The Gujarat government has introduced a significant relaxation in its liquor policy for GIFT City in Gandhinagar, aiming to enhance ease of access and stimulate further economic activity in the region. Under the new guidelines, individuals employed within GIFT City can now directly approach designated government authorities to obtain temporary or group liquor permits, bypassing the earlier requirement of getting a recommendation from their employer’s representative.
This move, formalized through an April 15 notification by the state’s home department, is expected to reduce paperwork and simplify the process for employees seeking liquor access within GIFT City. Stakeholders in the real estate and investment sectors have responded positively, noting that the revised policy would contribute to creating a more dynamic and investor-friendly environment.
Located along the Sabarmati River between Ahmedabad and Gandhinagar, Gujarat International Finance Tec-City (GIFT City) spans 880 acres and comprises both SEZ and non-SEZ zones. The SEZ is primarily occupied by financial institutions and banks, while the non-SEZ area features a mix of commercial and residential developments. Currently, around 35% of the area is operational, with further development underway.
Given Gujarat’s longstanding prohibition on alcohol, in effect for more than sixty years, the liquor policy for GIFT City marks a major departure. In 2023, the state had unveiled a tailored liquor policy for GIFT City, allowing employees and their official guests to consume alcohol at licensed venues such as hotels, clubs, and restaurants, provided they held valid permits. However, consumption remains confined to designated areas within the city.
The latest changes eliminate the bureaucratic step of employer endorsements, making it easier for professionals to access permits valid for up to two years.
Industry leaders have pointed to the liquor policy relaxation as a contributing factor to GIFT City’s growing appeal. Shekhar Patel, the newly appointed national president of real estate developers' association CREDAI, acknowledged that the change had helped attract more companies, even if its exact impact was difficult to quantify. He emphasized that while the policy shift was important, it was one of several elements driving growth in the area.
Similarly, Viral Shah, a CREDAI Ahmedabad vice president and property developer, noted that the announcement of policy relaxation in 2023 coincided with a noticeable rise in real estate interest. He mentioned that property prices had increased by approximately Rs 500 per square foot in the month following the update and observed a clear surge in demand. However, he cautioned against attributing all growth to the liquor policy alone, instead suggesting it was part of a broader ecosystem that was becoming more conducive to business.
Major corporations such as JP Morgan, Morgan Stanley, IBM, Oracle, Infosys, Google, and LIC have already established a presence in GIFT City. On the real estate front, developers including Sobha, Brigade Group, Hiranandani, Shivalik, and Nila Spaces are active in the area.
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