that Bengaluru based Brigade Group would invest Rs. 500 Core to develop 100,000 square metres of built-up area with further options in developing and additional 160,000 square metres at a cost of Rs.600 crore.
The government of India has provisioned for Single regulator for GIFT City in the annual budget of the year 2020.
The major customers in the city are Oracle Inc., TCS, Bank of America, Cybage, BSE, NSE, MCX, STT (Singapore Telemedia), etc.
GUDC ( Gujarat Urban Development Corporation ) is developing the software development centre for various IT companies of Gujarat. This centre will focus on new innovations in the field of IoT, Analytics, BI and Robotics.
GIFT City’s first housing project of affordable housing ‘Janmangala’ was inaugurated in the year 2017. The project has around 300 dwellings.
On 5 December 2019, Business Standard reported that Bank of America opens Global Business Services Center at GIFT City
India’s biggest real estate developer Sobha Developer is constructing premium housing in GIFT City. This will be 32 storied building with world-class amenities
On 6 January 2020, Accor opens the first international hotel in GIFT City.