The Gujarat International Finance Tec-City (GIFT) represents a pioneering step in India's economic development, aiming to establish India as a global financial hub. Established in the city of Ahmedabad, Gujarat. It is the first greenfield operational smart city that has an International Financial Services Centre (IFSC). The aim of the city is to attract global investors, drive technological advancements, create employment opportunities, and enhance India's standing in the global financial market.

This paper explores the role of GIFT in transforming India's economic landscape by promoting a business-friendly environment along with other incentives like regulatory benefits and tax-exemption and a dynamic infrastructure. It enters in a competition with the pre-existing global financial capitals, like, New-York, Singapore, Dubai, London and Shanghai etc.

Globally notable financial entities have established their operations in GIFT City, like, Bank of America, Google etc. Lastly in conclusion the initiative of the GIFT City is to add some more cities in India on the footings of GIFT City, which considers an essential to accelerate the country's economic growth, increase the country's global participation and helps to achieve India's ambitious economic goal.

Introduction
The term "GIFT" stands for "Gujarat International Finance Tec-city"[1]. It is India's first financial tech-city, also a first operational greenfield smart city, in the district of Ahmedabad, located at the bank of Sabarmati River, Gujarat. It starts with a vision to create India as a world class finance capital which provides its services not only in India but to the whole world. The concept of Gujarat International Finance Tec-city, derived from the concept of International Financial Service Center.

Such a concept was introduced to help the Indian economy in the global financial market. Wherein it invites the global investors to invest their money in India. By which the financial ecosystem of India will expand and provide more opportunities for more employment. Introduction of more technologies and innovations and skills. Also, helps to enrich the standard of the country in a global financial market. The said initiative was taken for development while ensuring sustainability. Inclusivity and nurturing ecosystems for excellence are the pillar of GIFT cities.

Following study will comprise some evidence in support of the view that introducing the GIFT is a good step to move India in a direction of Financial Capital. Also, along with some reasoning which say that it should have more Financial Tec-cities like Gujarat.

The Financial Districts and The GIFT City

The financial districts are the financially rich cities, which are also considered as a global financial epicenter[2]. Plays a significant role in not only the country's economy but also to the global economy. Financial activities like finance, trading and banking etc. These are the headquarters of decision-making in financial sectors. Along with the concentration of the financial Institutions these cities also have stock exchanges. Stock exchanges who function globally, crucial for raising funds/ capitals, trading financial instruments, and setting market prices.

These cities have the global financial influence on the global financial market and economic policies. Decisions of such may put a tumultuous effect on international trade, economic stability and investment flow. Highly skilled labor also works in these cities, who are well equipped with the latest technologies. Along with experts and professionals like economists, lawyers, analysts etc., who efficiently co-operate with their respective authority for the better functioning of these cities.

Here are some cities who are globally recognized Financial Tech-cities, like; New York (USA)[3], London (UK)[4], Tokyo (Japan)[5], Shanghai (China)[6], Singapore[7], Dubai (UAE) etc.[8] These cities are considered as a favorite destination for the leading business professionals, which suits their standard of living, better growth opportunity, and works at the global financial centers, also, while present they get to know how the world of finance gets shaped. Gujarat was the first Indian city which developed as an India's First Financial Tec-City[9]. It is considered a big rival against the pre-existing financial cities like Dubai and Singapore. GIFT is regulated under the guidelines of RBI and SEBI and Insurance Regulatory and Development Authority of India, major India's financial sector regulators.

RBI regulate (Banking and Forex)[10], SEBI (Capital Market) and IRDA (Insurance)[11]. City beholds a "hockey stick", as in order to function efficiently it has a huge area of land to operate i.e. 11.24 million sq. ft.[12] Along with attracting massive 1.5 US Dollar investment, which is tentative in nature. Companies will be going to operate in the city, some of them are: TCS[13], Oracle[14], Infineum (e-commerce website), Bank of Baroda, HDFC Bank, and NSE etc.[15]

GIFT is also an Exclusive Domestic Tariff Area (DTA). Initially in the year of 2007, wherein the Gujarat government took an initiative with an objective to develop Gujarat as a Financial Tech-city, world-class zone for services accommodation and high economic, commercial and technological infrastructure decided to set up. International Financial Service Centre categorize GIFT as a jurisdiction, a sturdy regulatory framework is developed wherein the city incurs a business-friendly eco-system, tax exemptions, liberalized trans-border transaction services, and also facilitates easy currency conversion.[16]

