First Time in Gujarat: GIFT City Liquor Permit Explained – How It Transforms Lifestyle & Investment Opportunities (2026 Guide)
Gujarat International Finance Tec-City (GIFT City), India’s premier smart city and International Financial Services Centre (IFSC), has made headlines with its progressive policies. While Gujarat has been a “dry state” since 1960, prohibiting alcohol under the Gujarat Prohibition Act of 1949, GIFT City operates as a special economic zone with exemptions to align with global standards. The introduction of liquor access in GIFT City marks a historic first for Gujarat, aimed at enhancing its appeal as a world-class financial hub.
AI, IT and yes, booze too: Gujarat’s big GIFT City push …
Initially relaxed in December 2023, the rules allowed controlled liquor consumption in designated areas for officials and visitors. However, a major update via a gazette notification on December 20, 2025, further simplified access, scrapping temporary permits for non-residents and expanding service areas. As of January 2026, these changes have boosted hospitality, drawn more international talent, and positively impacted real estate investments in the area.
This guide breaks down everything you need to know about the liquor permit system in GIFT City in simple, point-by-point format—perfect for professionals, students, investors, or anyone curious about this development.
History of Liquor Relaxation in GIFT City
- Gujarat’s Dry State Legacy: Alcohol has been banned statewide since 1960, rooted in Gandhian principles. Violations can lead to fines or imprisonment.
- Initial Exemption (December 2023): To make GIFT City competitive with global hubs like Dubai or Singapore, the government allowed liquor in hotels, clubs, and restaurants for GIFT City employees, officials, and visitors—but only with temporary permits.
- April 2025 Tweaks: Minor expansions to service areas and procedures.
- Major 2025 Update (December 20, 2025 Gazette): Eliminated temporary permits for non-residents, simplified employee access, and broadened consumption zones. This is seen as the “first time” Gujarat has truly opened up liquor access in a controlled, modern way to foster economic growth.
Eligibility for Liquor Access in GIFT City
- Non-Resident Visitors (from outside Gujarat): Indian citizens from other states can consume liquor without any permit—simply show a valid government-issued photo ID (e.g., Aadhaar, PAN, Voter ID).
- Foreign Nationals: International visitors qualify with a valid passport or equivalent photo ID; no additional permits needed.
- GIFT City Employees: Must hold a Liquor Access Permit to consume or host guests. This includes professionals working in IFSC units, banks, tech firms, etc.
- Permit Holders’ Guests: Employees with permits can host up to 25 guests at a time under temporary permissions, provided they accompany them.
- Diners Without Permits: Can access wine-and-dine areas for food, even if not consuming alcohol.
Application Process for Liquor Permits
- For Visitors (Non-Residents and Foreigners): No application required. Just present your photo ID at the venue for immediate access.
- For GIFT City Employees: Simplified process—submit Form A1 directly with your employee ID card. No HR approval needed anymore, making it quicker and easier.
- Where to Apply: Through designated GIFT City authorities or licensed establishments. Processing is straightforward and typically fast.
- Cost and Validity: Permits are affordable (details vary but often nominal fees); they are renewable and tied to employment status.
Locations and Allowed Areas for Consumption
- Designated Venues: Liquor is available only at licensed hotels, restaurants, and clubs within GIFT City boundaries. Examples include premium spots like Grand Mercure and upcoming celebrity-backed restaurants.
- Expanded Areas: Beyond traditional dining zones, consumption is now allowed in flexible spaces like lawns, terraces, poolside areas, and promenades—provided the venue has an official permit.
- Timings and Rules: Service follows standard hospitality hours (typically evenings); responsible consumption is emphasized, with strict enforcement against misuse.
Key Highlights and Benefits
- Global Appeal: Aligns GIFT City with international norms, attracting more foreign investments, tourists, and professionals. Over 1,000 entities already operate here, with billions in assets.
- Hospitality Boost: Encourages high-end restaurants and hotels, like Shilpa Shetty’s Bastian chain, enhancing dining options.
- Economic Impact: Expected to increase footfall, create jobs in hospitality, and drive property demand—residential prices have risen 22% YoY.
- Lifestyle Enhancement: For residents and workers, it promotes a cosmopolitan “live-work-play” vibe, improving work-life balance without compromising Gujarat’s overall prohibition.
- Investment Angle: Higher appeal leads to better rental yields (8-12%) and capital appreciation in GIFT City real estate—ideal for investors eyeing commercial offices or luxury homes.
Restrictions and Important Notes
- Geographical Limits: Rules apply strictly within GIFT City; carrying or consuming alcohol outside is illegal and punishable.
- No Manufacturing or Sales: Liquor cannot be produced, sold, or taken away—only on-premise consumption at licensed spots.
- Age and Conduct: Must be 21+; venues enforce responsible drinking policies.
- Statewide Prohibition: Gujarat remains dry elsewhere; the slowdown in statewide health permits (only 1% growth in 2025) reflects GIFT City’s influence.
These changes position GIFT City as a forward-thinking hub, blending economic ambition with modern amenities. For professionals relocating, students exploring opportunities, or investors seeking high returns, this adds significant value.
Partner with GJ Profits for GIFT City Insights
At GJ Profits, we help you navigate GIFT City’s real estate and lifestyle perks, including how these updates enhance investment potential. Whether buying a residential flat or commercial space, our Ahmedabad-based team offers tailored advice.
Contact us today for personalized consultations and the latest opportunities.
