Daijiworld Media Network – Gandhinagar

Gandhinagar, Dec 1: When the 2001 Bhuj earthquake devastated Gujarat and communal riots further crippled investor confidence the following year, the state’s future seemed uncertain. But under then Chief Minister Narendra Modi, Gujarat began an ambitious rebuilding journey that would eventually reshape India’s global financial presence.

Modi launched the first Vibrant Gujarat Summit in 2003, personally calling dozens of industrialists every day to restore faith in the state. Four years later, he conceived what would become India’s most transformative financial project — GIFT City.

Planned as an international financial and technology hub on the lines of Singapore, Dubai and London, GIFT City was envisioned not just as an IFSC but as India’s first integrated greenfield smart city, built with world-class urban design, sustainability, and next-generation infrastructure.

Established through a joint venture between the Gujarat Urban Development Company and IL&FS, GIFT City rose from 900 acres of wasteland along the Sabarmati. Today, just 20 minutes from Ahmedabad airport and close to the bullet train terminus, it stands as India’s most ambitious global finance centre.

Eighteen years on, Modi’s gamble has paid off. GIFT City — India’s first operational smart city — is reshaping the nation’s financial aspirations. Global banks are setting up operations to tap India’s booming demand for dollar-denominated loans, diverting business away from established hubs such as Hong Kong and Singapore. In FY 2024-25, GIFT banks disbursed nearly $20 billion in dollar loans to Indian corporates.

With 1,034 registered entities and 38 banks holding assets worth $100.14 billion, the city has climbed to its highest-ever 46th rank on the Global Financial Centres Index. It has become the gateway for global capital entering a rapidly growing $5 trillion economy.

According to Dipesh Shah, Executive Director (Development), IFSCA, operating costs in GIFT City are just one-fifth of major global financial centres. “Banks operating from GIFT have raised $58 billion. We have already overtaken Abu Dhabi, and the next targets are Dubai, Singapore and Hong Kong,” he said.

Prime Minister Modi inaugurated India’s first India International Bullion Exchange (IIBX) in 2022. In May 2025, GIFT NIFTY recorded a turnover of $102.35 billion, signaling rising global investor confidence.

Sanjay Kaul, MD & Group CEO of GIFT City, said the hub is fast becoming India’s foremost financial and technology centre. Equipped with district cooling, automated waste collection, integrated utility tunnels and Metro access, it is emerging as a comprehensive ecosystem for global capability centres, fintechs, insurers and capital market players.

Major global banks including Standard Chartered, HSBC, J.P. Morgan, Citi, Deutsche Bank, BNP Paribas and Barclays have set up branches here. GIFT accounts for $19 billion of India’s $61 billion ECBs raised last year — a 36% share that is expected to rise further.

The insurance ecosystem is also expanding, with 52 entities including GIC Re, LIC, HDFC Life and ICICI Lombard. Reinsurance premiums have touched $425 million.

GIFT City’s aggressive tax regime — with zero GST on IFSC transactions, 10-year income tax exemptions, and full waivers on stamp and electricity duty — offers incentives unmatched even in global hubs like London or Singapore. The transparent regulatory framework and lower borrowing costs are encouraging Indian companies to shift from offshore markets to GIFT.

IFSCA Chairperson K Rajaraman said IFSC banking units have facilitated $54 billion in foreign currency loans and $15.43 billion in trade finance, reducing dependence on foreign jurisdictions.

Beyond finance, GIFT City is emerging as a key technology centre. Wipro, Infosys, Cognizant and Hexaware employ over 2,500 people. Infineon, Technip Energies, Accenture and Capgemini have also expanded operations, with the latter set to touch 1,000 employees.

A smart city built from scratch, GIFT features a 16-km underground utility tunnel, 99.999% power reliability, potable tap water, zero discharge, and district cooling that cuts energy use by 30%. A Command and Control Centre monitors 70,000 data points, ensuring seamless city-wide management.

With premier institutes like IIM Ahmedabad and IIT Gandhinagar nearby, GIFT benefits from a talent pipeline of 38,000 graduates annually. Currently employing 28,000 people, the workforce is expected to reach 1 lakh by 2030. International education is also growing, with Australian universities Deakin and Wollongong opening campuses in 2024 and UK institutions Coventry and Queen’s University set to join in 2026.

Real estate demand is surging, driven by rising corporate presence, global investors and NRIs. Aircraft and ship-leasing companies are shifting operations to GIFT, boosting commercial growth. According to Sobha Ltd.’s Sumeet Chunkhare, the upcoming Ahmedabad Commonwealth Games 2030 is set to further enhance long-term value.

With expanding capabilities, sustainability, and an innovation-driven ecosystem, GIFT City is steadily anchoring India’s vision of Viksit Bharat 2047 — a truly global financial future taking shape on the banks of the Sabarmati.