GIFT City Poised To Become One Of The World’s Premier Intl Financial Centres: Guj CM Patel

Gujarat chief minister Bhupendra Patel has said that Gujarat International Finance Tec (GIFT) City is poised to become one of the world’s premier international financial centres soon. 

“The GIFT City is undergoing massive infrastructure expansion following which the total land area will reach around 3,400 acres,” said Patel, in an email interaction to PTI ahead of the tenth Vibrant Gujarat Global Summit set to kick off from Wednesday (January 10).

The riverfront along the GIFT City is being developed with an international-level retail, recreation and entertainment zone. Metro connectivity to the GIFT City will also be operational by mid-2024, he added.

Patel said that as per Prime Minister Narendra Modi’s vision for the GIFT City to become a world-class financial, IT &ITeS and fintech hub, the state government held meetings with global and national financial sector companies as part of the international and national roadshows under the Vibrant Gujarat Global Summit (VGGS) 2024. 

“Several companies from countries like the UAE, Japan, Australia, Singapore and the US have expressed their interest in exploring investment opportunities in the GIFT-IFSC,” he added.

Elaborating on the GIFT-IFSC, Patel said there are 580 operational entities in the International Financial Services Centre (IFSC). Notable large-scale investments have already been flowing in GIFT-IFSC, including global players like Google, Bank of America, Morgan Stanley etc.

International universities are setting up their campuses, IndiGo and Air India are starting aircraft leasing activities, SGX Nifty trading as GIFT Nifty, and India International Bullion Exchange IFSC Limited (IIBX) is being set up in the GIFT City, he added.

The three-day Vibrant Gujarat Global Summit, to be inaugurated by PM Modi, 

will showcase Gujarat’s futuristic projects and investments (DREAM City, GIFT City, Dholera SIR, Ahmedabad-Mumbai High-Speed Rail), encompassing new and emerging sectors such as semiconductors, renewable energy, electric vehicles, green hydrogen, aerospace and defence, plug-and-play parks, artificial intelligence and smart greenfield cities.

“The strong global ties and a diversified GSDP make our economy exceptionally resilient. Our government has set a target to contribute 10 per cent to India’s GDP and becoming a $500 billion economy by 2026-27,” Patel said.

Last week, Azim Premji’s Bengaluru-based investment arm Premji Invest has obtained an in-principle approval to establish a family investment fund at GIFT City, situated in Prime Minister Narendra Modi’s home state, according to a Moneycoltrol report.

Promoted as a free-market pilot, GIFT City is poised to revolutionise India’s financial landscape, albeit with a much-needed streamlined set of regulations and procedures.

GIFT City aims to be the top preference for resident Indians eyeing offices in Singapore and London. The International Financial Services Centres Authority (IFSCA) provides a detailed framework for establishing such funds. IFSCA also targets the Indian diaspora seeking investment opportunities within the country and foreigners looking for prospects in emerging markets. 

The development comes close on the heels after the PM said that new forms of capital and digital technology will play an important role in the development of GIFT City. 

The Centre is looking to develop GIFT City, developed under the Special Economic Zones Act of 2005, with two distinctive zones – the GIFT SEZ (the non-IFSC area) and the GIFT IFSC, as a global financial hub. Additionally, there’s an emphasis on promoting GIFT as a virtual offshore destination for startups and investors.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.