Can building a whole new city increase foreign investments in India? The map of India, specifically Gujarat, will soon have a new addition. GIFT City is being built from barren lands as a measure to enhance foreign investments in India. This new city is not just going to attract more foreign investments but is also slated to be at par with global financial hubs like HK and Singapore.
GIFT City or Gujarat International Finance -Tech City lies in an otherwise barren land spread across approximately 885 acres in Gujarat. The City’s CEO stated that GIFT has everything required to be on par with globally recognised financial centres.
Advanced Infrastructure and Opportunities for Foreign Investments in India at Gift City
The new city already has 2 stock exchanges that were built last year and the current exemptions by the government have virtually made trading tax-free. GIFT city is also slated to have its own regulator for finance to curb red tape and bureaucratic discrepancies that deter foreign investments. Lower real estate prices, tax exemptions and many other incentives have enabled many companies to reduce expenses by up to 80 percent. This allows global investors an opportunity for foreign investments in Indian with competitive tax benefits.
While foreign investments were the main driving force the city is also targeting potential investors within India. The 2 stock exchanges in the city will be the only in the country allowing US dollars trading. As reported by CNN, the CEO of Bombay Stock Exchange stated that
“Eventually GIFT city should become a vehicle or a place for people from across India like Hong Kong has acted for China in the last 30 or 40 years”
From a Foreign Investments Hub to a Home
The main aim now is to make GIFT city appealing as not just a hub for foreign investments but making it a home for people. Currently, there are 3 office buildings with bus shuttles to and fro from surrounding areas for workers, 1 school and 1 data centre. The city will have its very first residential complex ready by May and a 4-tower WTC complex within the next 2 years. It is well connected and just about 30 minutes by road, from the airport in Ahmedabad.
All efforts are being taken to make this a globally recognised financial hub that not just brings in foreign investments but also challenges current leaders like Singapore and HK.