Gujarat International Finance Tec-City, also called GIFT City, is a central business district under construction in the Ahmedabad district in Gujarat, India. It is India's first operational greenfield smart city and international financial services centre, which the Government of Gujarat promoted as a greenfield project. In 2020 GIFT IFSC bagged 10th place in Finance Industry and top rank in emerging financial centres in the Global Financial Centres Index. As of June 2023, it is home to 23 multi-national banks, including HSBC, JP Morgan, and Barclays. Furthermore, it includes 35 fintech entities, two international stock exchanges with average daily trading volumes of $30.6 billion, as well as India's first international bullion exchange with 75 onboarded jewellers.

The city is located on the banks of the Sabarmati River and is around 12 km (7.5 mi) from Sardar Vallabhbhai Patel International Airport. The city is designed so residents can walk to work, and includes commercial, financial and residential complexes. The city is connected through 4-6 lane state and national highways. A metro station is also planned for construction, which would connect GIFT City to the Ahmedabad Metro network. This is expected to be completed by March 2024. The total area for the development of GIFT is 359 hectares (886 acres) out of which the special economic zone (SEZ) constitutes 106 hectares (261 acres). The project area under development can hence be classified under the SEZ area and the non-SEZ area (also known as the Domestic Tariff area or the DTA).

With the opening of the first campuses of two Australian universities on 7 November 2023 in the presence of Indian counterpart Dharmendra Pradhan and Australian Education Minister Jason Clare, GIFT City is beginning to establish itself as the centre of foreign universities in the nation.

Etymology

The name "GIFT" is an acronym that stands for "Gujarat International Finance Tec-City". The word "Gujarat" refers to the western Indian state where the city is located. "International" signifies that the city is intended to be a global hub for financial and business services, attracting businesses and investors from around the world. "Finance" highlights the primary focus of the development, which is to create a world-class financial centre."Tec-City" stands for "Technology-based SEZ" (Special Economic Zone).

History

On 15 December 2011, The Economic Times reported city officials in GIFT were inviting companies from Singapore that wished to expand but could not do so due to a lack of land in Singapore to open their businesses in GIFT. Investments from banks, private equity companies, insurance companies and asset management companies were considered.

On 26 December 2011, The Times of India reported China's technology giant Huawei was likely to provide technology to GIFT. According to Eric Yu, president, of enterprise business of Huawei India, this technology included networks, data centres and surveillance.

On 2 October 2014, NetIndian reported a new World Trade Centre would be set up in GIFT City as per an agreement between the World Trade Centre India Services Council (WTCS) and GIFT City Ltd. It would be completed within four years.

BSE Broker's Forum planned to invest ₹1.2 billion (equivalent to ₹1.7 billion or US$20 million in 2023) to build a commercial tower to set up back-office operations. They were allocated 28,000 square metres (300,000 sq ft) to develop the commercial tower with the likelihood of setting up an exchange office.

According to The Times of India on 18 October 2014, the Bangalore-based Brigade Group would invest ₹5 billion (equivalent to ₹8.0 billion or US$96 million in 2023) over the next few years to develop 0.10 million square metres (1.1 million square feet) of built-up area with a future option of investing another ₹6 billion (equivalent to ₹9.6 billion or US$110 million in 2023) to develop 0.16 million square metres (1.7×10^ sq ft).

In November 2018, The Wire reported the Government of Gujarat State would buy out the 50% stake of beleaguered Infrastructure Leasing & Financial Services (IL&FS) in the GIFT City to minimize delays to the project. In June, 2020, IL&FS concluded sale of its stake in GIFT-City for ₹320 million (equivalent to ₹380 million or US$4.5 million in 2023) equity value to the state government.

According to Business Standard, OPS Fund Services, a subsidiary of OPS Global, Singapore, received a license to open in the International Financial Service Centre at GIFT city.

On 5 December 2019, Business Standard reported that Bank of America opened a Global Business Services Center at GIFT.

On 6 January 2020, Accor opened the first international hotel in GIFT City.

On 20 January 2020, The Economic Times reported GIFT was ready to begin trading in rupee-dollar in the futures market.

In July 2022, JPMorgan Chase, Deutsche Bank and Mitsubishi UFJ Financial Group opened new offices at the International Financial Services Centre. Prime Minister Narendra Modi formally opened Singapore Exchange's futures trading operation "Nifty", and India's first international bullion exchange was opened.

