GIFT International Financial Services Centre: A Comprehensive Guide

Located in Gandhinagar, Gujarat, India, the GIFT International Financial Services Centre (IFSC) is a significant project aimed at establishing a world-class financial hub in the country. It's spread over 300 acres of land.

The GIFT IFSC is designed to be a self-contained financial district, with its own infrastructure, including office spaces, residential areas, and amenities. It's being developed by the Gujarat International Finance Tec-City Company Limited (GIFTCL).

The project is expected to create a large number of jobs, both directly and indirectly, in various sectors, including finance, technology, and infrastructure.

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GIFT International Financial Services Centre was established in 2007 by the Government of Gujarat. The project was first proposed by the then Chief Minister of Gujarat, Narendra Modi, with the aim of creating a world-class financial hub.

The foundation stone for GIFT project was laid on 28 January 2011, by the then Finance Minister of India, Pranab Mukherjee, and the then Chief Minister of Gujarat, Narendra Modi.

The project was launched with an initial investment of ₹78 billion, which is equivalent to ₹160 billion or US$1.9 billion in 2023. 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.

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The GIFT project was first proposed in 2007 by then Chief Minister of Gujarat, Narendra Modi, with the aim of creating a world-class financial hub that could compete with global giants like London, New York, and Hong Kong.

The project was initiated to create a world-class financial hub in Gujarat.

The foundation stone for the GIFT project was laid on January 28, 2011, by the then Finance Minister of India, Pranab Mukherjee, and the then Chief Minister of Gujarat, Narendra Modi.

The initial investment for the project was ₹78 billion, which is equivalent to ₹160 billion or US$1.9 billion in 2023.

The first phase of the GIFT project was completed in 2017, with the construction of 10 buildings, including two iconic towers – GIFT One and GIFT Two.

GIFT One is a 28-storey tower, while GIFT Two is a 29-storey tower, and both are the tallest buildings in Gujarat, with a height of 122 meters.

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Here's a brief overview of the key events in the GIFT project timeline:

Gujarat International Finance City Ltd was formed by the Government of Gujarat to develop and implement GIFT City through its venture Gujarat Urban Development Company Limited (GUDCL). This was a strategic move to create a world-class infrastructure for businesses to operate efficiently.

GIFT City is an integrated project that spans 359 hectares (886 acres) and has a built-up area of 62 million square feet. This massive development includes 67% commercial space, 22% residential space, and 11% community space.

The city's infrastructure is designed to be cutting-edge, with all electricity cables underground and a district cooling system that reduces operational costs by 30-40%. This is a significant advantage for businesses operating in GIFT City.

GIFT City has also been awarded the GREEN CITIES' PLATINUM Certification for 'Green Master planning & design and Implementation of GIFT City's phase I development' by CII's Indian Green Building Council (IGBC). This is a testament to the city's commitment to sustainability and environmental responsibility.

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Here are some key features of GIFT City's infrastructure:

GIFT City has been designed to be a hub for businesses, with world-class infrastructure and a range of fiscal incentives. The city is home to over 200 companies, including leading financial services companies and IT/ITeS institutions, and employs over 10,000 people.

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GIFT International Financial Services Centre is a game-changer for India's financial services potential. It's located in Gujarat's Special Economic Zone, GIFT City, which spans over 886 acres.

GIFT City has a unique infrastructure that sets it apart from other cities in India. The city has underground electricity cables, designed by ABB Group of Switzerland, and a district cooling system that reduces operational costs by 30-40%. It also has a gas supply system provided by GSPL's existing gas network.

The city's infrastructure is designed to be energy-efficient, with 100% LED street lighting and a 35% reduction in potable water usage. It also has an automated waste collection and segregation plant to manage solid waste effectively.

GIFT City has received several certifications and accolades for its green and sustainable features. It has been awarded the GREEN CITIES' PLATINUM Certification for 'Green Master planning & design and Implementation of GIFT City's phase I development' by CII's Indian Green Building Council (IGBC).

Here are some key features of GIFT City:

GIFT City has become a hub for various industries, including finance, IT, and corporate entities. Over 200 companies are operational in the city, employing more than 10,000 people.

GIFT City is home to India's only operational International Financial Services Centre (IFSC). The IFSC was announced by the Government of India in April 2015 to enable India to achieve its international financial services potential.

The IFSC is a crucial platform for all inbound and outbound foreign currency operations. GIFT City is a Special Economic Zone (SEZ) with a total area of 886 acres, including 261 acres designated as SEZ and 625 acres designated as Domestic Tariff Area (DTA).

