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 center, 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 .[1][2]

GIFT City
City
Gujarat International Finance-Tec City
Night view of GIFT City
Night view of GIFT Ciy
Night view of GIFT City
Night view
Drone view of GIFT City
Drone view
BRIGADE INTERNATIONAL FINANCIAL CENTRE, GIFT City
Brigade International Financial Centre
TIER - IV Data Centre, GIFT City
TIER - IV Data Centre
BSE Brokers Forum, GIFT City
BSE Brokers Forum
GIFT One Tower
GIFT One Tower
GIFT One & Two Tower
GIFT One & Two Tower
Official logo of GIFT City
GIFT City is located in GIFT City
GIFT City
GIFT City
Location in Gujarat, India
GIFT City is located in Gujarat
GIFT City
GIFT City
GIFT City (Gujarat)
GIFT City is located in India
GIFT City
GIFT City
GIFT City (India)
GIFT City is located in Asia
GIFT City
GIFT City
GIFT City (Asia)
GIFT City is located in Earth
GIFT City
GIFT City
GIFT City (Earth)
Coordinates: 23°9′35″N 72°41′4″E
Country India
StateGujarat
DistrictGandhinagar
Administrative division
MetroAhmedabad Gandhinagar Metro
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
Websitegiftgujarat.in

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.[3][4][5][6] 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.[7][8]The total area for the development of GIFT is 886 acres out of which the SEZ (Special Economic Zone) constitutes 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).[9]

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 center."Tec-City" stands for "Technology-based SEZ" (Special Economic Zone).[10]

History
Prime Minister Narendra Modi in 2017 at the India International Exchange inauguration ceremony in GIFT City.[11][12]

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.[13]

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.[14]

On 2 October 2014, NetIndian reported a new World Trade Center would be set up in GIFT City as per an agreement between World Trade Center India Services Council (WTCS) and GIFT City Ltd. It would be completed within four years.[15]

BSE Broker's Forum planned to invest ₹120 crore 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.[16]

According to The Times of India on 18 October 2014, the Bangalore-based Brigade Group would invest ₹500 crore over the next few years to develop 100,000 square metres (1.1×10^6 sq ft) of built up area with a future option of investing another ₹600 crore to develop 160,000 square metres (1.7×10^6 sq ft).[17]

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.[18] In June, 2020, IL&FS concluded sale of its stake in GIFT-City for ₹32 crore equity value to the state government.[19]

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.[20]

On 5 December 2019, Business Standard reported that Bank of America opened a Global Business Services Center at GIFT.[21]

On 6 January 2020, Accor opened the first international hotel in GIFT City.[22]

On 20 January 2020, The Economic Times reported GIFT was ready to begin trading in rupee-dollar in the futures market.[23]

In July 2022, JPMorgan Chase, Deutsche Bank and Mitsubishi UFJ Financial Group opened new offices at the International Financial Services Centre.[24] Prime Minister Narendra Modi formally opened Singapore Exchange's futures trading operation "Nifty",[25] and India's first international bullion exchange was opened.[26]

Implementation

Construction timeline
Utility Tunnel at GIFT City

Major construction events in GIFT City, Gujarat, India:

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.[27]
  • Construction of GIFT City begins.

2008:

  • Land acquisition for the GIFT City project begins. The government acquires about 886 acres of land near Gandhinagar, the capital of Gujarat.[28]
  • The project receives approval from the Union Cabinet, which marks the formal beginning of the project.[29]

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.[30]
  • GIFT City is formally inaugurated by then-Prime Minister of India, Dr. Manmohan Singh.
  • GIFT City's first operational bank, Bank of Baroda, begins it's 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.[31]

2014:

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 center, owned by Netmagic, is completed.

2016:

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 center, 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.

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[32]
  • Ernst & Young - Advisory services to various aspects of GIFT City, such as legal and regulatory compliance, tax planning, and risk management.[33]
  • 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.[34][4]
  • Deloitte - provides a tax planning, regulatory compliance, and risk management services to GIFT City.[6]
  • 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.[35][36]

Status

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.[34] On 11 September 2019, Tapan Ray, managing director and Group CEO of GIFT City, said the city had attracted around ₹11,000 crore of investment.[37]

Divisions
GIFT City Divisions
Zones Area
SEZ - PA 61.1829 Ha (130.5acres)
SEZ - N PA 44.2557 Ha (130.5 acres)
TOTAL (SEZ) 105.4386 Ha (261 acres)
DTA 252.93 Ha (625 acres)
GRAND TOTAL 358.3686 Ha (886 acres)

The total area for the development of GIFT is 886 acres out of which the SEZ (Special Economic Zone) constitutes 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).[38][39]

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 center, 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 centers.
  • 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.

