A decade ago, India’s GIFT City faced skepticism and challenges in its ambitious ₹78,000 crore project, labeled as the brainchild of the Prime Minister. Incomplete buildings, absent power utilities, and a lack of corporate tenants hinted at potential failure. However, fast forward to 2024, and GIFT City is undergoing a remarkable transformation.
Construction activity is bustling, with the addition of swanky residential apartments, a school, and a hospital. High-rise towers now host around 400 offices, employing 26,000 people. Both startups and established companies are eyeing GIFT City for relocation, business ventures, and investments.
The journey’s turning point can be traced back to 2014 when political shifts favored the project. GIFT City gained the status of a Special Economic Zone (SEZ), providing liberal economic laws for businesses. The government introduced incentives, including a 10-year tax holiday for companies, no GST on services within GIFT City, and other favorable conditions.
Even setbacks, such as the joint-venture partner IL&FS facing financial challenges in 2018, couldn’t halt the project. The government stepped in, taking over IL&FS’s stake and ensuring continuity.
A pivotal moment occurred in 2020 with the establishment of the International Financial Services Centres Authority (IFSCA), streamlining regulations and simplifying business operations. This move aimed to attract more companies to the zone.
2021 witnessed GIFT City becoming a safe haven during the Silicon Valley Bank Crisis, where over $200 million of startup funds found a secure home.
Further developments included the launch of one of the world’s three dedicated bullion exchanges, centralizing the gold import market. To encourage startups, the government introduced an exchange allowing swift listing of shares for fundraising from foreign investors, eliminating cumbersome processes.
In essence, GIFT City has evolved into a thriving financial hub, offering a competitive edge.
