Gujarats decision to permit liquor consumption in the new financial hub, Gujarat International Finance Tec-City (GIFT) City, marks a significant departure from its long-standing policy of prohibition, in place since 1960. This move, while controversial, stems from a confluence of factors:The exemption came as first in Gujarat which is a dry state since its formation, 1960.GIFT, which is renowned for being a tax-neutral financial hub, is now prepared to compete by offering more flexible regulations and fiscal incentives with global hubs like Singapore.The governments plan to transform GIFT into a cutting-edge hub for financial services and technology includes the decision to relax alcohol prohibitions within the facility. The citys goal for the future embraces innovation and sustainability, transforming it into a hub that extends beyond traditional financial services.By allowing liquor in the new city, the state is trying to boost the competitiveness in GIFT City. Meanwhile, Narcotics and Excise Department said that keeping the governments vision for the centre in mind, the prohibition restrictions have been changed to wine and dine.Impact of the stepAttract International Talent: Global financial hubs like Singapore and Dubai offer wine and dine culture, which Gujarat recognised as important for attracting and retaining top talent from across the world.Create a Global Business Ecosystem: The government aims to make GIFT City an internationally competitive environment, where regulations resemble those of other financial centres. Offering liquor access caters to the lifestyles and expectations of international professionals.Facilitate Business Interactions: Social evenings and networking events involving alcohol are common in the business world. Gujarat believes the availability of such opportunities in GIFT City will bolster business dealings and partnerships.Pragmatic ConsiderationsSpecial Economic Zone Status:GIFT City functions as a Special Economic Zone (SEZ) with independent regulations. This allowed the government to carve out an exception to the statewide prohibition within its boundaries.Limited Scope: The relaxation only applies to licensed hotels, restaurants, and clubs within GIFT City. Liquor sale is prohibited, and consumption is restricted to those with permits (employees, authorised visitors).Revenue Generation: Permit fees and taxes on liquor sales within GIFT City could generate additional revenue for the government.Despite the stated rationale, the decision has met with opposition from various sections. However, the success of this experiment will depend on several factors, including its impact on attracting talent and investments, efficient regulation to prevent misuse, and addressing public concerns about potential social consequences. With the Wine and Dine facility, the GIFT city will try to attract the global organisations to India.
