Surat’s IT Future: why an IT SEZ is essential for city’s growth

Surat, the eighth-largest city in India by population and ninth-largest by GDP, has long been recognized as a hub for textiles, diamonds, and industrial growth. However, with the increasing significance of the IT sector in India’s economic landscape, Surat is now setting its sights on becoming a major player in technology and innovation. The recent Gujarat Budget for the fiscal year 2025-26 has allocated funds for IT parks and co-working spaces, including a provision of ₹2 crore for Surat. While this is a positive step, the question remains: Is this enough for a city of Surat’s scale and potential?

The Need for an IT SEZ in Surat

Surat has a population of approximately 84 lakh and is known for its rapid economic growth, clean infrastructure, and high livability standards. Compared to other major cities in Gujarat, Surat is about 5-10% smaller than Ahmedabad but significantly larger than Vadodara, Rajkot, Bhavnagar, and Jamnagar. Given this, a mere ₹2 crore allocation may fall short in establishing a thriving IT ecosystem.

Instead of just an IT park, Surat requires an IT Special Economic Zone (IT SEZ), which would provide specialized infrastructure, tax incentives, and regulatory support tailored for IT and IT-enabled services (ITES) companies. Unlike a standard IT park, an IT SEZ offers duty exemptions, tax benefits, and simplified procedures that attract major investors and multinational corporations. This would not only enhance Surat’s economic landscape but also generate significant employment opportunities in the technology sector.

Existing IT Infrastructure and Potential Locations

Many Surtis might not be aware that Surat already hosts a Software Technology Park (STPI) under the jurisdiction of STPI-Gandhinagar, established in 2004 at Bhestan. However, this facility alone is not enough to drive Surat’s ambitions of becoming a major IT hub.

Ideal locations for an IT SEZ in Surat include:Magdalla, Abhava, Vesu, Sarsana (near the airport), Surat Multi-Modal Transport Hub,Niyol-Antroli Bullet Train Station,SVNIT, IIIT, VNSGU, Auro University, and the Narthan-Dandi Road Education Hub, and Areas along the Outer Ring Road, such as Icchapore, Palanpore, Barbodhan, Sonsak (Vanakala), Orma, Variav, and Valthan.

A well-planned IT SEZ in these locations could provide easy accessibility, attract skilled professionals, and ensure seamless business operations.

The Role of Key Stakeholders

To transform Surat into an IT hub, several key organizations need to collaborate:

Surat Municipal Corporation (SMC) & Surat Urban Development Authority (SUDA): Provide land and infrastructure support.

Government of Gujarat & Government of India: Offer policy support and financial incentives.

Surat Goods and Commercial Chamber of Commerce (SGCCI) & CREDAI-Surat: Facilitate investment and business development.

Industry Leaders & Educational Institutions: Establish skill development centers and research collaborations.

The Smart Surat IT Summit & Future Prospects

Recognizing Surat’s potential, SGCCI and CREDAI-Surat have initiated the Smart Surat IT Summit, a platform to bring together policymakers, industry leaders, and entrepreneurs to discuss the roadmap for Surat’s IT growth. The summit, supported by SMC and SUDA, is expected to be held at ICC Sarsana or Dream City Khajod, both key locations in Surat’s development plans.

“Surat’s MLA, MP, and Mayor can play a pivotal role by inviting national and global IT firms to establish their Offshore Development Centers (ODCs) or Software Development Centers (SDCs) in Surat. By actively promoting Surat as a viable IT destination, these efforts could significantly boost the city’s global appeal” said Vishwas Sawant, IT expert.