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GIFT City

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Gujarat International Finance Tec-City, also called GIFT City, is a central business district under construction in the Gandhinagar district as suburb city of Ahmedabad in Ahmedabad Metropolitan Region 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.[1][2] 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.[3][4]

GIFT City
City
Gujarat International Finance-Tec City
Drone view of GIFT City
Drone view
Night view of GIFT City
Night view
Brigade International Financial Centre, GIFT City
BIFC
TIER - IV Data Centre, GIFT City
TIER - IV Data Centre
GIFT One & Two Tower
GIFT One & Two Tower
GIFT One Tower
GIFT One Tower
BSE Brokers Forum, GIFT City
BSE Brokers Forum
Official logo of GIFT City
Map
Map
Map
Map
Map
Map of GIFT City
Country India
StateGujarat
DistrictGandhinagar
Administrative division
MetroAhmedabad Metro
Establishment10 April 2015
Founded byNarendra Modi
Government
 • BodyGujarat International Finance Tec-City Company Limited
Area
 • Total15.5 km2 (6.0 sq mi)
Language
 • OfficialGujarati, Hindi, English
Time zoneUTC+5:30 (IST)
Pincode(s)
382426
Area code091
Websitewww.giftgujarat.in Edit this at Wikidata

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.[5][6][7][8] 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[clarification needed] for construction, which would connect GIFT City to the Ahmedabad Metro network. This is expected to be completed by March 2024.[9][10] 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).[11]

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.[12]

Etymology

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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).[13]

History

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Prime Minister Narendra Modi in 2017 at the India International Exchange inauguration ceremony in GIFT City.[14][15]

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.[16]

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.[17]

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.[18]

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.[19]

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 (1.7×10^6 sq ft).[20]

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.[21] 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.[22]

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.[23]

On 5 December 2019, Business Standard reported that Bank of America opened a Global Business Services Center at GIFT.[24]

On 6 January 2020, Accor opened the first international hotel in GIFT City.[25]

On 20 January 2020, The Economic Times reported GIFT was ready to begin trading in rupee-dollar in the futures market.[26]

In July 2022, JPMorgan Chase, Deutsche Bank and Mitsubishi UFJ Financial Group opened new offices at the International Financial Services Centre.[27] Prime Minister Narendra Modi formally opened Singapore Exchange's futures trading operation "Nifty",[28] and India's first international bullion exchange was opened.[29]

Implementation

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Construction timeline

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Utility Tunnel at GIFT City

Major construction events in GIFT City, Gujarat, India:

Consultants

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  • 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[38]
  • Ernst & Young - Advisory services to various aspects of GIFT City, such as legal and regulatory compliance, tax planning, and risk management.[39]
  • 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.[40][6]
  • Deloitte - provides a tax planning, regulatory compliance, and risk management services to GIFT City.[8]
  • Grant Thornton - They offer a range of services, including accounting, tax, and advisory services, which can be beneficial for client[41][42][43]

Status

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As part of Phase-I development, around 780,000 square metres (8.4×10^6 sq ft) of built-up area has already been allotted from the 1,200,000 square metres (13×10^6 sq ft) available for commercial, residential and social use.[40] 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.[44]

Divisions

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GIFT City 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).[45][46]

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

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GIFT City, through its International Financial Services Centre (IFSC), provides several tax benefits aimed at luring both domestic and international investments.[47] 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.[48][49]

Liquor Policy in GIFT City

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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.[50][51][52]

Administration

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Gujarat International Finance Tec-City Company Limited

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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

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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.[8]

