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In 2008, a Singapore-like Smart City — GIFT City was envisioned in Gujarat India 15 years in, everyone thinks it's a failure & a complete waste of money
But to their surprise, GIFT City did 12000 crore worth of exports last year alone!
Here's how GIFT City is building India:
GIFT City is a Special Economic Zone (SEZ) and a flagbearer for the upcoming smart cities in India.
It aims to create a Global Financial Center (GFC)- like NYC, London, Hong Kong and Singapore- in our country.
👉 that will optimize the Indian financial sector and
👉 foster international financial services, technology, & innovation.
These GFCs are the cities (or regions) that allow the host economies to create an atmosphere — for accelerated growth and development by creating a robust financial ecosystem.
The network Effect is a phenomenon in which the value of a product, platform or service increases as more people use/adopt it.
This effect is created by bringing a large group of people or organizations together- towards our products or platforms.And the notion- as simple as this- is now building and strengthening our Global Financial Centers, including GIFT City.
It's okay if you're still not sure what we're talking about.
Just stay with us and understand how the development of GIFT City is being benefited by the Network Effect.
The concentration of financial institutions such as
💸 banks
💸 asset management firms
💸 insurance co.s in a particular location, attracts other institutions to follow.
The existence of multiple institutions amplifies the overall strength of the centre by fostering collaboration, information sharing, and knowledge transfer.
2. Cross-border integration
The reputation of a GFC in front of the rest of the world enables international transactions, capital flow and market consolidation.
Strong network effect due to higher global reach attracts more offshore businesses, investors and partnerships.
3. Regulatory Environment
GIFT City provides a business-friendly regulatory framework where authorities provide a range of incentives, simplified regulations
and tax benefits to captivate domestic and international co.s
This creates a positive network effect where supportive policies encourage more financial institutions to set up operations in GIFT City.
This will position GIFT City as a competitive player in the global financial landscape.
4. Connectivity and Digital Infrastructure
State-of-the-art infrastructure and world class connectivity support the day-to-day operations of multiple businesses.Modern office spaces, high-speed internet connectivity and appealing IoT infrastructure attracts
— more and more businesses, entrepreneurs, and technology providers who can leverage these amenities and develop further innovative solutions.
5 Talented and Skilled Workforce
World-class amenities are quite appealing to the skilled workforce with expertise in finance, technology, and related fields.
Moreover, the city is collaborating with various renowned educational institutions and professional organisations to offer specialized training programs
that cater to the needs of the financial industry. This will further enhance the growth prospects among the workforce and will create a self-reinforcing cycle.
6. Collaboration and Stakeholder Engagement
GIFT City is fostering collaborations and engagements among govt agencies, private firms, research institutions, community organizations as well as citizens.
But with their joint efforts, the city will leverage their collective intelligence, expertise, and resources.
The network effect of collaboration amplifies the impact and effectiveness of initiatives within the smart city ecosystem.We also need to acknowledge that the models of smart cities- based on network effect- are adaptable because of their scalability and replicability.
It means that more cities in India, facing similar issues can accelerate their growth by harnessing network effects.And as the effect strengthens, it attracts more participants, fosters collaboration and inspires innovation.
