The latest move removes one of the key friction points for visitors, temporary liquor permits, while allowing licensed hotels and restaurants operational flexibility.
As Gujarat positions Gujarat International Finance Tec-City (GIFT City) as India's global financial hub, the state government has further eased liquor consumption rules within the enclave, signalling a pragmatic shift aimed at attracting multinational firms and investments, and ensuring hospitality growth.
The latest move removes one of the key friction points for visitors, temporary liquor permits, while allowing licensed hotels and restaurants operational flexibility.
Industry stakeholders see the changes as part of a broader effort to align GIFT City's social and business environment with international expectations.
Anant S Iyer, director general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said the relaxation would help attract global companies and professionals.
"When we talk about India integrating into a global village, we need to provide world-class infrastructure and services," Iyer said.
"Progressive steps like these make that possible," he said, adding that the move would boost investments, job creation, hospitality, MICE (meetings, incentives, conferences, and exhibitions) activity, and tax revenues for the state," Iyer added.
In a recent notification issued by the home department, the Gujarat government amended earlier orders under the Gujarat Prohibition Act, 1949, expanding exemptions, simplifying permit procedures, and significantly widening access to licensed liquor facilities in GIFT City.
The changes build on relaxations first introduced in December 2023, and subsequently modified in April 2025.
Under the revised framework, individuals working in or visiting GIFT City are exempted from several provisions of the Prohibition Act, while holders of F.L. III licences, issued to hotels and restaurants, are exempted from multiple provisions of both the Act and the Bombay Foreign Liquor Rules, 1953.
Sanjit Padhi, CEO, International Spirits and Wines Association of India, said the reform was a timely step that brings the operating environment closer to global standards.
"From an industry perspective, these changes improve ease of doing business, allowing legitimate players to operate more efficiently while contributing to economic growth and formal state revenues," Padhi said.
The measures, he added, are expected to encourage investment and strengthen the hospitality and services ecosystem.
"A regulated and transparent framework supports tourism, employment and sustained revenue generation, while enhancing India's competitiveness for global businesses."
Most notably, 'external persons' -- individuals from outside Gujarat or foreign nationals -- can now consume liquor at designated hotels and restaurants within GIFT City simply by producing a valid photo identity card.
This dispenses with the earlier requirement of obtaining temporary permits, which was widely viewed as cumbersome for business visitors.
Instead of being confined to a designated 'wine and dine' zone, liquor can now be served and consumed in restaurants, lawns, poolside areas, terraces, food and beverage zones, and hotel rooms.
Liquor for rooms must be ordered from FL III licence holders.
Employees working in GIFT City continue to require a Liquor Access Permit, issued after verification by an authorised official.
Such employees can host up to 25 visitors, who may be issued temporary permits within GIFT City itself, provided the employee accompanies them. All consumers must be 21 years or older.
Licensed hotels and restaurants are permitted to serve alcohol anywhere within their premises, subject to strict compliance and record-keeping.
Unconsumed liquor must be destroyed, and violations can lead to suspension or cancellation of licences.
The licence fee remains Rs 1 lakh, with a security deposit of Rs 2 lakh.
Vinod Giri, director general, Brewers Association of India, termed the policy as an acknowledgment of alcohol's role in social and business engagement.
"Banning alcohol outright punishes responsible consumers and drives the trade underground," Giri said, arguing that prohibition narratives have lost relevance in modern economies.
He expressed hope that similar exemptions could eventually be extended elsewhere in Gujarat, beyond the finance city.
However, not all industry players see immediate benefits.
Debashish Shyam, cofounder and director of Ardent Alcobev, said GIFT City remains a small market in volume terms.
"With roughly 50 outlets and consumption largely limited to GIFT City employees, the opportunity is currently too small for brands like ours," he said, adding that the policy primarily benefits established national brands rather than newer entrants.
For Gujarat as a whole, the move reinforces a dual approach, with strict prohibition statewide but targeted liberalisation in strategic business zones.
Feature Presentation: Ashish Narsale/Rediff
© 2025