In 2018, the Finance Minister talked about exempting transfer of certain securities and derivatives by non-resident from capital gains tax, in order to promote trade in the stock exchange which is located in The International Financial Service Centre. Further, to exempt foreign portfolio investments from tax or will be less taxing, if they buy Sensex futures, Nifty futures, or more than 100 single-stock futures, which are available in GIFT city. If such a transaction is done in GIFT city, then it will ensure that it will divert the flights which till now are designed to reach the offshore centers such as Singapore.[17] With this initiative India witnesses the high growth of investment funds, from the funds raising activities, and cities like Singapore, Hong-Kong and Mauritius are the leading countries in this activity.[18]

As per the report of The Economics Times, Ajay Pandey, MD & Group CEO, GIFT City, praised and offered gratitude for the direction and support provided by the government of India through the Ministry of Finance, Ministry of Commerce & by all regulators namely RBI, SEBI & IRDA.[19] In the event of two years completed the functioning of the GIFT which has been instrumental in unleashing and enhancing the International Financial Services potential of the country. The said event was organized amid, GIFT has been ranked 10th in the Emerging Global Financial Centers (GFCI), leaving Luxembourg, Seoul, Abu-Dhabi, Toronto and Beijing behind.[20]

The Global recognition of GIFT City

At the initial stage of the development of the GIFT, in 2011 China's technology giant Huawei was likely to provide a technological assistant to GIFT. In order to provide such assistance, the company will partner with an Ahmedabad based Sai Infosystem, and provide information and communications technology solutions to GIFT. President of Huawei, Eric Yu, said, "Ensures to provide network solutions, setting data centers along with surveillance. Along with this there is also a possibility that Huawei will implement e-education and a "safe city project" in Gujarat.[21] Like these there are several global initiatives which have been taken by the leading financial countries to put GIFT city with the global standard and practice.

As of 2019, The Bank of America opens a global business center at GIFT City, at its capital Gandhinagar, on a land nearly 'one lakh sq ft' space. The chief and the technology officer of the bank, Mrs. Catherine Bessant, said that, "the establishment of the bank will provide employment to nearly 500 people, which will increase up to 1500 in future".[22]

Such practice will ensure strategic collaborations while entering in a partnership with other global financial entities, such as developing the trading platform for the global exchanges. Education is one of the subjects where the global relations prove a significant road map for the globalized education, wherein the international educational institutions provide Global financial and IT service standards. Two Australian Universities in the said open in GIFT city, one is Deakin University and University of Wollongong, in furtherance of the "Australia India Institute" project.[23]

In order to promote the trans-border financial services, International Financial Institutions set up in India to access the Indian market like, BSE Broker's Firm sets up a commercial tower at GIFT city, and plans to invest nearly 120 cr. for their back-office operation, such would offer modern facilities at a very convenient price. India's global benchmark IFSC international Financial Services Center, plans to host this iconic green tower for BSE Breaker Forum members.[24] Also, in 2022, PM inaugurated India's first Bullion Exchange which was set up in the city of Ahmedabad.

Elementary trading had begun with the small transactions at the center, in accord with the RBI's guidelines, which enabled the qualified jewelers to Import gold and silver through India's International Bullion Exchange. Here are some companies which has been set up to operationalize IIBX, for instance, India International Bullion Holding IFSC Ltd, along with National Stock Exchange (NSE), India INX International Exchange, Multi Commodity Exchange (MCX), National Security Depository (India) Ltd, and Central Security Depository (India) Ltd.[25]

Fintech and Innovation is one the objectives behind the setup of the GIFT cities, such as the partnership with global fintech entities, in order to develop India's standard at par with the other financial hubs. In furtherance of this objective, and with the vision of "digital India and economic opportunity", PM's vision was ahead when, on June 2023, Global Fintech giant Google's CEO meet Indian Prime Minister at Washington DC, in order to setup google global fintech operation center at the GIFT city, such initiative will progress India's leadership position and levitating Unified Payment Interface and Aadhar, India's Unique Identification System. CEO Sundar Pichai, said:
"While thanking The Prime Minister, the steps that we are going to take, will prove to be helpful in increasing India's global image. Also, Google invested 10 million US dollars in India's digitization fund including in companies working.

