Gujarat's GIFT City Among Global Financial Centres With A Promising Future
Still in its early stages of development, Gujarat International Finance Tech-City (GIFT) City is an ambitious mixed-use project in the country. It was recently ranked third in the Global Financial Centres Index 24 (GFCI) . It is the first time that the project has been featured in the report that highlights 15 centres across the world that are likely to gain significance in the next few years. GIFT City is also now a part of the main index of the GFCI, and is ranked 77 in a list of 100 global financial centres.
Being developed as India's first International Financial Service Centre (IFSC) , GIFT City is located between Ahmedabad and Gandhinagar. It is intended to provide high-quality infrastructure through the optimum use of resources.
The GIFT City has been visualised as a global IT and a financial services hub equivalent to the quintessential financial centres of La Defense, Shanghai and London Dockyards. Working on the idea of sustainable development, the project is likely to create one million job opportunities.
With high-quality infrastructure and improved connectivity options, GIFT City is expected to revamp the real estate scenario of Ahmedabad and Gandhinagar.
A hotspot for Alternative Investment Funds
In a move that would accelerate the business in the GIFT City, Alternative Investment Funds (AIFs) could now invest in the IFSC through the Foreign Portfolio Investment (FPI) , the Foreign Venture Capital Investor (FVCI) and the Foreign Direct Investment (FDI) route. The Securities and Exchange Board of India (SEBI) on November 27 released the guidelines for AIFs, making the GIFT City a potential destination of investment to launch offshore funds in India. This move will also help generate more jobs in the City.
Large-scale infrastructure development
GIFT City is an initiative to provide high-quality infrastructure consisting of 24x7 water supplies, automated waste collection, underground cable for power distribution, space optimisation and district cooling system.
Large masses demand homes and offices in areas that are capable of meeting their infrastructural needs. Growth in the field of real estate is a function of infrastructural developments in the area and GIFT City has been envisioned to meet global standards in the field of infrastructure.
Seamless connectivity
GIFT City has been envisaged to provide an integrated transportation system, too. It is a transit-oriented development (TOD) where people can walk to work. An urban linkage system consisting of surface roads, bridges, public transport systems and intelligent transport system has also been planned.
Moreover, the project is connected to some of the major cities such as Delhi and Ahmedabad so that its scope of development is even more widened. Bus Rapid Transit System (BRTS) and Metro rail connectivity have also been planned to link GIFT City to Ahmedabad. It is evident that advancements in transport will also lead to the growth of real estate in the neighbouring localities of GIFT City.
Commercial hub
The main focus of GIFT City is on the development of commercial activities. With major areas dedicated for financial services, shopping malls, IT sector and other office spaces, the project is expected to create a lot of job opportunities. The place is likely to be thronged by immigrants from nearby areas which will, in turn, create a sizeable demand for residential projects. Though essential housing facilities like apartments and studios are available within the premises, these facilities are limited. This will also see a rise in the demand for residential projects in the neighbouring areas of GIFT City.
Social facilities
With a vision to develop a 'smart city', GIFT City will be provided with all social facilities including hospitals, educational institutions, communication hubs and recreation centres. With the increase in social and commercial institutions, residential projects will also see a rise in the neighbourhood. Apart from these facilities, the GIFT City will also have a Special Economic Zone (SEZ) . These are expected to bring in Foreign Direct Investment (FDI) and create better employment opportunities.
When fully functional, the project would also have an Information and Communication Technology (ICT) system spread across the city. The development of GIFT City is a significant initiative towards taking the real estate market of Gujarat to a higher level of advancement.
"Government land near big projects such as Metro rail, bullet train or GIFT City project would be sold at higher rates from now on," an official was quoted as saying in a DNA report. The valuation would be calculated on the basis of transactions in the last year, size of the land to be sold, connectivity, floor space index and town planning.
"The recognition of GIFT IFSC in list of most significant emerging financial centres and entry into main index of global financial centres by GFCI is the testimony of the contribution GIFT IFSC is making in the international financial services business," said GIFT City MD &Group CEO Ajay Pandey.