Implementation

Construction timeline

Major construction events in GIFT City, Gujarat, India:

Timeline

2007: The Gujarat International Finance Tec-City (GIFT City) project is announced by the Government of Gujarat as an ambitious plan to develop a world-class financial and business district in Gujarat. Construction of GIFT City begins. 2008: Land acquisition for the GIFT City project begins. The government acquires about 359 hectares (886 acres) of land near Gandhinagar, the capital of Gujarat. The project receives approval from the Union Cabinet, which marks the formal beginning of the project. 2009: GIFT SEZ area is notified. 2010: Construction begins on the first phase of the GIFT City project, which includes the development of basic infrastructure such as roads, water supply, drainage, and sewage systems. The first tower, called GIFT One, is inaugurated. The 29-storey building is built by the IL&FS (Infrastructure Leasing & Financial Services) group and serves as the headquarters for many financial companies. 2012: The first phase of the GIFT City project is completed, which includes the development of basic infrastructure and the construction of the GIFT One tower. GIFT City is formally inaugurated by then-Prime Minister of India, Dr. Manmohan Singh. GIFT City's first operational bank, Bank of Baroda, begins its operations. 2013: Construction begins on the second phase of the GIFT City project, which includes the development of more office buildings, residential apartments, and social infrastructure such as schools, hospitals, and retail spaces. The GIFT SEZ (Special Economic Zone) is notified by the government, which allows companies operating within the zone to enjoy tax and other benefits. GIFT City's first IFSC tower, GIFT One Tower A, is inaugurated. 2014: GIFT City is selected as a smart city under the Smart Cities Mission of the Government of India. 2015: The second phase of the GIFT City project is completed, which includes the development of more office buildings, residential apartments, and social infrastructure. The first IFSC (International Financial Services Centre) tower, called GIFT Two, is inaugurated. The 28-storey building is built by the IL&FS group and serves as the hub for international financial services companies. Construction of GIFT City's first data centre, owned by Netmagic, is completed. 2016: GIFT City's first international exchange, India International Exchange, starts operations. 2017: Construction begins on the third phase of the GIFT City project, which includes the development of more office buildings, residential apartments, and social infrastructure such as parks and open spaces. The GIFT SEZ is granted formal approval by the government, which enables companies operating within the zone to enjoy more benefits and incentives. 2019: The third phase of the GIFT City project is completed, which includes the development of more office buildings, residential apartments, and social infrastructure. The second IFSC tower, called GIFT Three, is inaugurated. The 30-storey building is built by the IL&FS group and serves as a hub for international financial services companies. 2021: Construction begins on the fourth and final phase of the GIFT City project, which includes the development of a retail and entertainment zone, a convention centre, and residential towers. The GIFT City project is awarded the "Smart City of the Year" award by the National Institute of Urban Affairs, which recognizes the city's innovative use of technology, sustainability, and urban planning. 2023: Google to open global fintech operation centre at GIFT City SGX Nifty was renamed as GIFT Nifty and started its trading operation from Gift City from the date 3 July 2023. It is a collaboration of Singapore Exchange and NSE India.

Consultants

• Owner - The Amazing
• Design and Architecture - East China Architectural Design & Research Institute (ECADI) and Fairwood Consultants India
• Construction - AECOM India, L&T Infrastructure Engineering, CBRE India
• ICT Advisory Services - British Telecom
• Market Demand Assessment - McKinsey & Company
• Talent Demand Assessment - Hewitt Associates
• Environmental Assessment - IL&FS Ecosmart Ltd
• Process Management - IL&FS Infrastructure Development Corporation Ltd
• Power Management - ABB Group
• Ernst & Young - Advisory services to various aspects of GIFT City, such as legal and regulatory compliance, tax planning, and risk management.
• KPMG - provides a consulting services to GIFT City for financial services, real estate, and infrastructure, which can be beneficial for clients operating in GIFT City.
• Deloitte - provides a tax planning, regulatory compliance, and risk management services to GIFT City.
• Grant Thornton - They offer a range of services, including accounting, tax, and advisory services, which can be beneficial for client

Status

As part of Phase-I development, around 780,000 square metres (8.4×10^ sq ft) of built-up area has already been allotted from the 1,200,000 square metres (13×10^ sq ft) available for commercial, residential and social use. On 11 September 2019, Tapan Ray, managing director and Group CEO of GIFT City, said the city had attracted around ₹110 million (equivalent to ₹140 million or US$1.6 million in 2023) of investment.

