GIFT City Targets Global Capability Centres for Next Expansion Phase, Says CEO Kaul at Davos

GIFT City is strategically repositioning itself to capture the growing demand for global capability centres (GCCs) and centres of excellence, marking a significant shift beyond its traditional focus on banking and asset management services. Managing Director and Group CEO Sanjay Kaul outlined this expansion strategy during the World Economic Forum in Davos, emphasizing that the International Financial Services Centre has moved well past the exploratory phase into concrete business commitments.

Strategic Shift Towards Global Capability Centres

The emergence of GCCs as a priority represents a notable evolution in GIFT City's growth trajectory. Kaul highlighted that this interest has developed over the past six to eight months, driven primarily by companies with existing manufacturing operations in India seeking cost-effective locations for their global support functions. The strategic focus aligns with Gujarat's robust manufacturing ecosystem, creating synergies between industrial operations and back-office capabilities.

Growing International Interest and Bilateral Agreements

The announcement of DP World and Abu Dhabi Bank exploring presence in GIFT City coincides with high-level bilateral meetings, reflecting broader international confidence in the platform. Kaul noted that bilateral trade agreements, including ongoing negotiations such as the India-EU free trade agreement, play a critical role in accelerating foreign investment decisions by reducing uncertainty and providing clearer economic frameworks.

The surge in inquiries following GIFT City's Davos participation announcement demonstrates the scale and seriousness of global interest. Companies are now actively evaluating opportunities within the International Financial Services Centre, moving beyond initial curiosity to substantive business planning.

Asset Management and Aviation Finance Momentum

While GCCs represent the newest growth driver, traditional financial services continue to expand robustly. The asset management sector shows particular strength with 194 entities currently registered or operating, and several major global players in advanced discussions for upcoming launches. Kaul declined to name specific entities but confirmed ongoing conversations with prominent international firms.

Aviation finance has emerged as another success story, with over 400 aircraft leased through GIFT City entities. This segment demonstrates the centre's capability to serve specialized financial services beyond conventional banking and investment management.

Operational Cost Advantages Drive Adoption

The compelling value proposition for GCCs lies in significant operational cost advantages compared to other locations. Kaul emphasized that detailed analysis reveals substantially lower operational expenses for companies establishing global capability centres in GIFT City. This cost efficiency, combined with the regulatory framework and infrastructure quality, creates a competitive advantage that companies recognize during evaluation processes.

Infrastructure and Talent Development Initiatives

To support the ambitious expansion plans, GIFT City is implementing comprehensive improvements in social infrastructure and talent availability. The focus on enhancing the talent pool includes upgrading qualifications and improving employability standards to meet the sophisticated requirements of global capability centres and innovation hubs.

The target of reaching 100,000 employees by 2030 represents nearly a four-fold increase from current levels, requiring substantial investments in both physical infrastructure and human capital development. This expansion will be driven primarily by the establishment of GCCs, GICs, and centres of excellence, positioning GIFT City as a major hub for global business operations in India.