WHAT?

Gujarat International Finance Tec-City (GIFT City), located in Gandhinagar, Gujarat, is India's first operational smart city and International Financial Services Centre (IFSC). Envisioned to rival global financial hubs like Singapore, Dubai, and London, GIFT City is a dynamic blend of financial services, tech innovation, smart infrastructure, and sustainable urban planning. Spread over 886 acres, GIFT City is transforming India’s economic landscape with futuristic ambitions and world-class facilities.

IT'S CORE FUNCTIONS

1. Financial Services and IFSC Operations : At the heart of GIFT City is its International Financial Services Centre (IFSC)—a regulatory sandbox that enables offshore financial transactions in foreign currencies with liberalized rules.

2. Banking : As of March 2025, GIFT City hosts 31 International Banking Units (IBUs) including HSBC, Standard Chartered, Bank of America, and top Indian banks like HDFC and SBI, offering services like offshore lending, trade finance, and deposits.

3. Capital Markets: Home to India INX and NSE IFSC, two global stock exchanges that operate 22 hours a day, with a daily turnover exceeding $30.6 billion (June 2023). Instruments include equities, derivatives, commodities, and currencies.

4. Insurance & Reinsurance: Companies can offer direct insurance, reinsurance, and intermediary services with tax exemptions and relaxed compliance.

5. Fund Management: GIFT attracts Alternate Investment Funds (AIFs), portfolio managers, and private equity/VC funds facilitating cross-border investment flows.

6. International Bullion Exchange (IIBX): Launched for gold and silver trading, the IIBX had onboarded 102 qualified jewelers and 22 suppliers by December 2023, acting as a central bullion gateway.

7. Technology and FinTech Ecosystem : GIFT City is also a FinTech nucleus offering a regulatory sandbox for startups to pilot innovations in a live but controlled environment.

8. Global In-House Centres (GICs): Global tech firms like Oracle, IBM, Google, Wipro, Infosys, and Accenture have set up units for AI, robotics, blockchain, data analytics, and digital banking services.

9. IT and Tech Services: From cloud computing to cybersecurity, GIFT provides infrastructure for India’s emerging digital financial backbone.

10. SEZ and Domestic Tariff Area (DTA) : GIFT City includes a Special Economic Zone (SEZ) and a Domestic Tariff Area (DTA), creating a dual ecosystem. Spanning 106 hectares, SEZ companies enjoy GST and stamp duty exemptions, duty-free imports/exports, and a 10-year tax holiday. Functioning as a Domestic Tariff Area (DTA) which is meant for domestic companies in IT, finance, and consulting, GIFT offers lower regulatory friction and tax benefits.

11. Emerging and Ancillary Services : GIFT City is expanding into aircraft and ship leasing, professional services, and green finance. Firms like Air India have begun aircraft leasing from GIFT. By January 2024, 8 ship leasing companies were registered.

12. Support Services: Global advisory giants like Ernst & Young, Deloitte, KPMG operate in auditing, compliance, legal, and taxation.

13. Green Finance: GIFT’s International Sustainability Exchange (ISX) enables trading in green bonds, carbon credits, and ESG-linked assets.

14. Smart City Infrastructure : GIFT City is designed on the Walk-to-Work concept, integrating commercial, residential, and social spaces. Land Use Mix: Out of 886 acres: 67% is commercial, 22% residential, and 11% for social infrastructure.

15. World-Class Amenities: Includes schools, hospitals, malls, GIFT City Club, and affordable housing, with advanced infrastructure like district cooling, waste tunnels, automated water systems, and IoT-based utility management.

16. Sustainability: GIFT is a platinum-rated green city, focusing on recycling, energy efficiency, and low-emission architecture.

Connectivity & Access

1. Road & Rail: Located along National Highway 48, just 20 minutes from Ahmedabad Airport, and directly connected to the Ahmedabad Metro.

2. Bullet Train Access: A planned bullet train station will place GIFT City just 15 minutes from major nodes.

Education and Skill Development

Foreign Universities: GIFT Hosts campuses of Deakin University and University of Wollongong (since Nov 2023), offering courses in finance, fintech, law, and STEM, grooming a future-ready workforce.

Legal & Regulatory Framework

1. Unified Regulation: Governed by the International Financial Services Centres Authority (IFSCA), GIFT City offers single-window clearances and a seamless regulatory experience.

2. Arbitration Centre: Provides efficient dispute resolution governed by both Indian and international laws.

Economic Impact and Future Potential

1. Job Creation: As of August 2023, GIFT City employed 20,000 professionals across finance, IT, fintech, legal, and compliance.

2. Investment Magnet: With tax neutrality, regulatory ease, and global infrastructure, GIFT City is becoming a preferred FDI destination.

Conclusion

GIFT City is India’s strategic response to global financial hubs. With a unique blend of finance, tech, smart infrastructure, and sustainability, it offers a complete ecosystem for businesses, residents, and professionals. While challenges like evolving regulations and infrastructure ramp-up remain, GIFT’s vision, execution, and growth make it a cornerstone of India’s future economy.