Gandhinagar: 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 of the state, Narendra Modi swung into action and launched the first Vibrant Gujarat Summit in 2003, not just to attract investment, but to restore Gujarat’s dignity and credibility. Modi personally made 40-50 phone calls daily to industrialists, to rebuild trust.
Further, to reposition Gujarat as an attractive investment destination, Modi conceived Gujarat International Finance Tec-City (GIFT City) in 2007.
His vision was clear: to create in India what Singapore, Dubai, Hong Kong, and London represent to the world, an international financial and technology hub with next-generation urban infrastructure.
It was not just an international financial services centre (IFSC), but India’s first integrated greenfield smart city, where world-class urban design, technology, sustainability, and quality of life converge.
To execute this, his administration established a joint venture company, Gujarat International Finance Tec-City Company Limited (GIFTCL), as a partnership between the state-owned Gujarat Urban Development Company Ltd (GUDCL) and the private infrastructure giant IL&FS.
Spread across 900 acres of waste land on the banks of the Sabarmati river, GIFT City is just a 20-minute drive from Ahmedabad’s Sardar Vallabhbhai Patel International Airport and 15 minutes from the bullet train terminus.
Eighteen years later, Modi’s gamble has paid off richly. The sprawling complex, India’s first operational smart city, is rapidly reshaping the country’s ambitions for global financial leadership.
Global banks are flocking to the newest finance hub to take advantage of the nation’s surging demand for US-dollar denominated debt, taking a key business away from Asia’s dominant finance hubs, such as Hong Kong and Singapore. Banks in GIFT City disbursed nearly $20 billion in dollar loans to Indian corporates in the fiscal year ended March, 2025.
Today, GIFT City hosts 1,034 registered entities and 38 banks with $100.14 billion in assets. Ranked 46th globally on the Global Financial Centres Index (its highest ever), GIFT City has become the primary mechanism through which global capital — sovereign wealth funds, pension funds, and hedge funds among others access India’s $5 trillion growth opportunity.
Dipesh Shah, Executive Director (Development), IFSCA, said the cost of operation in GIFT City is one fifth of the total cost incurred in any other financial services centres in the world. A lot of Indian corporates are borrowing from GIFT City, as opposed to Dubai, Singapore, Hong Kong or London, earlier.
“In terms of the total capital raised, (banks operating from GIFT City have raised $58 billion) GIFT City has already overtaken Abu Dhabi and the next target is Dubai, Singapore, and Hong Kong. London and New York come subsequently,” Shah said.
Prime Minister Modi, in 2022, launched the India International Bullion Exchange (IIBX), the nation’s first such exchange.
In May 2025, GIFT NIFTY (India’s NSE derivatives contract traded in GIFT IFSC) recorded a monthly turnover of $102.35 billion, signaling growing confidence from global investors.
“GIFT City is steadily realising its vision of becoming India’s foremost global financial and technology hub. As the country’s only International Financial Services Centre (IFSC) and first operational smart city, GIFT City today hosts over a thousand financial and technology entities, including leading global banks, insurers, capital market players, fintechs, and Global Capability Centres (GCCs). The ecosystem is expanding rapidly, supported by world-class infrastructure such as district cooling, automated waste collection, integrated utility tunnels, and seamless multi-modal connectivity including Metro access,” said Sanjay Kaul, Managing Director & Group CEO, GIFT City.
Global banks opening branches
Standard Chartered, HSBC, J.P. Morgan, Citi, Deutsche Bank, BNP Paribas, and Barclays operate from GIFT City. The aggregate size of banking assets stands at $100.14 billion. Cumulative banking transactions have reached $142.98 billion.
They all came for a simple reason: this is where India raises capital now. Over the last one year, GIFT City accounts for $19 billion External Commercial Borrowings (ECBs), which is 36% of the total of $61 billion ECBs raised in the country. This share is further expected to go up.