Divisions

Zones	Area
SEZ - PA	61.1829 ha (151.186 acres)
SEZ - N PA	44.2557 ha (109.358 acres)
TOTAL (SEZ)	105.4386 ha (260.544 acres)
DTA	252.93 ha (625.0 acres)
GRAND TOTAL	358.3686 ha (885.548 acres)

The total area for the development of GIFT is 359 hectares (886 acres) out of which the SEZ (Special Economic Zone) constitutes 106 hectares (261 acres). The project area under development can hence be classified under the SEZ area and the Non-SEZ area (also known as the Domestic Tariff area or the DTA).

GIFT City is divided into two zones:

1. Domestic Tariff Area (DTA): This zone is meant for domestic companies and is subject to Indian laws and regulations. Companies operating within this zone can cater to the domestic market and benefit from various tax incentives offered by the Indian government.
2. Special Economic Zone (SEZ): This zone is meant for international companies and is designed to promote exports and foreign investments. Companies operating within this zone enjoy a range of incentives, including tax exemptions, duty-free imports and exports, and simplified regulatory procedures.The SEZ has been further divided into two zones: SEZ PA (Processing Area) and SEZ NPA (Non-Processing Area).
   1. The SEZ PA is the core of the GIFT City and is designed to provide state-of-the-art infrastructure to various financial institutions, banks, and other businesses. The SEZ PA comprises commercial buildings, residential towers, a convention centre, and a recreational area. This zone is primarily intended for businesses that require specialized infrastructure, tax incentives, and other benefits provided by the SEZ Act.
   2. On the other hand, the SEZ NPA is the area surrounding the SEZ PA and is intended to provide support services to the businesses operating in the SEZ PA. It includes residential apartments, hotels, hospitals, schools, and other support facilities.

The city is divided into the following divisions by area:

• International Financial Services Centre (IFSC): This division is the main focus of GIFT City and is India's first IFSC. It is designed to cater to the financial services industry and provides a world-class business environment.
• Domestic Finance Centre (DFC): This division is designed to cater to the needs of the domestic financial services industry. It provides a platform for the growth of Indian financial services companies.
• Multi-services SEZ: This division is a Special Economic Zone (SEZ) that provides a platform for companies to set up their businesses in various sectors such as IT/ITES, engineering, biotechnology, and pharmaceuticals.
• Social and Civic Infrastructure: This division provides world-class social and civic infrastructure to the residents of GIFT City, including schools, hospitals, and shopping centres.
• Residential Zone: This division provides residential properties to the people working in GIFT City. It is designed to provide a world-class living environment to the residents.
• Transit-Oriented Development (TOD): This division is designed to promote sustainable transportation and connectivity in GIFT City. It includes a network of roads, pedestrian walkways, and cycle tracks.

Tax benefits

GIFT City, through its International Financial Services Centre (IFSC), provides several tax benefits aimed at luring both domestic and international investments. These incentives include exemptions from certain taxes for companies under the new tax regime, tax holidays for specific sectors, and GST-free services for IFSC SEZ units. Further perks include various state subsidies and tax exemptions for exchanges established under the IFSC.

Liquor Policy in GIFT City

In December 2023, the Government of Gujarat authorized the controlled consumption of liquor within Gujarat International Finance Tec-City (GIFT City). This policy permits liquor to be served in restaurants, hotels, and clubs within GIFT City, but only to its permanent employees and their authorized visitors, as sanctioned by the respective companies' human resources departments. The sale of liquor bottles remains prohibited.

Administration

Gujarat International Finance Tec-City Company Limited

The Government of Gujarat formed "Gujarat International Finance Tec-City Company Limited" (GIFTCL) to develop and implement GIFT City through its venture Gujarat Urban Development Company Limited (GUDCL). GIFT City is an 359-hectare (886-acre) integrated project that creates 62 million square feet of built-up area, including 67% commercial space, 22% residential space and 11% community space.

GIFT Managing Bodies

For the purpose of implementation of the SEZ, GIFT Company Limited has set up an SPV (Special Purpose Vehicle) (100% subsidiary of GIFTCL) namely GIFT SEZ Ltd, designated as the developer organization of the SEZ. GIFTCL has also set up 5 subsidiary companies for the implementation of specialized infrastructure including Power, Water, ICT (Information & Communication Technology), District Cooling and solid waste management.

• Gift Power Company Limited
• Gift Waste Management Services Limited
• Gift Water Infrastructure Limited
• Gift ICT Services Limited
• Gift Collective Investment Management Company Limited
• Gift SEZ Limited

See also

• Diamond Research and Mercantile City
• Dholera