Special Economic Zones (SEZs) aim to attract Foreign Direct Investment (FDI) and improve the economy by exporting products and services and finding market globally. They are specifically defined areas where units may be set up for specified purposes of manufacturing or trading or rendering services or providing warehousing facility for export. SEZs are treated as a foreign territory for the purposes of trade operations, duties and tariffs, i.e., goods and services going into SEZ are treated as exports and goods and services coming from the SEZ as imports. SEZs provide easy access to global trading hubs that facilitates the flow of capital, movement of goods and economies of scale, all of which are critical for success of an SEZ.
They offer well-developed areas of infrastructure with built up space, power, water supply, transport, housing etc. including physical and social infrastructure facilities.
They are expected to benefit the economy in multiple ways like
- Generation of additional economic activity.
- Promotion of export of goods and services.
- Promotion of investment, both foreign and domestic.
- Creation of employment.
- Development of infrastructure.
To attract FDI and overcome the shortcomings experienced in terms of governance, infrastructure, etc., in the Year 2000, Ministry of Commerce and Industries announced the SEZ policy. After this, in Year 2005, the Government passed the SEZ Act, 2005 supported by SEZ Rules, 2006. It envisages key role for the State Governments in Export Promotion and creation of related infrastructure and a simplified approval mechanism through constitution of Board of approval.
GIFT is conceptualized as a global Financial and IT Services hub, a first of its kind in India, designed to be at or above par with globally benchmarked financial centres such as Shinjuku, Tokyo, Lujiazui, Shanghai, La Defense, Paris, London Dockyards etc. GIFT Master Plan facilitates Multi Services SEZ with IFSC (International Financial Services Centre) status, Domestic Finance Centre and associated Social infrastructure.
“GIFT SEZ Limited” has been formed by GIFTCL for development of Multi Services SEZ at Gandhinagar with the prime focus on development of IFSC and allied activities in SEZ. It is pertinent to note that the primary focus of the Multi Services SEZ will be on financial services. The core objectives of developing IFSC in GIFT Multi Services SEZ are as under-
- To realize the vision of the Government of India to emerge as a major economic power by facilitating development of strong base of International Financial Services in the country.
- Facilitate the implementation of the Government’s strategy for the development of a financial hub in the South Asian sub-continent.
- Position the IFSC as a world-class zone for the long-term provision of office/service accommodation and high technological, economical and commercial infrastructure.
GIFT SEZ is being an integral part of GIFT Area, the design concept of GIFT Area incorporates the integration of GIFT SEZ Area with rest of the domestic area within GIFT. GIFT SEZ is divided into well defined Processing & Non-Processing areas with emphasis on integrated development such as limited residential & recreational facilities to make the area lively 24 x 7.
Multi Service SEZ - Processing Area & Non-Processing Area
| PROCESSING AREA | NON-PROCESSING AREA |
|---|
| International Financial Service Centre (IFSC) |
Related Commercial and Office Buildings |
| International Techno Park & International Market Zone |
Service Apartments & Residential Flats |
| Commodity Exchanges |
Hostels and Restaurants and Food Court |
| Global trading exchanges |
Business Hotel, Shopping Centre, Retail Stores and Banks |
| Insurance |
Training center for Financial Services |
| Offshore Banking |
Medical Centre |
| IT/ ITeS |
Entertainment Centre/ Theatre |
| KPO/ BPO services |
Post Office, Telephone Exchange, Police Station, Security, etc. |
| Data Centre |
Regulators Offices |
BUILT-UP AREA
GIFT SEZ has been planned based on high density development considering the land as a scarce resource. The Global Floor Space Index (F.S.I.) of 3.65 for the entire GIFT Area to achieve the envisaged density as part of the overall approval and development of GIFT Area.
GIFT SEZ Limited, a company incorporated under the laws of India and having its registered office at Zonal Facility Centre, Block-12, Road – 1-D, Zone – 1, Gandhinagar – 382355, Gujarat, India (hereinafter referred to as “GIFT IFSC”) is a wholly owned subsidiary of GIFTCL and is responsible for development of Special Economic Zone with International Financial Services Centre (IFSC).
GIFT SEZ is India’s first International Financial Services Centre (IFSC) under Special Economic Zone Act, 2005 (“SEZ Act 2005”). It is being developed as a global financial and information technology services hub.