How gift city play major role in Asian economy and finance

Gift City will surpass the economies of Singapore and Dubai

1. Enhancement of the Financial Sector: GIFT City has been thoughtfully designed to become a central hub for India's financial sector. It features carefully developed infrastructure and state-of-the-art facilities tailored for banks, insurance companies, and various financial institutions. By fostering an environment that supports growth and innovation, GIFT City is set to expand India's financial industry and strengthen the nation's status as an economic powerhouse, leading to increased economic vitality.

2. Attraction of Foreign Investment: With its business-friendly policies, Special Economic Zone (SEZ) status, and advanced infrastructure, GIFT City is positioned as an attractive destination for foreign investment. The city's ecosystem is designed to draw investments from around the world, promising job creation and economic growth within India. This influx of foreign investment can significantly drive the transformation of the nation's economic landscape.

3. Encouraging Innovation and Startups: GIFT City emphasizes innovation and entrepreneurship, which can significantly boost the growth of startups and emerging businesses. The supportive environment within the city fosters the development of new ideas, fueling innovation. As these startups thrive, they contribute to economic diversity and create employment opportunities across various sectors.

4. Reducing Dependence on External Financial Centers: GIFT City has the potential to reduce India's reliance on foreign financial centers like Singapore and Hong Kong. It offers a compelling domestic alternative with world-class facilities for businesses looking to expand in Asia. This shift can retain significant economic activity within India, enhancing self-reliance and decreasing dependency on external financial infrastructures.

5. Strengthening India's Global Economic Position: By developing GIFT City as a financial hub, India is set to enhance its standing on the global economic stage. A strong financial center of this scale boosts India's influence in international financial markets. As GIFT City gains recognition, it showcases India's economic strength globally, reflecting its commitment to progressive economic practices and its growing presence in international economic discussions.

GIFT City will become the future of the Indian economy

GIFT City was conceived in 2008, when fintech was relatively unknown, and Narendra Modi was the Chief Minister of Gujarat. The visionary plan aimed to transform this strategically located area into a global financial trade and commerce hub, easing bureaucratic and compliance challenges that hindered progress.

The goal was to create an appealing alternative to financial hubs like Dubai or Singapore, focusing on sectors such as capital markets, offshore banking, asset management, insurance, IT services, ITeS/BPO services, and areas like legal, accounting, research, and analytics.

The center was equipped with advanced infrastructure, essential urban amenities, and strong external connectivity. It played a crucial role in overseeing international transactions, managed by the International Financial Services Centre Authority (IFSCA). The IFSCA's responsibilities included capital markets, offshore banking, asset management, offshore insurance, and related fields. Notably, the center offered leasing services for ships and aircraft, and the presence of two international stock exchanges in GIFT City resulted in an average daily trading volume exceeding $11 billion.

Despite initial skepticism, the vision for GIFT City endured. A turning point came about five years ago, as Union Budgets from 2015 introduced incentives for GIFT City's growth. The International Financial Services Centre, aimed at overseas clients in cross-border finance, began operations in 2015. Building on this, the IFSC Authority was established in 2020, consolidating regulatory oversight for all international financial services and boosting confidence in the financial community.

Located along the Sabarmati River, GIFT City is evolving beyond a financial center. Plans include residential complexes and cultural hubs, with the riverfront set to transform with cafes and restaurants. Discussions with foreign universities are ongoing to establish local campuses, potentially reshaping GIFT City's cultural landscape.

In summary, GIFT City's significance is multifaceted, with the potential to elevate the financial sector, attract foreign investments, foster innovation, provide a domestic alternative to external financial centers, and enhance India's global economic influence. It is not just a project; it is a transformative initiative capable of shaping India's economic path for years to come.