Pichai also added that, "Google team which works as a specialized fintech operation on all the google products at the google center in US, will also operate at the centers of Google fintech in GIFT city.[26] By establishing its operation in India particularly in GIFT City, will likely propel G-pays progress in South-east Asia and beyond. Such we ultimately support small and large businesses in India, US and the rest.[27]

The growth of the country's economy because of GIFT City

In the recent economic trend, which is far more dynamic than the old one. Recently the companies can mitigate a lot of input cost disadvantages through global sourcing or in other words out-sourcing, rendering the old ideas of comparative advantage less relevant. In an era when competition was driven mostly by the input-cost, usually enjoyed the comparative

advantage decisively and timely preserve with some important endowments like; natural harbor, cheap labor.[28] The GIFT city offers employment in various dimensions including Banking, Insurance, asset management, stock exchanges, hotel Industry and other financial services. For instance, Standard Chartered, Bank of America, Deutsche Bank, BSE Broker's Firm, Universities etc.

Also, in order to attract various businesses in the country it offers various tax incentives and regulatory benefits. City creates a global economic financial ecosystem for global financing and services. The location of GIFT city is very strategic which is good for the development, as a lot of other businesses may set up in the vicinity area, such as real-estate, and other industries such as hospitality and retail.

It will help to create job opportunities which help to boost the economy. On February 1st, 2023, the then Finance minister announced the growth plans for the GIFT city, wherein in the government set up single IT system for registration and approval of IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDA, and in order to avoid dual regulation, the government plans to delegate powers under the SEZ Act. Further, the government will facilitate setting up data embassies in the GIFT IFSC, by establishing a subsidiary EXIM Bank for trade refinancing.[29]

Such establishment of the EXIM Bank would encourage emerging sectors like ship financing activities and aircraft. And by setting-up data embassies it will facilitate digital continuity solutions for those countries who are seeking for such solutions. "GIFT city is speculated as the embodiment of Aatmanirbhar Bharat, a huge "Pratibha" and innovation.

The foreign investments were the key reason for an increasing liberal outlook towards capital account convertibility. GIFT is considered as a path-breaking financial reform in Indian financial history, which will help India's position in a global financial sector. In order to improve the socio-cultural aspect, R.S. Patnaik, head of taxation, in a notable leading Indian firm. i.e. Cyril Amarchand Mangaldas, said "we need to build schools and recreational spaces in the GIFT City, rather than focusing more on infrastructure, for the companies and their employees to create a base in GIFT City.[30] Now, here are some bullet points which talked about that how the GIFT

City helps to boost the country's economy, and those are as follows:

• Infrastructure: Development of an advanced infrastructure, including smart buildings, sustainable energy solutions, and efficient and modern transport facilities. It boasts of futuristic infrastructure, including internet connectivity, complete power supply, and a utility tunnel network (which helps in minimizing disruption to traffic and reducing the need for excavation).
   
• Employment: It generates a lot of employment opportunities. As it is home to various major companies, such as global banks, universities, IT services, and industries, there are opportunities for skilled professionals in their respective fields.
   
• International Financial Centre: GIFT City, India's first International Financial Services Centre (IFSC), is designed to cater to the demand for international financial services in India, allowing international transactions in foreign currency and expanding India's financial market. To achieve this demand, IFSC offers various services, including asset management, banking insurance, education policies, and a platform for companies to enter into the global market.
   
• Green Finance and Sustainability: Along with being a center for technology, it is also a center for sustainability and green finance. To this end, it attracts foreign investments in environmentally friendly projects, furthering India's goals of sustainable development and reducing the environmental impact of economic growth. The city focuses on long-term economic resilience and reducing costs associated with environmental degradation.
   
• India's Global Financial Presence: The city's partnerships with other global financial entities strengthen India's global presence in the financial market, allowing Indian-origin companies to work efficiently with globalized financial entities. Additionally, the establishment of the International Arbitration Center in GIFT City will reinforce India's legal framework to adjudicate international commercial disputes, making it an attractive destination for global business.

