In this article, we will be discussing what is Gift City, how well it is progressing, and how can it affect investors. So, let’s get started!
What is Gift City?
- Gujarat International Finance Tec-City (Gift City) is a city that has been developed by the Gujarat government for the financial services industry. It is located in Gandhinagar and was established in 2008.
- The city has been set up with a vision to make it one of the most advanced cities in India. It will be a hub for finance, information technology, education, and healthcare.
- The concept of Gift City was laid down in the year 2007 by then Chief Minister Narendra Modi. The foundation stone was laid in the year 2010.
- The development of this city will be carried out through the public-private partnerships (PPP) model.
- Gift City is envisioned as an International finance and IT hub which will be developed on a PPP model which means that it is planned to provide necessary infrastructure facilities such as roads, electricity, and water supply. Sewage treatment plants, etc., while private sector companies are expected to invest in commercial establishments such as hotels, hospitals, schools, etc.
- This project is in line with the aim of India to become a central business district like London, Paris, Hong Kong, etc. This hub will provide all the financial transactions under one hub.
- This project is divided into 3 phases:
- 1st Phase: Ground Work- 2012-2016
- 2nd Phase: City Set Up and Operations- 2016-2020
- 3rd Phase: Completion and Full Fledge Operations- 2020-2024
- The Gift City is divided into 2 types: Domestic Segment and International Segment.
- Domestic Segment: Here, the Indian companies will be registered
- International Segment: Here, along with Indian companies, international companies will be registered.
- The city will be divided into 3 categories: residential, commercial, and social buildings.
- Gujarat Gift City will also be termed a Smart City because it will comprise some astonishing features like a Water Recycling Plant, ICT Infrastructure, Automated Waste Collection System, an uninterrupted power supply, a district cooling system, and many other features.
- In 2022, Mr. Narendra Modi started Indian International Bullion Exchange. This exchange caters to gold. With the help of this exchange, India will be able to control the demand and supply to some extent. Currently, India is the Gold Price Taker and not Price Setter.
- In Union Budget 2022-23, it was announced that International Arbitrage Centre will also be established.
- A subsidiary of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)- NSE, IFSC, and INX has already been set up which will facilitate trading in the international segment
- Singapore Stock Exchange has also been set up in collaboration with the NSE IFSC.
- It is a Special Economic Zone due to which these exchanges will get some benefits like subsidies, etc.
- The third face of the project got delayed to the 2008 Financial Crisis, GST, demonetization, and the Covid-19 pandemic.
- The businesses set up in the Gift City have not been initiated at the full-fledged level.
- Socialization is not at its full extent.
What Should Investors Do:
Gift City is targeting to become Center Business District which is a very big thing. Looking at the India growth prospect, it will be interesting to see how the this Gift City of India will be able to give tough competition to foreign stock exchanges.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.