Gujarat’s Smart Financial Hub Attracts Global Capital and Firms

In 2001, the Bhuj earthquake shattered Gujarat, leaving deep physical and emotional wounds. It crippled the state’s economy. Seven months later, communal riots further damaged the state’s image, hurting investor confidence. The then chief minister, Narendra Modi, swung into action and launched the first Vibrant Gujarat Summit in 2003—not just to attract investments, but to restore Gujarat’s dignity and credibility. Modi personally made 40–50 calls daily to industrialists to rebuild trust.

To reposition Gujarat as an investment-friendly state, Modi conceived Gujarat International Finance Tec-City (GIFT City) in 2007. His vision:
to create India’s equivalent of Singapore, Dubai, Hong Kong, and London—an international financial & technology hub with next-generation urban infrastructure.

GIFT City was envisioned as India’s first integrated greenfield smart city, blending world-class design, sustainability, technology, and quality of life.

A joint venture, GIFTCL, was created between GUDCL & IL&FS to execute the project.

Spread across 900 acres of wasteland on the Sabarmati riverbank, GIFT City is just 20 minutes from Ahmedabad airport and 15 minutes from the bullet train terminus.Global Capital Flows Into GIFT City

Eighteen years later, the vision has paid off. GIFT City is now India’s first operational smart city, reshaping India’s global financial aspirations.

Global banks are flocking to the hub to take advantage of India’s demand for US-dollar-denominated debt, shifting business away from Hong Kong and Singapore. Banks in GIFT City disbursed nearly $20 billion in dollar loans to Indian companies in FY25.

Today, GIFT City hosts:

• 1,034 registered entities

• 38 banks

• $100.14 billion in assets

Ranked 46th globally on the Global Financial Centres Index—its highest ever—it has become a leading gateway for global capital access to India’s $5 trillion growth story.

Dipesh Shah, Executive Director (Development), IFSCA, noted that operating costs in GIFT City are just one-fifth of global IFSCs, making it far more competitive.

Banks operating from GIFT City have already raised $58 billion, surpassing Abu Dhabi—with Dubai, Singapore, and Hong Kong being the next targets.

Prime Minister Modi launched the India International Bullion Exchange (IIBX) in 2022.

Meanwhile, GIFT NIFTY recorded $102.35 billion in monthly turnover in May 2025—a strong signal of global investor confidence.

Global Banks Opening Branches

Standard Chartered, HSBC, J.P. Morgan, Citi, Deutsche Bank, BNP Paribas, and Barclays operate from GIFT City.
Banking assets stand at $100.14 billion, with cumulative transactions reaching $142.98 billion.

36% of India’s total ECBs now originate from GIFT City—a massive shift from traditional offshore hubs.

The insurance ecosystem includes 52 entities, including GIC Re, LIC, HDFC Life, and ICICI Lombard. Gross premiums crossed $425 million.

The regulatory and tax structure is uniquely aggressive:

• 10-year income tax exemptions

• Zero GST on IFSC transactions

• Zero STT

• 100% subsidy on stamp duty & electricity duty

These incentives are unmatched globally.

According to IFSCA Chairperson K. Rajaraman, GIFT IFSC has enabled $54 billion in foreign currency loans and $15.43 billion in trade finance, supporting Indian corporates and reducing overseas intermediation costs.

The FinTech Edge

Tech giants like Wipro, Infosys, Cognizant, and Hexaware operate with 2,500 employees.
Twenty FinTech entities and sandbox innovators are building the future of finance.

Beyond finance, semiconductor and energy companies like Infineon and Technip Energies have also expanded here. Accenture and Capgemini are scaling rapidly—the latter moving toward 1,000 employees.

Smart City, Smart Infrastructure

GIFT City’s hidden advantage is its underground infrastructure.
A 16-km utility tunnel carries power, water, sewage, and waste systems—eliminating road digging entirely.

Key features:

• 99.999% power uptime

• Potable tap water

• Zero discharge

• District cooling saving 30% energy

A central Command & Control Center monitors 70,000 real-time data points.

Talent & Education Ecosystem

Nearby institutes like IIM Ahmedabad, IIT Gandhinagar, and Gujarat Maritime University feed GIFT City with 38,000 graduates annually.

Currently, 28,000 people work in GIFT City, which is expected to reach 1 lakh by 2030.

GIFT City also hosts India’s first international higher education zone:

• Deakin University (Australia)

• University of Wollongong (Australia)

• Coventry University (UK) – 2026

• Queen’s University (UK) – 2026

Ahmedabad’s AI-skilled talent has increased 142% in one year.

Real Estate Demand Surges

GIFT City’s integrated SEZ ecosystem supports sectors like banking, FinTech, IT, and capital markets.
It is also emerging as an aircraft and ship-leasing hub.

Residential and commercial real estate demand is rising steadily, making GIFT City a preferred location for global firms, investors, and NRIs.

Sobha Ltd., which is building its third project here, notes that GIFT City offers long-term value creation, supported by smart regulations and major events like Ahmedabad’s Commonwealth Games 2030.

Explore More Insights

For deeper analysis on India’s financial evolution and global capital flows, explore leadership insights from
Ranjit Jha (CEO)—known for bridging global financial access, research, and long-term wealth strategy.

To understand how Rurash Financials
supports investors in navigating global markets, IFSC opportunities, and structured wealth solutions, visit the official website.