Conclusion.
There was an objective behind the establishment of the GIFT City, which may be to unleash the identity of India in the Global financial market. India has vast economic aspirations and in this line GIFT City plays a very bench-mark role which highlights the potentiality of the city in the globalized market. In order to decentralize economic growth and create new epicenters of innovation, investment, and global connectivity, and to serve these cities as catalysts for regional development, along with bridging the gap and fostering a balanced economic landscape of urban-rural, establishing GIFT City is the correct choice. It fosters India's infrastructure, boosts exports of financial services, brings prosperity to various regions and ultimately fosters a durable country's financial system.

Establishing more GIFT Cities will no doubt accelerate the country's economic growth, employment, enhancing global participation by exercising exports, offer global investment, boost India's technological and financial sector, and sustainable development. Anand Ranganathan, Chief Economic advisor, said, India will become a USD 5 trillion economy by 2025-26 and USD 7 trillion by 2030 depending on exchange rate fluctuation[32]. Further, he put concern in regards to policy making for investments, functioning of the private sector and economic outcomes, such will automatically accomplish the vision of India as a leading global economy. Finally, it is required for India to establish more GIFT City, firstly, it is a requirement of time, while considering the global competition in the technological arena, secondly, to enrich India's global participation in the financial market.

End Notes:

1. Gujarat Urban Development Company Ltd. A GOVT. OF GUJARAT, (Sept 08, 2023), Ind, https://gudc.gujarat.gov.in/gujarat-international-finance-tech-city
2. New York City Comptroller Brad Lander, Spotlight: New York City's Sector, 2023, https://comptroller.nyc.gov/reports/spotlight-new-york-citys-tech-sector/ published on New.
3. GOV.UK, Prime Minister Announces East London 'Tech City' To Rival Silicon Valley, 2010, https://www.gov.uk/government/news/prime-minister-announces-east-london-tech-city-to-rival-silicon-valley
4. Foreign Press Center Japan, Announcing The "Global Financial City: Tokyo", 2021, https://fpcj.jp/en/prlisting/tokyo_20211102
5. Press release, The People's Bank Of China, PBC ISSUES FINTECH DEVELOPMENT PLAN (2022 TO 2025), 2022, http://www.pbc.gov.cn/en/3688110/3688172/4437084/4441980/index.html
6. EDB Singapore, Singapore Ranks As World's 12TH TECH CITY, With Room To Grow As Tech-Savvy Generation Enter Job Market, 2022, https://www.edb.gov.sg/en/business-insights/insights/singapore-ranks-as-world-s-12th-tech-city-with-room-to-grow-as-tech-savvy-generation-enter-job-market.html
7. By Lawrence Wintermeyer, Dubai: On the road to becoming a top Global Financial Services Hub, FORBES, (Jul 19, 2023), https://www.forbes.com/sites/lawrencewintermeyer/2023/06/16/dubai-on-the-road-to-becoming-a-top-global-financial-services-hub/
8. Gujarat Urban Development Company LTD, Gujarat International Finance Tec-City (Gift) Project, (2024), https://gudc.gujarat.gov.in/gujarat-international-finance-tech-city#:~:text=GIFT City Project is promoted by Government of Gujarat (GoG)
9. Reserve Bank Of India, Rbi's Functions And Working, 2020, https://www.rbi.org.in/scripts/PublicationsView.aspx?id=18086
10. By Shara Balaji, Opportunities and Challenges for AIFs In India's First IFSC, GIFT City, Gujarat. MONDAQ,(Jul,11/2009), https://www.mondaq.com/india/fund-management-reits/824084/opportunities-and-challenges-for- aifs-in-indias-first-ifsc-gift-city-gujarat
11. Gujarat Urban Development Company LTD, Gujarat International Finance Tec-City (GIFT) Project, (Sep. 07, 2024), https://gudc.gujarat.gov.in/gujarat-international-finance-tech-city
