SUNBIZ

India’s First Smart City Takes Shape

Gujarat, one of India’s largest manufacturing hubs and Prime Minister Narendra Modi’s home state, is the site of the country’s first smart city built from scratch. Launched in 2007, Gujarat
27 Oct 2014 10:19
India’s First Smart City Takes Shape
The GIFT City construction takes shape.

Gujarat, one of India’s largest manufacturing hubs and Prime Minister Narendra Modi’s home state, is the site of the country’s first smart city built from scratch.

Launched in 2007, Gujarat International Finance Tec-City (GIFT) is Modi’s dream project and a joint venture between the Gujarat state government and Infrastructure Leasing & Financial Services.

The US$12 billion smart city, located 12km from Ahmedabad international airport and 8km from the state capital, Gandhinagar, aims to become a global financial hub, offering international companies world-class infrastructure.

“The project is attracting a number of companies. The Bombay Stock Exchange (BSE) Brokers’ Forum has been allotted 300,000 sq. feet (27,870 sq. meters) in GIFT city for development of a commercial tower,” Gujarat Finance Minister Saurabhbhai Patel told the Nikkei Asian Review.

The BSE Brokers’ Forum is shifting its back office operations to a US$20 million tower in GIFT city from Mumbai to cut costs.

“With Gujarat being a low-cost center, naturally the cost there is lower than Bombay,” said Alok Churiwala, vice chairman of BSE Brokers’ Forum, which has stake of about 40% in the BSE.

The BSE is the world’s largest stock exchange in terms of listed companies with more than 5,000.

More stock exchanges from around the world are expected to set up operations in GIFT city in the coming years.

GIFT plans to attract 6-8% of India’s financial services to the new smart city.

The 358 hectare smart city is still being built, however developers are trying to speed up construction.

Gujarat, which had strong growth during Modi’s tenure as its chief minister, accounts for 16% of manufacturing in India and 25% of the country’s exports.

“Gujarat ports also handle 33% of India’s cargo,” Patel said.

Idea

The idea for GIFT city came about after Modi visited Hong Kong’s International Finance Center.

A report by McKinsey & Co. found that financial services in India were contributing 5% to the country’s gross domestic product and that the figure is expected to rise to 15-20% by 2020.

Feedback:  rachnal@fijisun.com.fj

 

Fiji Sun Instagram
Subscribe-to-Newspaper
error: