GIFT city is known as The Gujarat International Finance Tec-City in the Gandhinagar district of Gandhinagar. Gujarat International Finance Tec City, commonly known as GIFT City, is set to undergo a significant expansion, incorporating four villages in Gujarat’s Gandhinagar district, adding approximately 2,300 acres to its existing footprint.
This marks GIFT City’s first substantial expansion since its inception in 2007, resulting in a more than threefold increase in project size, expanding from 1,065 acres to around 3,365 acres. Despite this expansive growth, the official GIFT City website indicates that the initial phase of the project, spanning 359 hectares (886 acres), is anticipated to be finalized by 2025. The subsequent phase, covering 20 million square feet of development, is slated for completion by 2030.
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Gujarat International Finance Tec-City (GIFT City) Embarks on Significant Expansion
Overview:
GIFT City, also known as the Gujarat International Finance Tec-City, is set to undergo a substantial expansion, encompassing four villages in Gujarat’s Gandhinagar district. This marks the first major expansion for GIFT City since its inception in 2007, elevating the project’s area from 1,065 acres to a remarkable 3,365 acres.
| Aspect | Details |
|---|---|
| Project Name | Gujarat International Finance Tec-City (GIFT City) |
| Expansion | Approximately 2,300 acres |
| Incorporation | Four villages in Gujarat’s Gandhinagar district |
| Initial Conceptualization | 2007 |
| Existing Size | 1,065 acres |
| Expanded Size | Approximately 3,365 acres |
| First Phase Completion | 2025 |
| First Phase Land Area | 359 hectares (886 acres) |
| Second Phase Completion | 2030 |
| Second Phase Development | 20 million square feet |
Expansion Details:
In response to heightened demand and a strategic approach to prevent haphazard development, the expansion aligns with GIFT City’s existing structure. Tapan Ray, MD & CEO of GIFT City, emphasizes the need for organized growth to avoid slums and ensure equitable development. The expanded area will mirror the principles of the existing GIFT City.
Estimated Cost:
The estimated cost of this expansion involves a substantial investment, with GIFT City planning the development of 20 million square feet. The projected expenditure for infrastructure development in this second phase is expected to exceed Rs 4,000 crore.
GIFT City’s Financial Landscape and International Standing
Foreign Direct Investment (FDI) Trends:
GIFT City, housing India’s sole International Financial Services Centre (IFSC), operates as an offshore jurisdiction. Notably, in the fiscal year 2022-23, foreign investments from Singapore, Mauritius, and the UAE totaled $17 billion, $6 billion each, contributing to a cumulative $102 million FDI. However, experts note that GIFT City faces challenges in competing with established fund jurisdictions like Singapore and Mauritius.
Tax Amendments and Incentives:
Efforts to attract funds to GIFT City have involved tax amendments, including the imposition of an Angel Tax on foreign investors. While the government exempted investors from 21 countries, traditional contributors like Singapore, Mauritius, the Netherlands, and the UAE remain absent from the list. Experts speculate that this move might encourage the relocation of offshore funds to GIFT City, benefiting funds regulated under IFSCA.
GIFT City’s Architectural Milestone – “Curv”
Twisted Building Project:
GIFT City is set to witness its first distinctive architectural landmark, “Curv,” a 32-floor building approved for construction at a cost of Rs 700 crore. Developed by Shivalik Developers, “Curv” will be located in the Domestic Tariff Area (DTA) and offer a million square feet of commercial spaces, blending retail at the ground level with office spaces across the remaining floors.
Design and Development:
Designed by INI Design Studio, renowned for projects like the Gateway Towers in Dubai and the World Trade Centre at GIFT City, “Curv” is anticipated to redefine GIFT City’s skyline. The construction plan has received approval from GIFT City and RERA, with construction set to commence within the next two months.
GIFT City – An Integrated Financial Hub
Strategic Location and Development Overview:
GIFT City, situated on 886 acres of land, strategically connects Ahmedabad and Gandhinagar along the Sabarmati River. This integrated development encompasses a multi-services Special Economic Zone (SEZ) with the status of India’s first IFSC, approved by the Government of India. The city aims to optimize land consumption with 67% dedicated to commercial, 22% to residential, and 11% to social facilities.
Current Status:
As of now, GIFT City boasts 16 constructed buildings, including high-rises, with an additional 27 buildings, totaling 9-10 million square feet, currently under construction. The operational commercial space stands at 2,000,000 sq ft, and an additional 3,000,000 sq ft is in the development phase.
Conclusion:
GIFT City’s expansion and architectural milestones underscore its commitment to becoming a thriving international financial hub, with ongoing efforts to attract foreign investments and position itself as a competitive fund jurisdiction.