  • 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

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References

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  1. ^ Reporter, B. S. (3 October 2017). "GIFT City's IFSC bags 10th place in Global Financial Centres Index". www.business-standard.com. Archived from the original on 22 April 2023. Retrieved 22 March 2023.
  2. ^ S, Rajalakshmi (2 October 2017). "GIFT-IFSC ranks at 10th place in Global Financial Centres Index". www.thehindubusinessline.com. Archived from the original on 22 April 2023. Retrieved 22 March 2023.
  3. ^ "Why Google Chose Gujarat For Its Global Fintech Operations Hub". Forbes India. Archived from the original on 29 June 2023. Retrieved 29 June 2023.
  4. ^ "Google To Set Up A Centre In GIFT City — Will This Boost The Fintech Ecosystem In India?". Forbes India. Archived from the original on 26 June 2023. Retrieved 26 June 2023.
  5. ^ "THE GUJARAT INTERNATIONAL FINANCE TEC-CITY (GIFT)". www.gudcltd.com. Archived from the original on 9 June 2019. Retrieved 2 February 2018.
  6. ^ a b "GIFT makes steady progress; witnesses a 'hockey stick growth curve'". www.businesstoday.in. 17 January 2018. Archived from the original on 25 June 2018. Retrieved 1 November 2018.
  7. ^ Subramanian, N. Sundaresha (1 February 2018). "More gifts for GIFT City may stop flight of capital to Singapore". The Economic Times. Archived from the original on 24 June 2018. Retrieved 2 February 2018.
  8. ^ a b c "Developments of Gandhinagar". Archived from the original on 31 December 2019. Retrieved 14 September 2018.
  9. ^ "Gujarat International Finance Tec-City to have its own metro stations". The Times of India. Archived from the original on 5 November 2013. Retrieved 3 January 2017.
  10. ^ "Ahmedabad- Metro Rail: Work on phase 2 of the project to begin in June 2020; details". The Financial Express. 18 November 2019. Archived from the original on 19 November 2019. Retrieved 23 January 2020.
  11. ^ Rodrigues, Jeanette; Sircar, Subhadip (29 November 2022). "India's Free-Market Oasis Aims to Take On Singapore and Dubai". Bloomberg News. Archived from the original on 29 November 2022. Retrieved 29 November 2022.
  12. ^ Langa, Mahesh (7 November 2023). "Two Australian Universities open in GIFT City". The Hindu. Retrieved 7 November 2023.
  13. ^ "Gujarat International Finance Tec-City" (PDF). GIFT City. Archived (PDF) from the original on 5 April 2023. Retrieved 30 March 2023.
  14. ^ "PM Modi to inaugurate 16-storey international exchange in Gujarat to rival Singapore, Dubai". India Times. Indo-Asian News Service. 9 January 2017. Archived from the original on 11 January 2017. Retrieved 16 January 2017.
  15. ^ "PM Narendra Modi launches India's first international stock exchange". India Today. 13 January 2017. Archived from the original on 25 October 2021. Retrieved 16 January 2017.
  16. ^ "Singapore firms get Gujarat International Finance Tec City (GIFT) invite - The Economic Times". Articles.economictimes.indiatimes.com. 15 December 2011. Archived from the original on 22 January 2012. Retrieved 3 January 2017.
  17. ^ "China's Huawei to provide tech for GIFT". The Times of India. Archived from the original on 16 January 2012. Retrieved 3 January 2017.
  18. ^ "GIFT City, GCCI and World Trade Centre in pact for trade development | NetIndian". Netindian.in. 2 October 2014. Archived from the original on 8 November 2014. Retrieved 3 January 2017.
  19. ^ "BSE to set up commercial tower at GIFT city in Gujarat | Latest News & Updates at Daily News & Analysis". Dnaindia.com. 15 October 2014. Archived from the original on 18 November 2014. Retrieved 3 January 2017.
  20. ^ "Brigade Group to invest Rs 500 crore in GIFT City as co-developer - Times of India". Timesofindia.indiatimes.com. 18 October 2014. Archived from the original on 20 October 2014. Retrieved 3 January 2017.
  21. ^ "Gujarat Will Buy Crisis-Hit IL&FS Stake in 'Gift City', Says CM Vijay Rupani". The Wire. Archived from the original on 27 November 2018. Retrieved 29 January 2019.
  22. ^ "IL&FS sells 50% stake in GIFT City to Gujarat govt, reduces consolidated debt by over Rs 1,200 crore". The Economic Times. 8 June 2020. Archived from the original on 21 June 2020. Retrieved 9 June 2020.
  23. ^ Bhayani, Rajesh (14 January 2019). "Boost for AIF biz at Gift city as top fund administrator gets license". Archived from the original on 29 January 2019. Retrieved 29 January 2019 – via Business Standard.
  24. ^ Umarji, Vinay (6 December 2019). "Bank of America opens Global Business Services Center at GIFT-IFSC". Business Standard India. Archived from the original on 14 January 2020. Retrieved 23 January 2020.
