GIFT City

GIFT City
Gujarat International Finance Tec-City (GIFT City) is a central business district under construction in Gandhinagar 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 Global Financial Centres Index. As of June 2023, it is home to 23 multi-national banks including HSBC, JP Morgan and Barclays; 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 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, and is expected to be completed by March 2024. The total area for the development of GIFT is out of which the special economic zone (SEZ) constitutes . 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).
Etymology
The name "GIFT" is an acronym that stands for "Gujarat International Finance Tec-City".The word "Gujarat" refers to the state where the city is located, which is located in western India. "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, 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 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 to build a commercial tower to set up back-office operations. They were allocated 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 over the next few years to develop of built up area with a future option of investing another to develop .
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 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:
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 clihttps://www.grantthornton.in/campaign/gujarat-international-finance-tec-city/ents operating in GIFT City.
Status
As part of Phase-I development, around of built-up area has already been allotted from the 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 of investment.
Divisions
The total area for the development of GIFT is out of which the SEZ (Special Economic Zone) constitutes . 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:
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.
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).
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.
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.
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 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
Gift Regalia
References
External links
International Financial Services Centres Authority
GIFT City Helpdesk Application or Helpdesk Website
GIFT City
Proposed infrastructure in Gujarat
Economy of Gujarat
Science and technology in Gujarat
Financial districts in India
Buildings and structures under construction in India
Planned communities in India
Financial services in India
Chief Ministership of Narendra Modi
Economy of Ahmedabad