How GIFT City Serves as a Model for Smart Cities Across India & Gujarat

Gujarat International Finance Tec-City, widely known as GIFT City, is India’s first greenfield smart city and International Financial Services Centre (IFSC). Located between Ahmedabad and Gandhinagar, GIFT City is a futuristic model of urban infrastructure, technology, governance, and sustainability. As India continues its urbanisation journey under the Smart Cities Mission, GIFT City stands out as a benchmark for smart, sustainable, and inclusive development.

Vision & Core Objectives

1. Global Financial Centre
   GIFT City was conceptualised to rival leading financial hubs like Singapore, Dubai, and London. It houses financial institutions, international exchanges, and fintech firms within the IFSC framework.

2. Smart, Sustainable Urbanism
   It incorporates advanced systems such as underground utility tunnels, district cooling, automated waste collection, and LEED-certified buildings.

3. Integrated Urban Design
   A ‘walk-to-work’ model reduces traffic congestion, improves productivity, and enhances livability through compact and connected planning.

4. Technology-Driven Governance
   A centralized Command & Control Centre uses IoT, AI, and real-time data to manage utilities, security, and civic infrastructure.

5. International Collaboration
   Through the IGLUS Centre of Excellence (ICE) and partnerships with institutions like EPFL (Switzerland), GIFT City facilitates global knowledge exchange in urban management.

Gujarat’s Role in Urban Innovation

Gujarat is already a leader in smart urban development. GIFT City is part of a broader strategy that includes:

1. Ahmedabad BRTS: India's first full-fledged Bus Rapid Transit System.

2. Surat Smart City: Known for effective implementation of ICT-based governance.

3. Dholera Special Investment Region (SIR): A massive greenfield smart city under the Delhi-Mumbai Industrial Corridor.

GIFT City complements these by serving as Gujarat’s financial and tech nucleus.

Key Features of GIFT City

1. Smart Infrastructure

• Underground Utility Tunnel: A unique feature in India, it houses electricity, water, gas, and telecom lines in a single service corridor.

• District Cooling System (DCS): Centralized air conditioning reduces energy consumption by 30–40%.

• Automated Waste Collection: Pneumatic waste disposal minimizes manual handling and supports hygiene.

2. Sustainability Practices

• Green Buildings: All structures follow LEED and IGBC certification protocols.

• Rainwater Harvesting & Recycling: 100% wastewater is treated and reused.

• Zero Discharge City: No untreated water is released into the environment.

3. Smart Mobility

• Walk-to-Work: Commercial and residential areas are planned within walkable distances.

• Integrated Public Transit: Proposed metro connectivity, electric shuttle buses, and bicycle tracks.

4. Digital Governance

• City Command Centre: Central hub for managing energy, water, traffic, and safety.

• E-Services: Paperless administration for licenses, tax payments, and property management.

Economic and Social Impact

1. Financial Hub: GIFT City hosts over 23 banks, stock exchanges (BSE & NSE IFSC), insurance companies, and capital market players.

2. Bullion Exchange: India’s first International Bullion Exchange (IIBX) is located here.

3. Global Capability Centres (GCCs): MNCs like Infineon and others are setting up IT and R&D units.

4. Job Creation: More than 12,000 jobs have already been created, with a target of over 100,000.

5. Real Estate Boom: Residential prices in GIFT City have nearly doubled in the last 5 years.

Limitations & Challenges

1. Connectivity Bottlenecks: While connectivity is improving, public transport to and from Ahmedabad and Gandhinagar still needs enhancements.

2. Livability Concerns: Limited nightlife, cultural venues, and social spaces make it less attractive to some residents.

3. Inclusive Growth: Critics warn that smart cities like GIFT may widen gaps between urban elites and underserved populations if not inclusively planned.

Why GIFT City Is a Model for Smart Cities in India

GIFT City Demonstrates:

1. Planned Urban Development: Integration of housing, commercial areas, and infrastructure from the ground up.

2. Smart Infrastructure Deployment: First city in India with underground utilities and district cooling.

3. Efficient Governance: Command Centre and tech-driven solutions improve response time and service quality.

4. Financial Innovation: Through IFSC and IIBX, it has created a financial ecosystem that’s globally competitive.

5. Replicability: Its success shows how cities can be sustainably built using digital tools and robust policies.

As India pushes forward with over 100 smart city projects, GIFT City serves as a proven pilot with real-world implementation experience.

Final Thoughts

GIFT City is more than just an urban project—it's a strategic vision for India’s urban future. Gujarat’s success with this initiative provides both proof of concept and a scalable blueprint for other Indian states to follow. As cities across the country grapple with outdated infrastructure, climate challenges, and population stress, GIFT City serves as a guiding light on how to build inclusive, sustainable, and smart urban spaces from the ground up.

In case of any query regarding How GIFT City Serves as a Model for Smart Cities Across India & Gujarat, feel free to connect with our legal experts, Tulja Legal, at +91 96380-69905

About the Author

Anju S Nair

Legal Researcher | LLB, MA English| Corporate Lawyer | Business Enthusiast | Founder & CEO at iLawbook.

FAQs

1. What is GIFT City?
GIFT City is India’s first greenfield smart city and IFSC located in Gandhinagar, Gujarat, developed to serve as a global financial and technological hub.

2. Who developed GIFT City?
It is jointly developed by the Government of Gujarat and Infrastructure Leasing & Financial Services (IL&FS), currently managed by Gujarat Urban Development Company.

3. What is an IFSC?
An International Financial Services Centre provides financial services to non-residents and residents in foreign currency, facilitating global business.

4. What industries operate in GIFT City?
Banking, insurance, capital markets, fintech, bullion trading, aircraft leasing, and IT services are major sectors.

5. Is GIFT City only for finance professionals?
No, it also includes residential areas, schools, hospitals, malls, and green spaces—designed as a full-fledged city.

6. What makes it 'smart'?
Features like underground utility tunnels, smart grids, IoT-based waste management, and AI-governed traffic systems make it a true smart city.

7. How is sustainability achieved in GIFT City?
Through district cooling, rainwater harvesting, energy-efficient buildings, and waste recycling.

8. Are there job opportunities in GIFT City?
Yes, over 200 companies are already operational with thousands of employment opportunities in finance, tech, and services.

9. How is it connected to the rest of Gujarat?
Proposed metro lines and BRTS will link GIFT with Ahmedabad and Gandhinagar, with existing road connectivity already in place.

10. Can GIFT City’s model be replicated in other parts of India?
Yes, its integrated planning, sustainability, and digital governance offer a replicable framework for upcoming smart cities.

References

1. GIFT City Official Website – https://giftsez.com

2. Smart Cities Mission – Government of India – https://smartcities.gov.in

3. “India’s first smart city” – Economic Times, 2024

4. “Why GIFT City is Attracting Investors” – Business Today, March 2025

5. “Gujarat’s Smart Cities: A Comparative Analysis” – NITI Aayog Working Paper, 2023

6. “Smart Infrastructure in GIFT City” – Hindustan Times, November 2024

7. “Bullion Exchange and IFSC Explained” – Mint, August 2024

8. “Urban Sustainability in GIFT City” – Centre for Policy Research (CPR), 2023

9. “Global Financial Centres Index – GFCI 35” – Z/Yen, 2025

10. “Dholera and GIFT: Gujarat’s Twin Smart Cities” – The Hindu, 2024

11. Infineon, Capgemini announce GCCs in GIFT – Times of India, April 2025

12. “Command and Control Centers in Smart Cities” – World Bank Smart Governance Report, 2023

13. "Gujarat's IT/ITeS Policy 2022–2027" – Government of Gujarat