Dry state Gujarat will let workers, visitors consume liquor in GIFT City

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The Gujarat government announced on December 22 that both Gift City workers and visitors will be allowed to consume liquor in Gujarat International Finance Tec-City (GIFT City). Both the people working in GIFT CITY and authorised visitors will be given liquor permits by the concerned authorities.

The otherwise dry state will allow the consumption of liquor in hotels, restaurants, and clubs offering wine and dine in GIFT City. While patrons can enjoy alcoholic beverages on the premises of hotels, clubs, and restaurants in GIFT City, the sale of liquor bottles by these establishments is strictly prohibited.

Gujarat has had strict laws governing the sale and consumption of alcohol for a long time. The sale of alcoholic beverages to the general public is forbidden under state law. This strategy is in line with the historical perspective of the state and the ideals of Mahatma Gandhi who was born in Gujarat.

The City

GIFT-IFSC is a tax-neutral financial centre that aims to compete with hubs like Singapore as it provides fiscal incentives and a looser regulatory environment. PM Modi recently said India wants to expand the role of GIFT City to make it a new age financial services and technology nerve centre.

The financial hub nestled between Gujarat's financial capital Ahmedabad and political capital Gandhinagar, has emerged as India’s first operational smart city. It is home to a plethora of Indian and foreign financial institutions including State Bank of India, HDFC Bank, Standard Chartered, Kotak Mahindra Bank, and India’s first international bullion exchange.

A 20-minute drive from Ahmedabad’s international airport, Gujarat International Finance Tec-City, or GIFT City, is spread over 880 acres. There are two international stock exchanges, a bullion exchange and 23 international banking units with a cumulative asset size of $35.84 billion.

About 20,000 people commute to work at GIFT City every day, with electric buses to ferry them around. The hub is bustling now more than it did in the first few years after it was set up. Oldtimers say it has grown tremendously in the past five years.

Ahmedabad-based Infibeam, which employs about 650 employees globally, was among the first lot of companies to bet on the new financial hub.

GIFT City was conceptualised and announced in 2008, when Modi was the chief minister of Gujarat and when fintech was barely heard of. The vision was to develop this strategically located area into a hub for global financial trade and business – bypassing tedious compliance norms and red tape.

The objective was to become an alternative to Dubai or Singapore.

The business segments targeted included capital markets, offshore banking, offshore asset management, offshore insurance, IT services, ITeS/BPO services and ancillary services such as legal, accounting, research and analytics.

The International Financial Services Centre, which caters to overseas customers dealing with finance, financial products and services across borders, was started in 2015.

The City, located on the banks of the Sabarmati River, is developing residential complexes and cultural centres. The riverfront is slated for a facelift with cafes and restaurants. Foreign universities are in advanced talks to open local campuses, which could transform the culture of GIFT City.

The bullion exchange at GIFT City was set up in 2020. Seventy-five jewellers that meet the criteria specified by the regulator have been issued certification to import gold directly on the exchange. The number is likely to go up to 110 shortly.