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GIFT City has been designed to maximize the amount of land available for development, with a vertical city layout. The city is situated on the banks of the Sabarmati River, connecting Gujarat's business center (Ahmedabad) and political capital (Gandhinagar).

The city has excellent internal transportation connections and is connected to the rest of the world via Ahmedabad International Airport, only 20 kilometers away. This makes GIFT City an ideal destination for international businesses and financial institutions.

GIFT City's IFSC has been a game-changer for the country's financial sector, providing a world-class infrastructure for international financial services.

The consultants involved in the development of GIFT City are a diverse group of experts. They were brought in to provide specialized services to ensure the project's success.

The Amazing is the owner of the project. East China Architectural Design & Research Institute (ECADI) and Fairwood Consultants India were responsible for the design and architecture. This team worked together to create a functional and aesthetically pleasing space.

AECOM India, L&T Infrastructure Engineering, and CBRE India handled the construction of GIFT City. They worked together to bring the design to life and create a safe and functional environment.

British Telecom provided ICT advisory services, helping to ensure that the city's technology infrastructure was up to date and efficient. This expertise was crucial in creating a modern and connected city.

McKinsey & Company and Hewitt Associates conducted market demand and talent demand assessments, respectively. This information helped the developers understand the needs of the city and its potential inhabitants.

IL&FS Ecosmart Ltd and IL&FS Infrastructure Development Corporation Ltd provided environmental and process management services, respectively. These services ensured that the city was developed in an environmentally sustainable way.

ABB Group handled power management, ensuring that the city's energy needs were met efficiently. Ernst & Young, KPMG, Deloitte, and Grant Thornton also provided advisory services, including legal and regulatory compliance, tax planning, and risk management.

Here's a list of the consultants involved in the project:

GIFT City is a massive development, spanning 359 hectares, with a significant portion dedicated to the Special Economic Zone (SEZ). The SEZ constitutes 106 hectares, which is roughly 261 acres.

The city is divided into two main zones: the Domestic Tariff Area (DTA) and the Special Economic Zone (SEZ). The DTA is meant for domestic companies, while the SEZ is designed for international companies to promote exports and foreign investments.

The SEZ is further divided into two sub-zones: SEZ PA (Processing Area) and SEZ NPA (Non-Processing Area). This division allows for more efficient use of space and resources within the SEZ.

GIFT City is designed to cater to various sectors, including the financial services industry. The city is divided into several divisions, including the International Financial Services Centre (IFSC), Domestic Finance Centre (DFC), and Multi-services SEZ.

Here's a breakdown of the different divisions within GIFT City:

GIFT International Financial Services Centre offers several tax benefits to attract 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.

Companies can also enjoy various state subsidies and tax exemptions for exchanges established under the IFSC. This can lead to significant cost savings and increased competitiveness.

Here are some of the benefits offered to occupiers of GIFT City:

These benefits can help companies save on costs and improve their bottom line.

Tax benefits are a major draw for investors in GIFT City. The International Financial Services Centre (IFSC) offers exemptions from certain taxes for companies under the new tax regime.

Tax holidays are also available for specific sectors, making it an attractive option for businesses looking to save on taxes. These exemptions can be a significant cost savings for companies.

GST-free services are another perk for IFSC SEZ units, allowing them to operate with reduced costs. State subsidies and tax exemptions are also available for exchanges established under the IFSC.

As an occupier of office space at GIFT, you can enjoy a range of benefits under the government of Gujarat policy.

The government offers a capital subsidy of up to INR 1 crore for hardware, networking, and related hardware costs.

You can also get reimbursement of electricity duty and a Rs. 1 subsidy on tariff, which can help reduce your operational expenses.

Lease rental subsidy is another benefit, with rates ranging from INR 3 to 8 per sq. ft. per month, depending on the specific location and terms.

Additionally, construction subsidy of Rs. 300 per sq. ft. of BUA (Built-up Area) is available for vertical IT/ ITes parks.

Here's a summary of the benefits:

GIFT International Financial Services Centre has a unique liquor policy within GIFT City.

The Government of Gujarat authorized the controlled consumption of liquor within GIFT City in December 2023.

Liquor can be served in restaurants, hotels, and clubs within GIFT City.

However, it's only allowed for permanent employees and their authorized visitors, as sanctioned by the respective companies' human resources departments.

The sale of liquor bottles remains prohibited.