The "gifted" concept is a US one where education is socialised and funded almost fully by govt. Also everyone mostly goes to govt schools. Govt schools are therefore designed to cater to average intelligence kids. Super intelligent kids are a small slice if the population and this socialised state schooling system doesn't work for them. So to cater to this slice of hyper intelligent kids, US came up with the term gifted. They used the word gifted instead of intelligent or other words so that the rest of everyone doesn't feel offended. Gifted conveys a sense as if its a gift from god. So parents of the averages won't really mind the term. Instead if they called them intelligent, the averages would not accept or like that their kids are not as intelligent. However, the reality is, only a small segment is really in the category of very intelligent. But everyone wants to think or be in that category. In socialised systems, it is hard for average people to accept differentiation of the best from the rest since that goes against the principle of equality for everyone. So they have introduced an element of divinity by calling them gifted instead of intelligent. The system flows over to universities. The best brains go to the best universities, best companies and so on.
Indian school system isn't based on the same model. Lets analyse the pvt sector schools since that is where most of our kids are. In our system, schools play the role of aggregating the intelligent ones in the population. The result is - the hyper intelligent ones naturally get aggregated into the best schools, the slightly lesser ones go to the next best and so on. So if you see, among the major cities, NPS indiranagar, DPS RK Puram and such schools are the automatic magnets that attract the hyper intelligent. Same concept carries over where the hyper intelligent get aggregated into IITs, IIMs, AIIMS, SPAs, IAS and the like. Lesser intelligent ones get into lesser institutes and the slope goes to the bottom.
So, folks who are using the term gifted. Pls understand the differences in the 2 systems. In US, there is a need to identify giftedness since the system is socialised and like a flat bowl. In India, the system is already setup to be a funnel.If your kid is "gifted"/ hyper intelligent, system will automatically funnel the child to the best of places. No need to do anything special except to give them the best of books to read and expose them to all possible challenges.