Look: Dubai-model GIFT City in Indian PM Modi’s Gujarat

Dubai: Gujarat International Finance Tec-City (GIFT City) – India’s rapidly emerging global finance hub – draws inspiration from Dubai’s International Financial Services Centre (IFSC), a top official said.

“It’s a similar model, except for one difference: we haven’t yet created our own adjudication system in GIFT City, whereas Dubai has its own. That’s the only distinction. Otherwise, I think more or less the same incentives and benefits are being offered,” said Dr Hasmukh Adhia, Principal Adviser to the Chief Minister of Gujarat and Non-Executive Chairman of GIFT City, in an interview with Gulf News.

GIFT City, a Special Economic Zone located in the home state of Indian Prime Minister Narendra Modi, is the country’s first operational smart city, and aims to become a top-tier finance and IT hub offering services to the world.

“GIFT City is developing with the vision of the Indian Prime Minister. He wants all offshore economic activities in banking, investment, and fund management to be brought onshore,” Dr Adhia said on the sidelines of LIBF GCC Calling 2025 – an international business forum held in Dubai with participation from about 600 businesspeople from more than 35 countries.

Tax incentives

Dr Adhia noted that GIFT City – India’s first IFSC – offers world-class infrastructure, a business-friendly ecosystem, tax incentives, single-window clearance, global connectivity, and a strong talent pool – factors akin to financial hubs like Dubai and Singapore.

“GIFT City started operations in 2015. It’s an IFSC, a Special Economic Zone, an exclusive area where various financial and technological services are permitted, with no income tax for 10 years, no Goods and Services Tax, no stamp duty, or other taxes,” said Dr Adhia, who is credited with the successful implementation of the GST in India during his tenure as Finance and Revenue Secretary.

600 entities

GIFT City, spread over 1,000 acres of area between Ahmedabad and Gandhinagar, also features India’s first automated waste management network, own GIFT Nifty index, bullion exchange, country’s first utility tunnel, business district, smart water infrastructure, district cooling, integrated development of commercial and residential units, and other amenities – including an exemption from the state’s prohibition law.

“At present, we have about 600 entities operating there. A number of fund managers have shifted from Singapore and Dubai to GIFT City. There are Indian and international banks – about 31 of them currently operating,” he noted.

Speaking about the exemption to the liquor ban, Dr Adhia underlined that it’s a special concession.
“Gujarat is a prohibition state, so liquor consumption is not allowed. However, there was significant demand from IT professionals and those working in the financial sector in GIFT City. So, the state government made an exception,” Dr Adhia added.