Overview on Gift Special Economic Zone

On 10th October 2022, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal evaluated the working of the GIFT Special Economic Zone and problems with respect to regulatory aspects of operation of SEZ & office of the DC GIFT in Gujarat. The India’s first India International Bullion Exchange (IIBX) had been inaugurated on 29th July 2022 by Prime Minister Narendra Modi at Gandhinagar’s GIFT city. Let’s take a look on highlights of the meeting as well as on Gift City.

Highlights of Gift Special Economic Zone

• The Minister had spoken at the International Bullion Exchange (IIBX) in GIFT City to know the depth of the issues with respect to trading of Gold; engage the Gold Spot exchange and decreasing the cost of gold metal loans for jewellery exporters through Gift IFSC.
• “India International Bullion Exchange (IIBX), GIFT City is one of its kinds globally. Urged representatives of Jewellery sector to discover competitive prices for gold through IIBX. Also explained how India-UAE CEPA is a huge window of opportunity for them”, he tweeted.
• He also issued directions to improve the trading of Gold on the IIBX, including enabling the utilization of the TRQ on gold obtained in UAE FTA be operated from IIBX.
• Goyal met representatives of International Financial Services Centre’s Authority (IFSCA) at GIFT City and resolved various administrative issues with the office of the DC GIFT SEZ and IFSCA.
• IFSCA is to participate in periodic review of exports with EPC and exporters done by the Minister to check as to how the IFSC financial infrastructure can be leveraged to increase exports.
• “IFSC will be a key driver of economic growth with enhanced Ease Of Doing Business for global investors who will gain from the India growth story”, the Minister tweeted on the meeting.
• Goyal interacted with various heads of units in GIFT city comprising Bankers, fund managers, derivative exchange management, aviation industry representatives among others and heard their issues with allied offices of C&I, DGFT and SEZ among others.

75TH LISTING OF BONDS ON INDIA INX

India INX marked Azadi ka Amrit Mahotsav by achieving the pinnacles of 75th bond listing on its exchange. Demonstrative of the competitiveness of the stock exchange in global markets, bonds of cumulative value of approx. USD 50 Billion have been listed on India INX.

WHAT IS GIFT CITY?

• GIFT (Gujarat International Finance Tec-City) City is located in Gandhinagar, Gujarat.
• It has a multi-service Special Economic Zone (SEZ), which houses India’s first International Financial Services Centre (IFSC) and an exclusive Domestic Tariff Area (DTA).
• GIFT city (Gujarat International Finance Tec-City) is a multicultural hub for financial and technology services not just for India but for the globally.
• IFSCA is the unified regulator for the development and regulation of financial products, financial services and financial institutions in International Financial Services Centers (IFSCs) in India.
• The social infrastructure in the city includes a school, medical facilities, a proposed hospital, GIFT City business club with indoor and outdoor sports facilities. It also includes integrated well-planned residential housing projects making GIFT City a truly “Walk to Work” City.

Aim Of The Gift City Project

• As per official statements, the Gujarat International Finance Tech City will be a major boost to India’s Smart-City missions by playing a key role in the burgeoning finance and technology sectors.
• The concept of GIFT City was ideated in 2007 and its planning was awarded to East China Architectural Design & Research Institute (ECADI), which is credited with the planning of much of modern-day Shanghai.

What are the proposed utilities for the city?

• Power & Energy: A 400 MV electrical supply line is initiated to be laid which will reduce the chances of power disrupt. The cables will be laid in a utility tunnel consisting of thick concrete walls in redundant paths.
• Telecommunication Services: GIFT City will have state-of-the-art telecommunications systems which will be based on the concept of FTTX (Fiber to home/office). The communications lines will be laid in fault-tolerant rich architecture to ensure maximum uptime of services
• Piped gas: Natural gas is distributed to every house and building via pipes, which is cheaper and safer than cylinders. Gas supply to the city is done from the existing gas network of the state-owned company for gas transmission pipelines. Piped natural gas is already in distribution in the nearby cities of Ahmedabad and Gandhinagar.
• Solid waste management: All waste in the city are collected and taken to the processing plant by vacuum chutes installed at every floor of all buildings. The waste is automatically sucked through underground chutes at a high speed of 90 km/h and is being treated through various methods including plasma gasification.
• Transportation: Transportation in GIFT City will consist of the following: Metro, Light Rail and Bus Rapid Transportation System. Use of electric personal rapid transit systems within the city.

Progress in Gift City till Date

• On October 18, 2014, it was declared that Bengaluru based Brigade Group would invest Rs. 500 Core to develop 100,000 square metres of built-up area with further options in developing and additional 160,000 square metres at a cost of Rs.600 crore.
• The government of India has equipped for Single regulator for GIFT City in the annual budget of the year 2020.
• The essential customers in the city are Oracle Inc., TCS, Bank of America, Cybage, BSE, NSE, MCX, STT (Singapore Telemedia), etc.
• GUDC (Gujarat Urban Development Corporation) is expanding the software development centre for various IT companies of Gujarat. This centre will focus on new innovations in the field of IoT, Analytics, BI and Robotics.
• GIFT City’s first housing project of affordable housing ‘Janmangala’ was inaugurated in the year 2017. The project has around 300 dwellings.
• On 5 December 2019, Business Standard reported that Bank of America opens Global Business Services Center at GIFT City.
• India’s biggest real estate developer Sobha Developer is constructing premium housing in GIFT City. This will be 32 storied building with world-class amenities
• On 6 January 2020, Accor opens the first international hotel in GIFT City.