  25. ^ "Accor opens the first international hotel in GIFT City". Travel Daily. 6 January 2020. Archived from the original on 15 February 2023. Retrieved 23 January 2020.
  26. ^ Das, Saikat (20 January 2020). "GIFT City to begin trading in rupee-dollar in futures market". The Economic Times. Archived from the original on 10 July 2020. Retrieved 23 January 2020.
  27. ^ "The Economic Times: JPMorgan, Deutsche and MUFG's entry to give Gift City a big boost". Archived from the original on 12 July 2022. Retrieved 12 July 2022.
  28. ^ "PM to launch SGX Nifty trade at GIFT". The Economic Times. Archived from the original on 12 July 2022. Retrieved 12 July 2022.
  29. ^ "India's first international bullion exchange to be inaugurat ." The Times of India. Archived from the original on 12 July 2022. Retrieved 12 July 2022.
  30. ^ "GIFT city" (PDF). Archived (PDF) from the original on 22 March 2023. Retrieved 28 March 2023.
  31. ^ "Special Report: The remaking of Narendra Modi". Reuters. 12 July 2013. Archived from the original on 22 March 2023. Retrieved 28 March 2023.
  32. ^ Standard, Business (10 February 2015). "GIFT City completes first phase of Online Development Approval System". www.business-standard.com. Archived from the original on 28 March 2023. Retrieved 28 March 2023. {{cite web}}: |first= has generic name (help)
  33. ^ "GIFT One - The Skyscraper Center". www.skyscrapercenter.com. Archived from the original on 21 March 2023. Retrieved 28 March 2023.
  34. ^ "Google to open global fintech operation centre at GIFT City". The Times of India. 25 June 2023. ISSN 0971-8257. Archived from the original on 30 June 2023. Retrieved 3 July 2023.
  35. ^ "Google CEO Sundar Pichai unveils plans for fintech hub in GIFT City, Gujarat". cnbctv18.com. 24 June 2023. Archived from the original on 3 July 2023. Retrieved 3 July 2023.
  36. ^ "SGX Nifty is now Gift Nifty!". TalkOptions. 5 July 2023. Archived from the original on 20 July 2023. Retrieved 18 July 2023.
  37. ^ Agarwal, Nikhil (3 July 2023). "SGX Nifty is now Gift Nifty. Timings, how to check data & key changes explained". The Economic Times. Archived from the original on 6 July 2023. Retrieved 18 July 2023.
  38. ^ "ABB will power up the world's biggest financial district". Abb.com. 13 August 2008. Archived from the original on 24 August 2008. Retrieved 3 January 2017.
  39. ^ "How Budget 2023 has increased the attractiveness for IFSC, GIFT IFSC". www.ey.com. Archived from the original on 28 March 2023. Retrieved 28 March 2023.
  40. ^ a b "News Update 2015 | VG 2015 | Vibrant Gujarat Global Summit 2017". Vibrantgujarat.com. Archived from the original on 11 November 2014. Retrieved 3 January 2017.
  41. ^ operating in GIFT City. "GIFT city - Grant Thornton". {{cite web}}: Check |url= value (help)
  42. ^ "GIFT city - Grant Thornton". Archived from the original on 28 March 2023. Retrieved 28 March 2023.
  43. ^ "Gujarat International Finance Tec (GIFT) City". Grant Thornton Bharat. Archived from the original on 31 March 2023. Retrieved 31 March 2023.
  44. ^ Rishi Iyengar (11 September 2019). "30,000 jobs in next 3 years immediate priority, says Tapan Ray, MD, Gujarat International Finance Tec-city". CNN. Archived from the original on 20 September 2019. Retrieved 9 January 2020.
  45. ^ "GIFT City division" (PDF). wtcgiftcity.org. Archived (PDF) from the original on 28 March 2023. Retrieved 28 March 2023.
  46. ^ ShivaniDarji2 (9 May 2020). "Gift city Presentation". Archived from the original on 28 March 2023. Retrieved 28 March 2023. {{cite journal}}: Cite journal requires |journal= (help)CS1 maint: numeric names: authors list (link)
  47. ^ "GIFT City explained: History & tax incentives of India's first 'Smart City'". The Hindu. 29 August 2022. ISSN 0971-751X. Archived from the original on 18 May 2023. Retrieved 20 June 2023.
  48. ^ "Tax Benefits for GIFT City: Unlocking India's Financial Potential". 16 June 2023. Archived from the original on 20 June 2023. Retrieved 20 June 2023.
  49. ^ "GIFT City: A Game-changer for Indian Startup Ecosystem". 27 April 2023. Archived from the original on 20 June 2023. Retrieved 20 June 2023.
  50. ^ "Liquor allowed in Gujarat's GIFT City, but is this the only game changer it needs?". India Today. 26 December 2023. Retrieved 26 December 2023.
  51. ^ "Opinion: Gujarat Hub Turns "Ghost Town" After Work Hours. Solution: Liquor". NDTV.com. Retrieved 26 December 2023.
  52. ^ www.ETRetail.com. "Liquor in GIFT City: Industry leaders hail Gujarat govt's move as progressive, bold - ET Retail". ETRetail.com. Retrieved 26 December 2023.
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