Gandhinagar, August 11: Gujarat Chief Minister Bhupendra Patel announced on Tuesday that the state government has allocated 39% of its total budget for capital expenditure this year. This decision reflects the state’s commitment to infrastructure and emerging sectors as GIFT City evolves into an international financial center.
During the inaugural session of the Global Connect GIFT City Edition, co-hosted by HSBC and NDTV, CM Patel emphasized that this capital expenditure allocation is part of a broader focus on infrastructure, advanced technology, semiconductors, data centers, and artificial intelligence (AI).
He stated that GIFT City has become a powerful tool in realizing Prime Minister Modi’s vision of globalizing India’s financial sector. “As the country’s first financial tech city, GIFT City is creating a new identity for India on the global stage,” Patel remarked.
The Chief Minister highlighted that under Modi’s leadership, India is progressing towards becoming the world’s third-largest economic power. GIFT City uniquely hosts the International Financial Services Centres Authority (IFSCA) and operates a bullion exchange, both of which are propelling the growth of the financial sector.
“GIFT City is expanding across various sectors, including banking, insurance, asset management, capital market services, fund management, fintech, aircraft leasing, and ship leasing,” Patel added.
He also pointed out that the central budget has announced special incentives for businesses operating in GIFT City. The provision for a continuous 20-year tax exemption, as opposed to the previous 10-year period, is expected to boost investor confidence and resilience in this financial hub.
Patel underscored the evolving role of AI in financial services, noting that it is no longer confined to the tech sector but is making significant impacts in banking, risk management, and wealth management. “The AI Center of Excellence established in GIFT City has become a robust platform for bringing together new solutions, experts, businesses, and startups,” he said.
He also mentioned GIFT City’s potential in addressing global warming and climate change, aligning with the Prime Minister’s vision for ‘green development’ through green bonds, sustainable financing, climate finance, and renewable energy financing.
The mantra of “good earnings, good life” is being realized in GIFT City, with a focus on improving connectivity and amenities for residents and workers. “Metro connectivity has made transportation easier, enhancing the convenience and commute for those living and working in GIFT City,” Patel noted.
He added that the extension of Ahmedabad’s Sabarmati Riverfront to GIFT City is progressing rapidly. Reflecting on the area’s transformation, he remarked, “This location was once primarily made up of fields and the Sabarmati river valleys, but now it hosts world-class financial institutions.”
Patel cited the construction and development of GIFT City as an example of Prime Minister Modi’s vision of “thinking ahead of the present and turning that foresight into reality.”
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