Uday Kotak Named Chairman of GIFT City by Gujarat Government

The Gujarat government has appointed Uday Suresh Kotak, a well-known banker and industrialist, as the new Chairman of Gujarat International Finance Tec-City Co. Ltd. (GIFT City). The announcement was made through an official notification by the Urban Development and Urban Housing Department and was reported by ANI.

Kotak will replace Hasmukh Adhia, who had been serving as the Non-Executive Chairman of GIFT City since June 19, 2023.

According to the government’s statement, Uday Kotak’s appointment will take effect immediately and he will continue in the role until further orders are issued.

However, the government has not yet shared details about his responsibilities, salary, or other terms of appointment. These are expected to be decided and announced at a later stage.

What Does GIFT City Mean?

Gujarat International Finance Tec-City Co. Ltd. (GIFT City), located in Gujarat, is India’s first working smart city and the country’s only International Financial Services Centre (IFSC). It has been developed as a modern business hub for financial and technology companies from India and across the world.

GIFT City provides both domestic (onshore) and international (offshore) financial services. Its main goal is to offer cross-border financial products and services within a competitive tax system.

With easier tax policies and simpler regulations, GIFT City aims to attract global investors and compete with leading international financial centres like Singapore and Dubai.

Earlier this month, Nirmala Sitharaman announced that the government has extended tax benefits for companies operating from the IFSC in Gujarat. The tax holiday period has been doubled, and the tax rate after the exemption period has also been reduced.

This move is expected to provide major relief and greater tax clarity to businesses working from the global financial hub, making it more attractive for companies and investors.

Companies operating in the IFSC can now enjoy tax-free benefits for up to 20 years, compared to the earlier limit of 10 years. After the tax holiday ends, they will have to pay a 15% tax on profits, which is much lower than the previous rate of 25–35%, according to Mint.

Who is Uday Kotak?

Uday Suresh Kotak is the founder and director of Kotak Mahindra Bank. He has played a key role in building the bank into one of India’s leading private sector lenders over the past 38 years.

He earlier served as the Managing Director and CEO of the bank until September 1, 2023. From September 2, 2023, he took on the role of Non-Executive Non-Independent Director at the bank.

Under the leadership of Uday Suresh Kotak, the Kotak Mahindra Group has grown into one of India’s top diversified financial services groups.

Over the years, the group has expanded beyond banking into several areas such as alternative investments, asset management, insurance, and other financial services. Today, it operates as a well-integrated financial services company offering a wide range of products to individuals and businesses.