A limited talent pool, weak lifestyle ecosystem, and lack of campus vibrancy are emerging as some of the big weaknesses of GIFT City, says an official document presented at a recent review meeting with Union Finance Minister Nirmala Sitharaman.

Creating “world-class liveability” will not be easy due to an underdeveloped entertainment ecosystem and urban landscaping challenges, it says.

Financial hubs such as Singapore, Abu Dhabi, and Hong Kong are continuously strengthening their ecosystems through agile regulations, infrastructure expansion, and targeted capital attraction measures.

GIFT IFSC will thus need to constantly benchmark itself against global best practices while leveraging India’s macroeconomic stability, digital public infrastructure, vast skilled workforce, and long-term growth potential. GIFT City is the popular name for Gujarat International Finance Tec-City in Gandhinagar.

Coming Up, A Vision Document 

GIFT City and the International Financial Services Centres Authority (IFSCA) are expected to jointly prepare a comprehensive long-term Vision Document aligned with Union Budget announcements.

This was highlighted in presentations made during Finance Minister Sitharaman’s recent review visit. The presentations stated that the proposed Vision Document would outline sector-wise growth pathways, infrastructure priorities, capital formation strategies, talent attraction frameworks, and the need for further regulatory reforms.

The document titled “GIFT IFSC: Present Status & Future Opportunities” noted that global competition among international financial centres is intensifying rapidly.

Aligning With The Union Budget

Of the 14 major announcements made in Union Budgets since 2018, the implementation of most initiatives has already begun. The government has now prepared a mega vision roadmap for GIFT City targeting 2031 and 2047.

The overall presentation clearly signals that the Narendra Modi government intends to position GIFT City not merely as a financial zone, but as “India’s Global Financial Gateway.”

Following the enactment of the IFSCA Act, 2019, a total of 35 regulations and five frameworks have been implemented.

At the conclusion of the recent review meeting, Finance Minister Nirmala Sitharaman said, “GIFT City will serve as a gateway for new opportunities in technology, talent, and economic growth for India. Several policy decisions have been taken to attract more international companies and accelerate economic activities, with talent pool development remaining central to this vision. If future-oriented discussions are implemented immediately, transformative changes can be achieved at the ground level.”

 

Institutions Operating in GIFT City

P. K. Mishra, Principal Secretary to the Prime Minister, has said that GIFT City’s achievements so far are commendable. “To realise the Prime Minister’s vision, there is a need to attract skilled human resources and build world-class infrastructure. The government has consistently strengthened the competitiveness of GIFT IFSC through internationally aligned regulations, globally competitive tax structures, and Ease of Doing Business reforms.”

He said around 1,150 registered entities are currently operational in GIFT City, reflecting strong momentum across sectors. The banking ecosystem currently includes 37 banks, while banking assets have crossed US$ 111 billion.

Weak Links in GIFT City

The biggest battle is no longer policy, but liveability.

The shortage of talent, a dull nightlife, and a weak urban experience continue to hinder the experience in GIFT City. A global lifestyle ecosystem is yet to emerge in order to attract global investors. Weak landscaping and a limited social ecosystem remain major concerns.

Challenges the Vision Document Aims to Address

To overcome GIFT City’s biggest structural weaknesses, the Central government is expected to focus on high-end housing, sports ecosystems, riverside development, mega events calendars, Miyawaki forests, and global urban standards in the upcoming Vision Document.

Five Major Policy Battles

Gift City has five major policy battles on hand. These are making India’s gold trade shift from Dubai to GIFT City; permission for foreign universities; efforts to build an international arbitration hub on the lines of Singapore and London; expansion of aircraft leasing finance and ship leasing ecosystems; and experiments in future finance — from stablecoins to token trading.

GIFT City’s Mega Vision for 2047

Banking:

Banking assets: From US$ 111 billion to US$ 600 billion

Trade finance: From US$ 50 billion to US$ 500 billion annually

Funds Industry:

Total commitments: From US$ 39 billion to US$ 500 billion

Retail investors: From 3,400 to 3 million

Capital Markets:

Monthly exchange turnover: From US$ 17 billion to US$ 600 billion

ESG debt listings: From US$ 30 billion to US$ 100 billion

Insurance:

Reinsurance premium: From US$ 1.2 billion to US$ 6.5 billion annually