Gift City for the Indian Startup Ecosystem?
04 July, 2023
Gujarat International Finance Tec-City (GIFT City) is a smart business district conceptualised by the Government of the state of Gujarat and the Government of India. The objective of GIFT City is to build a financial and information technology hub for companies operating domestically and internationally. Business enterprises can participate in the GIFT City initiative by establishing their business units. These enterprises can be startups operating in banking, insurance, capital markets, Fintech, automobiles, engineering, and other financial or IT sectors. Continue reading to understand how GIFT City impacts the Indian startup ecosystem.
Role of GIFT City in the Growth of The Indian Startup Ecosystem
Listed below are notable value prepositions of GIFT City that impact the growth of Indian startups:
Highly Developed Infrastructure
The smart plug and play infrastructure established at GIFT City boasts of smart & intelligent offices and landmark buildings that lead to a high-rise commercial business district. On the technological front, startups can leverage the broadband FTTP, shared IT services, and global connectivity for seamless operations. GIFT City also emphasises on social infrastructure and retail cum entertainment hubs to cater to the needs of the workforce at startups and established enterprises.
Cost-Saving Incentives
The role of GIFT City in Indian startup’s growth reflects in the cost-saving incentives it provides. Business establishing units in GIFT City enjoy 20% reduction in operating costs compared to other locations. Moreover, the Government of Gujarat facilitates the ease of doing business with single window clearance for business unit allotment, planning, construction, and occupancy with no stamp duty and registration charges. Other incentives include EPF reimbursement, power subsidy, lease rental subsidy, etc.Supporting Ecosystem
The infrastructure of GIFT City is designed in a way that propels Indian startups to achieve success at international standards. All the major sectors focusing on financial and Informational technology can leverage the business environment and living space at GIFT City. Comparable to global best practices, the GIFT City ecosystem comprises utility tunnel, India’s first district cooling system, automated waste management, city command and control centre, and smart water & power infrastructure.Strategic Business Location
GIFT City is strategically located between Ahmedabad and Gandhinagar on the banks of Sabarmati. With this approach, both cities play a distinct supportive role. While Ahmedabad has a glorious history, Gandhinagar functions as the central hub for policy and decisions. Both cities come together at GIFT City, forming the main centre of economy. The location also offers easy connectivity to domestic and international airports, suburban railway system and well-developed roadways.Talent Acquisition
Due to the presence of educational institutions, international and domestic schools, universities and technical training institutes in GIFT City, businesses can get abundant access to talent. Companies can get easily find individuals in valuable spaces like Fintech, Information Technology/IT-enabled services, and financial services, enhancing success and growth. Besides recruitment, GIFT City also facilitates talent retention, which helps maintain low attrition and avoid the cost of new recruitment, retention, training, and so on.
Get Financial Solutions for Your Business from HDFC Bank at GIFT City
As you establish your business unit in GIFT City, you will have several opportunities to save on finances with numerous incentives and the competitive tax regime of GIFT City. If you need additional financial and treasury solutions to boost your investment and capital market activities as a business, HDFC Bank, an IFSC IBU at GIFT City, can provide the necessary assistance. You can avail of HDFC Bank’s services to streamline your fund management, facilitate bullion exchange, and access vital banking solutions across Indian and international markets.
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The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Investments are subject to changes in tax laws. Please contact a professional consultant for an exact calculation of your liabilities.