THE RISE OF GIFT CITY

A decade ago, India’s GIFT City faced skepticism. The ambitious ₹78,000 crore project, championed by the then Chief Minister and now Prime Minister, Narendra Modi, seemed destined for failure. Incomplete buildings, absent utilities, and a lack of corporate tenants painted a bleak picture.

Fast forward to 2024, and the scene has drastically shifted. GIFT City is abuzz with construction. Swanky apartments, schools, and hospitals are rapidly taking shape. Its high-rise towers now host 400 offices and employ 26,000 individuals. Startups and established companies alike are eyeing it for relocation and investment.

So, what changed the tide?

In 2007, Modi unveiled his vision for an international financial center along the Sabarmati River in Gandhinagar, drawing inspiration from Shanghai. He enlisted experts behind Shanghai’s modernization to devise a blueprint.

However, execution hurdles hampered progress. Even basic construction faced delays due to bureaucratic obstacles. Meanwhile, Mumbai held its status as India’s financial hub, with plans to develop the Bandra Kurla Complex into a global rival.

Yet, in 2014, the tables turned. With Modi ascending to Prime Minister, his clout surged. GIFT City secured SEZ status, offering liberal economic laws and enticing incentives like a 10-year tax holiday.

Even setbacks, like the collapse of its joint-venture partner, IL&FS, didn’t derail the project. The government assumed IL&FS’s stake, propelling the venture forward.

A pivotal moment arrived in 2020 with the creation of the International Financial Services Centres Authority (IFSCA), streamlining regulations and attracting businesses.

The aftermath of the Silicon Valley Bank Crisis in 2021 further bolstered GIFT City’s stature, as startups funneled funds into its banks.

Recent initiatives, such as launching a dedicated bullion exchange and a streamlined listing platform for startups, underscore GIFT City’s rising prominence.

In essence, GIFT City’s trajectory reflects a remarkable turnaround, poised to rival global financial heavyweights.