Gujarat has set aside 39 per cent of its total annual budget for capital expenditure, Chief Minister Bhupendra Patel announced on Tuesday, 11 August, underscoring the state's strategic pivot toward infrastructure, advanced technology, and emerging financial sectors. The disclosure came as GIFT City — Gujarat International Finance Tec-City — continues to cement its position as India's primary international financial hub.

Key Developments at Global Connect GIFT City Edition

Patel made the announcement while addressing the inaugural session of the Global Connect GIFT City Edition, a joint event organised by HSBC and NDTV at GIFT City in Gandhinagar. He said the capital expenditure allocation reflects the state's focus on semiconductors, data centres, and artificial intelligence (AI), sectors that the government views as critical to long-term economic competitiveness.

GIFT City's Expanding Financial Footprint

The Chief Minister described GIFT City as a 'powerful instrument' for globalising India's financial sector. He noted that the city — the country's first Financial Tech City — is now active across banking, insurance, asset management, capital market services, fund management, fintech, aircraft leasing, and ship leasing.

Patel also highlighted the role of the International Financial Services Centre Authority (IFSCA) — India's only such regulatory body — and the bullion exchange operating within GIFT City as fresh catalysts for the financial sector's development. He added that the city's AI Centre of Excellence has emerged as a platform for connecting start-ups, experts, and businesses around new solutions in banking, risk management, and wealth management.

Union Budget Incentives and the 20-Year Tax Holiday

A significant policy boost has come from the Union Budget, which introduced a continuous 20-year tax holiday for businesses operating from GIFT City — doubling the earlier 10-year period. Patel said this extended window would give investors greater confidence and long-term flexibility, making GIFT City a more attractive destination for global capital.

He also pointed to GIFT City's growing role in green bonds, sustainable financing, climate finance, and renewable energy financing as part of a broader alignment with the Centre's 'green growth' agenda.

Infrastructure and Connectivity Push

Beyond finance, Patel stressed improvements to physical infrastructure within and around GIFT City. Metro connectivity has been extended to ease commuting for residents and professionals. Work to extend Ahmedabad's Sabarmati Riverfront up to GIFT City is reportedly progressing at full pace, further integrating the financial district with the broader urban fabric.

Recalling the area's transformation, Patel noted that the location once consisted mainly of farmland and the ravines of the Sabarmati river and now hosts world-class financial institutions. He described GIFT City's development as an example of 'thinking ahead of the present and translating that vision into reality.'

With the 20-year tax holiday in place and infrastructure investment accelerating, GIFT City's next phase of growth will hinge on whether global financial institutions deepen their commitments beyond registrations to active operations.