June 13, 2023
Gujarat International Finance Tec-City (GIFT City) has only attracted USD 102 million in foreign direct investment (FDI) so far, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT). This is a small amount compared to the USD 17 billion in FDI that came to India in 2022-23.
There are a number of reasons why GIFT City has not attracted more FDI. One reason is that the city is still relatively new. It was only inaugurated in 2015, and it is still under development. Another reason is that the city is located in Gujarat, which is not as well-known as other states in India for attracting FDI. Despite the low level of FDI, GIFT City has some potential advantages. It is located near the international airport in Ahmedabad, and it has a good transportation infrastructure. The city also has a number of tax incentives for businesses, and it is a free trade zone.
The Gujarat government is hoping that GIFT City will become a major financial hub in India. The government has invested heavily in the city, and it has plans to build a number of new infrastructure projects, including a metro system. The government is also hoping to attract more FDI from foreign banks and financial institutions. It remains to be seen whether GIFT City will be able to attract more FDI and become a major financial hub in India. However, the city has some potential advantages, and the Gujarat government is committed to its development. Economic Perspective The low level of FDI in GIFT City is a cause for concern. FDI is important for economic growth, and it can help to create jobs and promote innovation.
The Gujarat government needs to take steps to attract more FDI to GIFT City if it wants the city to become a major financial hub in India. Here are some of the steps that the Gujarat government can take to attract more FDI to GIFT City: Improve the city’s infrastructure. This includes building a metro system, improving the road network, and expanding the airport. Offer more tax incentives to businesses. This will make GIFT City more attractive to foreign investors. Promote GIFT City to foreign banks and financial institutions. This can be done through roadshows and other marketing activities. The Gujarat government needs to take these steps if it wants GIFT City to become a major financial hub in India.
