GIFT City Jumps 9 Places to 37th in Global Financial Centres Ranking

Why in News?

• Gujarat International Finance Tec-City (GIFT City) has improved its position by nine places to rank 37th globally in the latest Global Financial Centres Index (GFCI 40).
• It has also entered the top 15 financial centres in the Asia-Pacific region, becoming the only Indian financial centre in this group.

Important points 

• GIFT City ranked 37th globally in GFCI 40, compared with 46th in GFCI 39.
• It is now among the top 15 financial centres in the Asia-Pacific region.
• GIFT City ranked 26th globally in FinTech, improving from 29th in the previous edition.
• It was also included among the 15 financial centres expected to become more significant over the next two to three years.
• The latest GFCI assessed 115 financial centres worldwide.

What is the Global Financial Centres Index?

The Global Financial Centres Index (GFCI) is a global ranking that assesses the competitiveness of financial centres.

The index considers several factors, including:

• FinTech capabilities
• Access to finance
• Availability of skilled talent
• Regulatory environment
• Information and Communication Technology (ICT) infrastructure

The latest edition is based on 144 instrumental factors, 39,531 assessments and responses from 6,147 participants.

GIFT City and FinTech

• GIFT City has improved its global position in FinTech from 29th to 26th.
• The improvement reflects the expansion of its financial services ecosystem and the growing integration of finance, technology and innovation.
• GIFT City is focusing on strengthening its capabilities for cross-border financial activities, increasing international connectivity and encouraging greater participation in financial markets.

GIFT City's Future Plans

GIFT City plans to focus on:

• Bringing more financial businesses and investors to the city
• Improving connections with international financial markets
• Supporting international money and investment transactions
• Developing services for more advanced financial activities

Future Priorities for Financial Centres

The GFCI report highlighted several areas that are expected to become increasingly important for financial centres over the next five years.

These include:

• Digital infrastructure such as cloud services and data connectivity
• Cybersecurity and digital resilience
• FinTech and digital asset businesses
• Stronger anti-money laundering frameworks
• Prevention of financial crime
• Deepening of capital markets

What is GIFT City?

• Gujarat International Finance Tec-City (GIFT City) is located in Gandhinagar, Gujarat.
• It is India's first International Financial Services Centre (IFSC) and is being developed as a financial and technology hub for both domestic and international businesses.
• Its major sectors include:
  • Banking and financial services
  • Insurance
  • FinTech
  • Information Technology and Information Technology-enabled Services (IT/ITeS)
  • Capital markets
  • Other financial and professional services

Why is GIFT City's Rise Important for India?

The improvement in GIFT City's global ranking shows the growing role of India's financial services sector.

A stronger GIFT City can help India:

• Attract international financial companies
• Bring more investment into the country
• Create skilled jobs
• Promote financial technology
• Support international financial transactions from India

Significance for India

• The rise of GIFT City in the global financial centres ranking reflects India's efforts to develop a globally competitive financial services ecosystem.
• A stronger GIFT City can help India attract international financial institutions, investment, FinTech companies and skilled professionals while supporting cross-border financial activities from an Indian financial hub.

Conclusion

The improvement in GIFT City's GFCI ranking highlights the growing role of India's International Financial Services Centre in the global financial ecosystem. Its future development will depend on stronger digital infrastructure, financial innovation, international connectivity and a robust regulatory framework.

FAQs