GIFT City, or Gujarat International Finance Tec-City, is a central business district under construction in Gandhinagar district, 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.
But what makes GIFT City so attractive for investors and businesses? What are the benefits of investing in Gift City? In this blog post, we will explore some of the key benefits of investing in GIFT City and why you should consider it as a destination for your next venture. The Director of Lares, Mr Maya Sharan Singh has extensive experience and expertise in finance and technology.
A Global Hub for Finance and Technology
GIFT City is designed to cater to customers outside the Indian jurisdiction, offering a range of services such as banking, capital markets, insurance, fintech, and more, supported by Govt. of India and Gujarat, with cutting-edge infrastructure and sustainability.
GIFT City is home to India’s first international financial services center (IFSC), which provides a conducive regulatory and tax environment for financial institutions and entities.
The IFSC offers benefits such as:
- Competitive tax regime: No capital gains tax, securities transaction tax, dividend distribution tax, commodity transaction tax, stamp duty, and GST for transactions in IFSC. A corporate tax rate of 9% for IFSC units.
- Ease of doing business: Single-window clearance and approvals, simplified compliance requirements, and dispute resolution mechanism.
- Access to global markets: Ability to deal in multiple currencies, products, and segments.
- Innovation and diversification: Scope for new products and services such as aircraft leasing, bullion exchange, global in-house centers, and foreign universities.
GIFT City is also a technology hub, with a focus on fintech, IT, and ITES sectors. It offers state-of-the-art infrastructure and facilities such as:
- Utility tunnel: A 12 km long underground tunnel that houses all the utilities such as power, water, gas, telecom, and drainage, ensuring uninterrupted service delivery and easy maintenance.
- City command and control center: A centralized system that monitors and manages the city’s operations, security, and emergency response.
- District cooling system: India’s first district cooling system that provides chilled water for air conditioning, reducing energy consumption and carbon footprint.
- Smart water infrastructure: A smart water management system that ensures 24/7 water supply, quality monitoring, leakage detection, and reuse of treated wastewater.
- Power infrastructure: A reliable and efficient power distribution network that ensures 99.999% power availability, smart metering, and renewable energy integration.
Benefits of Investing in GIFT City By Opening an Office
GIFT City is a world-class business district that offers a conducive environment for global and domestic business enterprises. It has a multi-service special economic zone (SEZ) and an exclusive domestic tariff area (DTA), which provide different benefits and incentives for different types of businesses.
The SEZ area is meant for businesses that cater to customers outside India, such as IFSC units, global in-house centers, foreign universities, and ancillary services. The SEZ area offers benefits such as:
- Duty-free import and export of goods and services.
- Exemption from customs and excise duties, service tax, and central sales tax.
- 100% foreign direct investment (FDI) is allowed in most sectors.
- 100% income tax exemption for the first 10 years and 50% for the next 5 years.
The DTA area is meant for businesses that cater to customers within India, such as banking, maritime, finance, insurance, IT, engineering, fintech, automobile, capital market, pharmaceutical, and biotech sectors. The DTA area offers benefits such as:
- Competitive land and lease rates.
- Availability of skilled manpower and talent pool.
- Proximity to Ahmedabad and Gandhinagar, the commercial and political capitals of Gujarat.
- Connectivity to national and international markets through road, rail, air, and sea.
GIFT City is also a walk-to-work city, providing social facilities such as schools, clubs, parks, etc., enhancing the quality of life for its residents. The city has a high level of security and surveillance, ensuring safety and peace of mind for the inhabitants.
A Promising Future for Growth and Development
GIFT City is a visionary project that aims to create a new epicenter for global finance and technology. It is not only a flagship for smart cities in India but also sets an international benchmark for finance and technology hubs worldwide.
GIFT City has a huge potential for growth and development, as it is strategically located in Gujarat, one of the most progressive and business-friendly states in India. Gujarat has a strong industrial base, a vibrant entrepreneurial culture, a stable political environment, and a proactive government that supports innovation and investment.
GIFT City is also aligned with the national and global initiatives and trends, such as:
- Make in India: A flagship program of the Government of India that aims to boost the manufacturing sector and create employment opportunities. GIFT City can act as a catalyst for attracting foreign and domestic investment and enhancing the competitiveness of Indian products and services.
- Digital India: A flagship program of the Government of India that aims to transform India into a digitally empowered society and economy. GIFT City can act as a hub for digital innovation and adoption, leveraging the latest technologies and solutions.
- Sustainable Development Goals: A set of 17 global goals adopted by the United Nations that aim to end poverty, protect the planet, and ensure peace and prosperity for all. GIFT City can act as a model for sustainable development, incorporating the principles of environmental, social, and economic sustainability.
The benefits of investing in GIFT City are enormous for investors and businesses. It is a unique and ambitious project. It is a global hub for finance and technology, a world-class business district, and a promising future for growth and development. It is a destination that you should not miss if you are looking for a competitive edge and a rewarding opportunity.