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GIFT City Ranks 40th Globally in Global Financial Centres Index

Source:Indian Express ↗

Why It Matters

Demonstrates India's rising footprint in global financial services through GIFT City, serving as a vital topic for questions concerning state-level economic milestones, financial hubs, and international indices.

Summary

Gujarat International Finance Tec-City (GIFT City) has advanced in the Global Financial Centres Index (GFCI), ranking 40th globally and 37th in the Asia-Pacific region, underscoring its growing prominence as a leading international financial hub.

Key Points

  • Gujarat International Finance Tec-City's (GIFT City) finance center (GFCI) climbed to the 40th global rank globally.
  • It secured the 37th position in the Asia-Pacific region according to the latest Global Financial Centres Index (GFCI) report.
  • This marks a significant milestone for India's maiden International Financial Services Centre (IFSC) in expanding its international financial standing and competitiveness.

Important Terms

Gujarat International Finance Tec-City (GIFT City)

India's first operational smart city and international financial services center (IFSC), located in Gujarat, designed to compete with global financial hubs by offering world-class infrastructure and tax incentives.

UPSC context

Important for GS Paper III (Indian Economy, Financial Markets and Institutions); tests understanding of India's special economic zones and international financial services.

Source
Global Financial Centres Index (GFCI)

A leading biannual ranking of the competitiveness and viability of global financial centers, published by Z/Yen and the China Development Institute.

UPSC context

Relevant for GS Paper III (Growth, Development and Employment, Global Economic Indices); tests knowledge of international economic benchmarks and India's standing.

Source

Static Concepts Connected

Indian Economy and Financial Markets

What is the regulatory framework governing International Financial Services Centres (IFSCs) in India?

  • Apex Body: Unified Regulator: Regulated by the International Financial Services Centres Authority (IFSCA), established under the IFSCA Act, 2019.
  • Multi-Sectoral Powers: Single Window: IFSCA exercises powers of RBI, SEBI, IRDAI, and PFRDA for financial products, services, and institutions in IFSCs.
  • Foreign Jurisdiction: Offshore Status: Transactions in IFSCs are treated as transactions carried on outside India or in foreign currency.

Cross-Topic Patterns

  • SEZ Frameworks and Global Financial Integration

    GIFT City's tax incentives and offshore banking units demonstrate how domestic special economic zones interface with global trade and financial architecture.

Expect statement-based questions on GIFT City's status as India's only IFSC and its performance across GFCI's competitive pillars.

Linked PYQs · 2

Linked PYQs · 2

  • 2025GPSC_PRELIMSGS1

    Which of the following statements are correct regarding the economy of Gujarat according to the Socio-Economic Review, 2024-2025 of Gujarat? 1. Gujarat has consistently contributed over 8% to India's GST collections, highlighting its economic vitality and strength. 2. During the year 2022-23, Gujarat stood first in handling total cargo among the states of India. 3. According to the results of Annual Survey of Industries (ASI) 2022-23, Gujarat is first in the country in Industrial Production and Fixed Capital.

  • 2025GPSC_PRELIMSGS1

    Which of the following statements is/are correct regarding Foreign Direct Investment (FDI) in Gujarat? (A) Gujarat secured the first position in the country in terms of FDI equity inflows with 16.43% contribution in FDI during FY 2023-24. (B) USA, Mauritius, Singapore, UAE and Cayman Islands are among the top five countries attracting FDI Equity Inflow in Gujarat.