Ahmedabad: Located just 30 kilometers from Ahmedabad in Gujarat’s heartland, the Gujarat International Finance Tec-City, commonly called GIFT City, stands as a symbol of contemporary ambition. Initiated in 2007 under then-Chief Minister Narendra Modi’s vision, GIFT City marks India’s ambitious attempt at establishing a premier International Financial Services Centre (IFSC).
Nearing the close of 2025, this 886-acre smart city showcases innovation, forward-thinking regulation, and economic promise, attracting international institutions while establishing India as a serious contender in global finance.
More Than a Financial District
GIFT City aims to function beyond a mere financial zone it’s conceived as a self-reliant ecosystem seamlessly integrating work, residence, and recreation. Split into two sections the domestic GIFT City and the specialized IFSC it provides tax benefits, simplified regulations, and cutting-edge infrastructure to enable cross-border financial operations.
The IFSC functions essentially as a quasi-foreign jurisdiction, facilitating smooth flows of capital, products, and services. This structure has drawn major players including HSBC, Standard Chartered, Bank of America, Infosys, and Wipro, alongside Indian heavyweights like NSE IFSC and BSE’s India International Exchange. These entities demonstrate GIFT City’s increasing prominence as a conduit for international investment into India.
Infrastructure Transformation
Among GIFT City’s most striking accomplishments is its swift infrastructure buildout. From barren terrain merely 15 years ago, it has evolved into a hub featuring 14 modern, environmentally conscious buildings with underground utilities, energy-saving district cooling systems, and tree-filled avenues.
The development features high-speed connectivity, intelligent urban design, and facilities promoting a “15-minute city” concept where residents can reach offices, homes, schools, hospitals, and leisure spaces within walking distance. A 300-bed hospital nears completion, a premium Hyatt Regency hotel is under construction, and a central park featuring food courts and green spaces is being developed. These additions boost operational effectiveness while advancing sustainability, matching international green urban standards.
Financial Expansion
Financially, GIFT City has demonstrated remarkable expansion. Banking assets have doubled to USD 90 billion over just the last two years, according to International Financial Services Centres Authority (IFSCA) figures. Both committed and completed investments have surged, with over 1,034 registered entities now functioning within the IFSC as of 2025.
The city’s exchanges are building momentum, particularly through partnerships like the NSE IFSC-SGX link enabling seamless Indian securities trading. This positions GIFT City to compete with established centers by facilitating price discovery for Indian stocks and commodities domestically, decreasing dependence on overseas exchanges in Singapore or Dubai.
Regulatory Progress
The regulatory framework, managed by IFSCA since 2020, has proven transformative. Under Chairman K Rajaraman’s leadership, the authority has received acclaim for its progressive stance. New frameworks for fund managers, streamlined migration procedures for foreign funds, and expanded schemes like the Liberalised Remittance Scheme have enhanced GIFT City’s attractiveness.
Fund managers from firms like Blume Ventures and Kedaara Capital have established operations here, consolidating international capital previously channeled through Mauritius or Singapore. This transition stems from tax advantages and regulatory backing, establishing GIFT City as a favored location for innovative investment vehicles.
Quality of Life Appeal
Beyond finance, GIFT City attracts professionals through quality-of-life benefits. Fund managers like Mahesh Chhabria at SBI Funds International emphasize advantages including brief commutes, additional time for personal activities like yoga or reading, and a peaceful atmosphere away from urban congestion. With residential units selling rapidly and developers like Sobha Ltd. reporting robust demand, the population is forecast to expand from the current 1,500–2,000 residents to exceeding 25,000 by 2030. This growth is anticipated to energize the local economy, generating employment and nurturing a dynamic community.
The ‘Ghost Town’ Criticism
Despite these achievements, GIFT City faces criticism, frequently being called a “ghost city” due to perceived abandonment after business hours. With many of its 28,000 professionals commuting from nearby Gandhinagar or Ahmedabad, streets feel noticeably quiet during evenings. Restricted social facilities—including diverse restaurants, entertainment options, and nightlife—prompted Singapore’s High Commissioner Simon Wong to describe it as a “ghost town” after dark in 2022.
Alcohol restrictions linked to Gujarat’s prohibition laws add challenges, requiring special permits and discouraging casual socializing. Professionals frequently depend on home-prepared meals or building canteens, while events at venues like Grand Mercure or GIFT City Club typically cater more to weddings than business networking.
These issues reflect the city’s youth—as an ongoing project, it lacks the organic vibrancy of established hubs like Dubai’s IFC or Singapore’s financial district, where decades of growth have created flourishing residential and social environments. However, these “ghost city” perceptions are increasingly viewed as temporary obstacles rather than fundamental shortcomings. Specialists compare GIFT City’s trajectory to planned developments like Songdo in South Korea or King Abdullah Economic City in Saudi Arabia, which required years to draw residents through sustained investment.
IFSCA actively tackles these gaps, from requesting alcohol policy exemptions to expediting residential and recreational construction. As Executive Director Deepesh Shah notes, the transformation from empty land to a smart city center already represents significant progress, with additional infrastructure approaching completion.
In the Global Financial Centres Index, GIFT City has risen to 46th position—the highest ranking for any Indian city, surpassing Mumbai—indicating its ascending status. It’s not merely about competing globally; it’s about reshaping India’s international finance role, attracting billions in capital and generating opportunities for innovation in fintech, asset management, and more.
Strategic Location
Situated on the Sabarmati River’s eastern banks, GIFT City occupies the 12-kilometer stretch between Ahmedabad and state capital Gandhinagar. Covering 886 acres (with expansion plans to 3,300 acres), it sits 30 minutes from Sardar Vallabhbhai Patel International Airport and connects via the Ahmedabad-Gandhinagar elevated corridor.
This riverfront position, formerly farmland, provides flood-resistant elevation and environmental buffers, combining urban density with ecological zones like Samruddhi Sarovar lake and Tapas Udyan park. As India’s first operational IFSC, it supports 24/7 trading with utility tunnels, district cooling, and zero-waste systems creating a self-sufficient ecosystem. Proximity to Gujarat’s industrial sector (textiles, chemicals) and Modi’s “Vibrant Gujarat” summits reinforces its position as a fintech gateway to South Asia.
The Rs 20,000 Crore Investment
Total construction costs have exceeded Rs 20,000 crore ($2.4 billion) since 2011, financed by Gujarat government, IL&FS (subsequently acquired by the state), and private investors like Kotak Mahindra and Brigade Group. Phase 1 alone accounted for Rs 14,000 crore toward 62 million square feet of mixed-use space, towers, bridges, and infrastructure including the GIFT-PDPU bridge and arterial roads.
The spending breakdown includes:
- Initial Investment (2011–2015): Rs 3,000–5,000 crore for land procurement and master planning by East China Architectural Design Institute
- Core Infrastructure (2016–2020): Rs 9,000 crore for utilities (power grid, sewage treatment), amid IL&FS crisis delays
- Recent Expansion (2021–2025): Rs 5,000–6,000 crore from Budget 2025 incentives, including Rs 450 crore for a foreign university hub and expansions like Fintechone tower
By mid-2025, 50% of the planned 29 million square feet has been allocated, though occupancy remains at 30–40%, contributing to the “ghost town” label.
As GIFT City evolves, questions persist: Will it completely overcome its “ghost city” reputation and become a vibrant 24/7 metropolis rivaling global leaders? Or will fresh challenges emerge in pursuing international prominence? Only time and collective efforts from visionaries, regulators, and residents will determine this ambitious project’s next phase, with full completion targeted around 2030.
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