Gujarat sets aside 39 pc of budget for capital expenditure, CM highlights GIFT City's financial growth
Gandhinagar, Aug 11
The Gujarat government has allocated 39 per cent of its total budget this year towards capital expenditure, Chief Minister Bhupendra Patel said on Tuesday, highlighting the state's focus on infrastructure and emerging sectors as GIFT City continues to develop as an international financial hub.
Patel made the remarks while addressing the inaugural session of the Global Connect GIFT City Edition, jointly organised by HSBC and NDTV at Gujarat International Finance Tec-City (GIFT City).
He said the allocation for capital expenditure was part of the state's broader focus on infrastructure, advanced technology, semiconductors, data centres and artificial intelligence (AI).
The Chief Minister said that GIFT City had become a powerful instrument for realising Prime Minister Narendra Modi's vision of globalising India's financial sector.
"GIFT City, by becoming the country's first Financial Tech City, is creating a new identity for India across the world," Chief Minister Patel added.
He said that India is moving towards becoming the world's third-largest economic power under PM Modi's leadership, while the International Financial Services Centre (IFSCA), the country's only such centre, and the bullion exchange operating at GIFT City were providing fresh impetus to the development of the financial sector.
"GIFT City is expanding across a range of sectors, including banking, insurance, asset management, capital market services, fund management, fintech, aircraft leasing and ship leasing," he noted.
Patel said special incentives had been announced in the Union Budget for businesses operating from GIFT City.
He pointed to the provision for a continuous 20-year tax holiday instead of the earlier 10-year period, saying this would provide investors with greater confidence and flexibility to invest in the financial hub.
He also highlighted the changing role of AI in financial services.
According to Patel, AI was no longer confined to the technology sector and is bringing significant changes to banking, risk management and wealth management.
"The AI Centre of Excellence established at GIFT City has become a strong platform for bringing together new solutions, experts, businesses and start-ups," the Chief Minister said.
He also pointed to GIFT City's potential in green bonds, sustainable financing, climate finance and renewable energy financing as part of efforts to address global warming and climate change and advance the Prime Minister's 'green growth' approach.
He said the development mantra of "earning well, living well" is being realised at GIFT City, with efforts also focused on improving connectivity and facilities for people living and working there.
"Transportation has been made easier through metro connectivity to improve convenience and mobility for people living and working at GIFT City," he added.
Patel said that work to extend Ahmedabad's Sabarmati Riverfront up to GIFT City is progressing at full pace.
Recalling the transformation of the area, the Chief Minister noted: "The location once consisted mainly of farms and the ravines of the Sabarmati river, whereas it now had world-class financial institutions."
He described the construction and development of GIFT City as an example of PM Modi's approach of "thinking ahead of the present and translating that vision into reality".
— IANS
Reader Comments
The 20-year tax holiday is a game changer for investors. This kind of long-term stability is what we need to attract global capital. Kudos to the government for thinking ahead!
Good to see focus on AI and fintech. But I hope we also remember to spend on basic infrastructure in smaller towns. Development shouldn't be only about big cities.
GIFT City's transformation from farmland to a world-class financial hub is truly inspiring. The metro connectivity and riverfront extension will make it even more accessible. Great to see Green bonds and climate finance being prioritised too! 🌱
The bullion exchange and aircraft leasing are niche sectors that most Indian cities haven't even explored. GIFT City is definitely thinking out of the box. However, I'd like to see more clarity on how local businesses and start-ups can benefit from these initiatives.
This is what visionary leadership looks like! From ravines to financial hub - incredible journey. PM Modi's vision plus Gujarat's execution is a winning combo. The AI Centre of Excellence will put India on the global tech map. 🚀
Happy to see progress but let's not forget about the 'ease of doing business' on the ground. Paperwork and clearances
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