Gift City, Mumbai, and Delhi Climb Global Financial Centre Index Rankings

India’s growing influence in international trade, investments, and financial transactions is driving its financial hubs higher in global rankings. While Gift City-Gujarat has gained significant traction due to central government support, Mumbai and Delhi are also making steady progress on the global financial stage.

India’s financial hubs are gaining global recognition, with Gift City in Gujarat advancing five spots to secure the 52nd position in the latest Global Financial Centres Index (GFCI). Mumbai has also shown progress, moving up four places to rank 54th in the 36th edition of the GFCI, compiled by Z/Yen Partners and the China Development Institute (CDI). Meanwhile, Delhi, the only other Indian city included in the index, made a notable leap of seven positions to claim the 68th spot.

The GFCI, which evaluates financial centers based on professional assessments and multiple economic indicators, highlighted significant shifts in global rankings. 

Gift city leading the way

Gujarat’s Gift City, India’s first smart financial hub, was developed to compete with major global financial centers. It houses the country’s first International Financial Services Centre (IFSC), facilitating cross-border financial transactions in foreign currencies while allowing international institutions to operate under more flexible regulations than those governing domestic markets.

Businesses operating in Gift City benefit from incentives such as a ten-year tax exemption on profits and a streamlined regulatory framework under the IFSCA. The city is expected to provide an enabling environment for banking, insurance, asset management, and other financial sectors with global aspirations.

Financial centres in the Asia-Pacific region

In the Asia-Pacific region, Hong Kong, Singapore, and Shanghai continue to dominate as top financial centers. India’s financial hubs are gradually climbing the ranks, with Gift City leading at 52nd, Mumbai at 54th, and Delhi at 68th.

Source: GFCI 36 Rank

The latest edition of the GFCI, published on September 24, 2024, evaluates the competitiveness of 121 financial centers worldwide. The index is updated biannually in March and September. GFCI 36 assessed 133 financial centers, with 121 making it into the main index. Rankings are based on 143 quantitative indicators from sources such as the World Bank, OECD, and the United Nations, combined with 37,830 assessments from 6,188 financial professionals via the GFCI online survey.

Top global financial hubs and key regional trends

New York retains the top global position, followed by London. Hong Kong has regained third place ahead of Singapore, while San Francisco remains fifth. Chicago and Los Angeles have surpassed Shanghai, which has dropped to eighth, with Shenzhen and Frankfurt rounding out the top ten.

In Western Europe, London leads the region in second place globally, though the region saw the largest decline in ratings, averaging a 1 percent drop. Dublin, Lugano, Jersey, Guernsey, and the Isle of Man improved by at least nine ranking spots. In the Asia-Pacific region, seven centers rank in the global top 20, though the region experienced a 0.56 percent rating decline. Kuala Lumpur was the only city to gain more than 10 positions, while Sydney, Nanjing, and Tianjin saw significant drops.

North America remains strong, with four cities—New York, San Francisco, Chicago, and Los Angeles—holding positions in the top ten and Washington, DC, ranking in the top 20. Montreal showed the largest gain in the region, rising six places. In Eastern Europe and Central Asia, Astana climbed to 62nd, while Almaty surpassed Tallinn to become the second-ranked center in the region.

In the Middle East and Africa, Dubai and Abu Dhabi lead, with Dubai climbing four places to 16th globally. Tel Aviv remains third in the region, while Casablanca is the top African financial center. Riyadh and Doha reversed previous declines, each rising over 20 spots, while Kuwait City improved by 11 places.

Latin America and the Caribbean saw Bermuda rise 27 places to lead the region, followed by the Cayman Islands and São Paulo. The region was the only one to see an overall rating increase, averaging a 0.65 percent gain.

Future prospects of India’s financial hubs

Experts in India have made a note that while Mumbai and Delhi serve as key financial hubs, they encounter challenges such as regulatory complexities, infrastructure limitations, and political uncertainties. Additionally, competition from established financial centers and the lack of a robust innovation ecosystem could hinder their progress in global rankings.

Looking ahead, it is predicted that the positive momentum will continue to drive India’s financial sector. Gift City is expected to strengthen its position, while cities like Bengaluru and Hyderabad, with their flourishing tech and fintech industries, could emerge as new financial hubs. Singh emphasized that as the government and industry leaders focus on enhancing financial infrastructure, these cities could contribute to a more diversified financial landscape.

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