GIFT City: A Plethora of Opportunities

International Financial Service Center-Gujarat International Finance Tec-City which is abbreviated as IFSC-GIFT City, planned as a Greenfield business district, GIFT is located between Gandhinagar and Ahmedabad. It is set up specifically to cater to financial services and IT firms looking to build operations in India. Business hotels in Ahmedabad and hotels near IIM Ahmedabad will be completely booked when the Gift city starts its operations. The city when complete will host 8.5 million square feet of constructed space with cutting edge connectivity and infrastructure with provision for a huge green belt. The primary idea is to host a financial hub which replicates the SEZ model that can aid in increasing financial transactions to India as opposed to the situation today.

There are perks of opening a shop at the GIFT City. Specific tax and FEMA exemptions will be granted to firms operating in GIFT city to incentivize large global players to set up operations here. Other advantages include no taxes on foreign investors. Foreign portfolio investors trading through India’s first International Financial Service Center will be completely exempted from paying the following five taxes- minimum alternate tax, commodities transaction tax, long term capital gains tax, dividend distribution tax, and stamp duty.

In addition, players will also enjoy tax holiday for the first five years, which can also be extended under certain conditions. Also, units will not have to pay any indirect tax on goods and services procured within the city. With the market regulators approval, foreign exchange can set up an operation in the city. GIFT will provide as many as 500,000 direct and indirect jobs in India. The hope is that Gift will do to Indian growth what Hong Kong has done to the mainland Chinese firms.

Gift lays emphasis on technologically advanced and environment-friendly construction of the real estate, which could also serve as a benchmark for future smart cities. Finding accommodation in hotels near IIM Ahmedabad will be a challenge after the City hosts guests and businessmen from around the globe. More than 100 brokers have registered with GIFT City and 35 of them have received permission from the market regulator to begin operations. Foreign brokers are also in this queue. Banks from Singapore, agencies of the United Nations and organizations such as the International Monetary Fund will open offices in GIFT.

As the city is situated between Gandhinagar and Ahmedabad, one could go to either of the two towns to relaxation. There are many places to see and visit in both the cities. One could book a room in one of the business hotels in Ahmedabad and then go sightseeing or enjoy a wide range of cuisine most readily available. A weekend getaway from a busy office is always a gift.

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Created on Jul 3rd 2019 04:37. Viewed 279 times.

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