GIFT-IFSC Global City to Expand by 2,300 Acres

Hong Kong, Barcelona (Spain), San Francisco (US), and Leon (France) were among the cities suggested as potential examples for the project. The discussion focused on developing a business area that would attract corporates and businesses with international operations, including holding corporations, as well as their senior executives, to the GIFT-IFSC Global City.

The stakeholders talked on making enough room for low-rise residential buildings (no more than five to six storeys), open spaces, and shopping, entertainment, and recreation zones along Gandhinagar's freshly recovered riverside area.

"The focus will be on low-rise buildings, walk-to-work culture and world class social infrastructure so that families can enjoy a better quality of life," said a senior official in the urban development department.

The additional 2,300 acres of land comprises state-owned and privately held land parcels. "The emphasis will be on the tri-city of Ahmedabad, Gandhinagar and GIFT City in the overall development plan," added the senior official.

However, analysts believe that not only solid social infrastructure, but also an appealing tax structure, are required. Individuals who earn foreign exchange through multinational businesses, for example, incur substantial taxes in India. This is why senior executives and decision-makers are hesitant to relocate to GIFT Global Finance Business City, they claim.

Ramakant Jha, former MD and Group CEO, GIFT City said, " Singapore should be considered as a benchmark, and we should be better than them. Apart from world class infrastructure, we need to frame conducive rules and tax systems that help in ease of business. This will also include suitable modifications in the existing SEZ rules to enable people working in the IFSC area to be treated as deemed NRIs."

He added, "There should be more involvement from the Union ministry of finance for better understanding of the requirements of global finance and business operations, planning and development of institutions within the GIFT-IFSC Global City."