The insurance ecosystem includes 52 insurance and intermediary entities like GIC Re, LIC, HDFC Life, and ICICI Lombard. Insurance and reinsurance entities have recorded $425 million in gross premiums.
The regulatory framework is transparent and efficient. The tax structure is aggressive: 10-year income tax exemptions, zero GST on IFSC transactions, zero security transaction tax. State subsidies cover 100% of stamp duty and electricity duty. These incentives exist nowhere else globally, not in London, Singapore, or Hong Kong.
Indian companies now bypass traditional offshore hubs to borrow from GIFT City. The cost is lower. The process is faster. The regulator, IFSCA, understands India’s development agenda.
“GIFT IFSC is contributing to India’s growth by enabling global capital to be intermediated onshore rather than through foreign jurisdictions. IFSC Banking Units have facilitated over $54 billion of foreign currency loans and $15.43 billion of trade finance, supporting the expansion of Indian corporates, while reducing external intermediation costs,” said K Rajaraman, Chairperson, International Financial Services Centres Authority (IFSCA).
The FinTech Edge
Wipro, Infosys, Cognizant, and Hexaware operate at GIFT City with 2,500 employees. Twenty FinTech entities and eight sandbox participants are building tomorrow’s financial infrastructure.
Beyond banking and finance, GIFT City has attracted semiconductor and energy companies. Infineon Technologies operates substantial semiconductor and systems operations with approximately 750 employees, while France-based Technip Energies employs around 500 professionals. Tech consulting firms like Accenture and Capgemini have also planted their flags, with the latter planning expansion to nearly 1,000 employees.
Smart City, Smart Infrastructure
What makes GIFT City different is what lies beneath. A 16-km underground utility tunnel houses power, water, sewage, and waste systems. There is no digging. Future repairs happen within the tunnel.
Power reliability: 99.999% uptime (5.3 minutes of potential outages annually). Water drinkable from any tap, zero discharge. District cooling consumes 30% less energy than traditional AC.
A Command & Control Centre monitors 70,000 real-time data points, managing the entire city as one integrated system.
Access to talent and expertise
With leading institutions like IIM Ahmedabad, IIT Gandhinagar, Gujarat Maritime University etc. nearby and multiple other colleges and universities in and around, GIFT City benefits from a talent pool of 38,000 annual graduates in AI, Data Science, IT, and Computer Science.
Currently, 28,000 people are working in GIFT City, and it is expected to touch 1 lakh by 2030, he said.
It has also emerged as India’s first gateway for international education in finance and technology, with Deakin University (Australia) and University of Wollongong (Australia) launched in 2024, and Coventry University (UK) and Queen’s University (UK) set to open in 2026.
Gujarat has 86,000 software engineers, 71,000 finance professionals, and 21,000 management experts. AI-skilled talent in Ahmedabad surged 142% in the past year.
“As we enter the next phase, our focus is on deepening global integration, strengthening talent pipelines, enabling innovation, and accelerating high-value economic activity. GIFT City is emerging as a project of national importance — a gateway for global capital, global capabilities, and global opportunities — and the journey ahead is even more promising,” Kaul added.
Demand for real estate
Complementing its bustling multi-services SEZ, which supports high-growth sectors such as banking, FinTech, IT and capital markets, it is also emerging as a significant aircraft and ship-leasing hub, with several companies shifting operations.
The real estate market is witnessing a steady rise in residential sales. Prices are firming up and commercial demand remains steady. As a result, the area is becoming a preferred destination for global firms, investors and NRIs.
“With supportive regulations, luxury living options and the momentum around Ahmedabad’s upcoming Commonwealth Games 2030, GIFT City presents a strong opportunity for long-term value creation and seamless integration with global financial growth,” said Sumeet Chunkhare, Chief Marketing and Communications Officer, Sobha Ltd. The company is building its third project in GIFT City.
GIFT City’s expansion and FinTech focus highlight India’s readiness for future financial leadership. With sustainability and innovation at its core, it is poised to anchor India’s vision of Viksit Bharat 2047.