When Gujarat made the unprecedented decision to lift prohibition laws within GIFT City on New Year's Eve 2023, it marked a historic shift for a state that had maintained dry laws since 1960. The creation of legal drinking spaces within India's first international financial services center represented a bold experiment in balancing traditional values with global business needs.
The Controlled Drinking Ecosystem
Two years into this social experiment, the results show measured progress rather than explosive growth. Official statistics reveal that 985 permanent employees have obtained liquor access permits, while 5,291 temporary permits have been issued to visitors. The total liquor sales volume stands at 5,552 bulk litres - a modest figure that reflects the carefully controlled nature of this initiative.
Within GIFT City's boundaries, every alcoholic drink comes with extensive documentation. Only employees of registered firms can consume alcohol, and only after securing a two-year access permit renewable for ₹1,000 annually. Visitors require one-day temporary permits issued by authorized officers, and each permit holder can host up to five guests at licensed 'wine and dine' zones.
The system maintains strict controls: all consumption must occur within designated areas, every guest's name is registered before service, and all bills are traceable. Even residents of Ahmedabad can participate if the meeting is business-related. Crucially, those who drink cannot drive and must arrange for designated drivers.
Business Impact and Growing Acceptance
The policy change has generated significant positive momentum for GIFT City's development. Taral Shah, a developer working on projects in the area, noted that real estate enquiries jumped by 25-30% following the liquor norm relaxation. Companies from Delhi, Mumbai, and Bengaluru have shown increased interest in establishing bases within the financial hub.
Currently, two wine-and-dine facilities serve the zone, with more planned as new commercial towers and hotels become operational. An official at one licensed facility reported that 15 people visit on average weekdays, with numbers doubling to around 30 on weekends. The demographic breakdown shows 15% foreign visitors and 85% Indian professionals, primarily aged between 26 and 45 years.
Dhruv Singh, a professional working at GIFT City, commented that the relaxation has successfully created a lifestyle matching international standards. The convenience of obtaining access permits and the growing social scene has encouraged more employees to stay back after work for informal networking.
Corporate Caution and Future Potential
Despite the generally positive reception, some companies remain cautious. Tanya Sharma from an MNC at GIFT-IFSC explained that her organization consciously avoids issuing permission letters for employees to access drinking facilities, concerned about potential reputation risks in a state where prohibition remains the norm outside GIFT City.
Industry leaders see broader potential beyond the current experiment. Narendra Somani, president of the Hotels and Restaurants' Association in Gujarat, argues that two years of regulated liquor access demonstrates how controlled liberalization can build a wine-and-dine culture while generating state revenue. He suggests extending such relaxations across Gujarat, especially with growing foreign investment and the state's successful bids for major international sporting events.
Sanjay Kaul, IAS, MD and group CEO of GIFT City, emphasized that the streamlined prohibition norms have been widely welcomed by companies and professionals as reflecting the city's global readiness. The policy has helped address previous challenges in attracting young talent, particularly from sectors like semiconductor design, where companies previously preferred Bengaluru or Hyderabad.
As GIFT City expands with new corporate tenants and residential projects, the fundamental question remains whether Gujarat will replicate this controlled drinking model elsewhere or maintain it as a unique concession within India's global financial hub. For now, each glass raised within GIFT City represents both a social moment and a data point in one of India's most closely watched policy experiments.
