Experiments with liquor norms: GIFT City’s “wine & dine” revenues rise 522% in FY26

A quiet policy shift in India’s most heavily regulated alcohol market is starting to show in the numbers. In GIFT City, India’s international financial services hub established within the ban-limited borders of Gujarat, revenues from “wine and dine” establishments increased by over 522 percent in the 2025-26 financial year following the gradual easing of liquor access norms.

The impact is now becoming absolutely visible. Revenues from these facilities rose from ₹31.27 lakh in FY25 to ₹1.94 crore in FY26 even as the state continued to enforce the ban elsewhere. Although the revenue base remains modest, the sharp increase demonstrates how demand responds quickly when access barriers are reduced, even in a tightly controlled ecosystem.

This growth comes barely a year after controlled access to liquor was first allowed in the greenfield financial hub in December 2023. Liquor sales at GIFT City are currently limited to only two establishments: Grand Mercure Gandhinagar GIFT City and West India Recreation Projects Pvt Ltd. Operated by GIFT City Club. Despite this limited coverage, both operators reported sharp growth. While Grand Mercure’s revenue increased by 3.5 times on a year-on-year basis, GIFT City Club’s revenue saw an even steeper increase of over eight times, indicating strong latent demand.

Officials attribute this increase to the Gujarat Government deliberately easing prohibition norms. The revised framework allows non-resident visitors to access liquor simply by presenting a valid photo ID, eliminating the previous requirement to obtain a liquor permit. Permit holders can now host up to 25 guests at a time, while patrons without a permit are allowed into the wine and dining areas for meals. Employees working at GIFT City are also eligible to receive liquor access permits based on their ID cards, further expanding the pool of eligible consumers within the restricted zone.

A total of 1,320 liquor licenses have been issued in GIFT City since 2024, including six group permits. The state government has earned around ₹26.5 lakh from permit fees so far. Individual permits are priced at 2,000 Indian rupees, valid for two years, and group permits are priced at 5,000 Indian rupees. According to industry sources, the GIFT City model is increasingly being viewed as a limited but important experiment in relaxing prohibition norms to promote a global business environment without diluting the broader policy framework in Gujarat.

Released May 1, 2026