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 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.[40]

  • 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

References
  1. Reporter, B. S. (3 October 2017). "GIFT City's IFSC bags 10th place in Global Financial Centres Index". www.business-standard.com. Retrieved 22 March 2023.
  2. S, Rajalakshmi (2 October 2017). "GIFT-IFSC ranks at 10th place in Global Financial Centres Index". www.thehindubusinessline.com. Retrieved 22 March 2023.
  3. "THE GUJARAT INTERNATIONAL FINANCE TEC-CITY (GIFT)". www.gudcltd.com. Retrieved 2 February 2018.
  4. "GIFT makes steady progress; witnesses a 'hockey stick growth curve'". www.businesstoday.in. Retrieved 1 November 2018.
  5. Subramanian, N. Sundaresha (1 February 2018). "More gifts for GIFT City may stop flight of capital to Singapore". The Economic Times. Retrieved 2 February 2018.
  6. "Developments of Ahmedabad". Archived from the original on 31 December 2019. Retrieved 14 September 2018.
  7. "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.
  8. "Ahmedabad- Metro Rail: Work on phase 2 of the project to begin in June 2020; details". The Financial Express. 18 November 2019. Retrieved 23 January 2020.
  9. Rodrigues, Jeanette; Sircar, Subhadip (29 November 2022). "India's Free-Market Oasis Aims to Take On Singapore and Dubai". Bloomberg News. Retrieved 29 November 2022.
  10. "Gujarat International Finance Tec-City" (PDF). GIFT City.
  11. "PM Modi to inaugurate 16-storey international exchange in Gujarat to rival Singapore, Dubai". India Times. Indo-Asian News Service. 9 January 2017. Retrieved 16 January 2017.
  12. "PM Narendra Modi launches India's first international stock exchange". India Today. 13 January 2017. Retrieved 16 January 2017.
  13. "Singapore firms get Gujarat International Finance Tec City (GIFT) invite - The Economic Times". Articles.economictimes.indiatimes.com. 15 December 2011. Retrieved 3 January 2017.
  14. "China's Huawei to provide tech for GIFT". The Times of India. Archived from the original on 16 January 2012. Retrieved 3 January 2017.
  15. "GIFT City, GCCI and World Trade Centre in pact for trade development | NetIndian". Netindian.in. 2 October 2014. Retrieved 3 January 2017.
  16. "BSE to set up commercial tower at GIFT city in Gujarat | Latest News & Updates at Daily News & Analysis". Dnaindia.com. 15 October 2014. Retrieved 3 January 2017.
  17. "Brigade Group to invest Rs 500 crore in GIFT City as co-developer - Times of India". Timesofindia.indiatimes.com. 18 October 2014. Retrieved 3 January 2017.
  18. "Gujarat Will Buy Crisis-Hit IL&FS Stake in 'Gift City', Says CM Vijay Rupani". The Wire.
  19. "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. Retrieved 9 June 2020.
  20. Bhayani, Rajesh (14 January 2019). "Boost for AIF biz at Gift city as top fund administrator gets license" – via Business Standard.
  21. Umarji, Vinay (6 December 2019). "Bank of America opens Global Business Services Center at GIFT-IFSC". Business Standard India. Retrieved 23 January 2020.
  22. "Accor opens the first international hotel in GIFT City". Travel Daily. 6 January 2020. Retrieved 23 January 2020.
  23. Das, Saikat (20 January 2020). "GIFT City to begin trading in rupee-dollar in futures market". The Economic Times. Retrieved 23 January 2020.
  24. "The Economic Times: JPMorgan, Deutsche and MUFG's entry to give Gift City a big boost".
  25. "PM to launch SGX Nifty trade at GIFT". The Economic Times.
  26. "India's first international bullion exchange to be inaugurat ." The Times of India.
  27. "Gujarat International Finance Tech-City [GIFT City] | UPSC Notes". BYJUS. Retrieved 28 March 2023.
  28. "GIFT city" (PDF).
  29. "Special Report: The remaking of Narendra Modi". Reuters. 12 July 2013. Retrieved 28 March 2023.
  30. Standard, Business (10 February 2015). "GIFT City completes first phase of Online Development Approval System". www.business-standard.com. Retrieved 28 March 2023. {{cite web}}: |first= has generic name (help)
  31. "GIFT One - The Skyscraper Center". www.skyscrapercenter.com. Retrieved 28 March 2023.
  32. "ABB will power up the world's biggest financial district". Abb.com. 13 August 2008. Retrieved 3 January 2017.
  33. "How Budget 2023 has increased the attractiveness for IFSC, GIFT IFSC". www.ey.com. Retrieved 28 March 2023.
  34. "News Update 2015 | VG 2015 | Vibrant Gujarat Global Summit 2017". Vibrantgujarat.com. Retrieved 3 January 2017.
  35. "GIFT city - Grant Thornton".
  36. "Gujarat International Finance Tec (GIFT) City". Grant Thornton Bharat. Retrieved 31 March 2023.
  37. Rishi Iyengar. "30,000 jobs in next 3 years immediate priority, says Tapan Ray, MD, Gujarat International Finance Tec-city". CNN.
  38. "GIFT City division" (PDF). wtcgiftcity.org.
  39. ShivaniDarji2 (9 May 2020). "Gift city Presentation". {{cite journal}}: Cite journal requires |journal= (help)
  40. "Developments of Ahmedabad". Archived from the original on 31 December 2019. Retrieved 14 September 2018.
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