12. Press release, TCS, SGX Selects TCS As Strategic Partner For Its Nse Ifsc-Sgx Connect In Gift City, 2022, https://www.tcs.com/who-we-are/newsroom/press-release/sgx-selects-tcs-strategic-partner-for-nse-ifsc-sgx-connect-gift city
13. By Timsy Jaipuria, Oracle is largest office space buyer in GIFT City, HINDUSTAN TIMES, (Jul 12, 2015), https://www.hindustantimes.com/business/oracle-is-largest-office-space-buyer-in-gift-city/story.html
14. By Goutam Das, GIFT makes steady progress; witnesses a 'hockey stick growth curve', (Jan 17, 2018), BT. Business Today, https://www.businesstoday.in/industry/infra/story/gift-city-gujarat-international-finance-tec city-jobs-companies-offices-99133-2018-01-17
15. By Kritika Narula et al, Unlocking Opportunities: Exploring the Potential of GIFT City as a Financial Hub, INVEST INDIA, (Jun, 05, 2023), https://www.investindia.gov.in/team-india-blogs/unlocking-opportunities-exploring- potential-gift-city-financial-hub
16. By N Sundaresha Subramanian, more gifts for GIFT City may stop flight of Capital to Singapore, The Economics Times| Markets, (Feb 01, 2018), https://economictimes.indiatimes.com/markets/stocks/news/more-gifts-for-gift-city-might-stop- flight-of-capital-to-singapore/articleshow/62744143.cms
17. By Sharda Balaji, Opportunities and Challenges for AIFs in India's First IFSC, GIFT City, Gujarat, MONDAQ, (Jul 11, 2019), https://www.mondaq.com/india/fund-management- reits/824084/opportunities-and-challenges-for-aifs-in-india's-first-ifsc-gift-city-gujarat
18. GIFT IFSC features among top 15 emerging global financial Centers, The Economics Times| Markets, (Oct 03, 2017), https://economictimes.indiatimes.com/markets/stocks/news/gift-ifsc- features-among-top-15-emerging-global-financial-centers/articleshow/60922246.cms
19. By Rajlakshmi S, GIFT-IFSC among top 15 global financial centers, THE HINDU BUSINESSLINE, (Jan 08, 2018)
20. By Chitra Unnithan, China's Huawei to provide tech for GIFT, THE TIMES OF INDIA, (Dec 16, 2011), https://web.archive.org/web/20120116131308/http:/articles.timesofindia.indiatimes.com/2011- 12-16/ahmedabad/30524622_1_huawei-india-international-finance-tec-city-sis
21. By FE Bureau, Bank of America opens Global Business Centre at GIFT City, FINANCIAL EXPRESS, (Dec 07, 2019), https://www.financialexpress.com/business/industry-bank-of- america-opens-global-business-center-at-gift-city-1786918/
22. By Mahesh Langa, Two Australian Universities open in GIFT City, THE HINDU, (Nov 07, 20230, https://www.thehindu.com/news/national/other-states/two-australian-universities-open-in- gift-city/article67504753.ece
23. By DNA Web Team, BSE to set up commercial tower at GIFT city in Gujarat, DNA, (Mar 19, 2018), https://www.dnaindia.com/business/report-bse-to-set-up-commercial-tower-at-gift-city-in- gujarat-2026420
24. By Niyati Parikh, Ahmedabad: India's first international bullion exchange to be inaugurated on July, 15, The Times Of India, (Jul 08, 2012), https://timesofindia.indiatimes.com/city/ahmedabad/ahmedabad-indias-first-international- bullion-exchange-to-be-inaugurated-on-july-15/articleshow/92735659.cms
25. TNN, Google to open global fintech operation center at GIFT City, TIMES OF INDIA, (Jun 25, 2023), https://timesofindia.indiatimes.com/city/ahmedabad/google-to-open-global-fintech- operation-center-at-gift-city/articleshow/101248819.cms
26. By Varsha Meghani, Why Google chose Gujarat for its global fintech operations hub, FORBES, (Jun 26, 2023), https://www.forbesindia.com/article/news/why-google-chose-gujarat- for-its-global-fintech-operations-hub/86119/1
27. By Michael E. Porter, Clusters and New Economics of Competition, HARVARD BUSINESS REVIEW, (Dec 1998), https://hbr.org/1998/11/clusters-and-the-new-economics-of-competition
28. By Vidhi Vivek, Union Budget announces plans for GIFT City: Here's what to expect, The Hindu, (Feb 02, 2022), https://www.thehindu.com/business/union-budget-announces-plans-for-gift-city-heres- what-to-expect/article38421244.ece