International financial centre in India: A tale of two states

Indian financial services industry has undergone a great deal of transformation in recent past. It has come a long way from being a sleepy industry to a highly proactive and dynamic industry.the next would mean a natural progression of our financial services industry is y to start selling financial services abroad. These internationally tradable financial services are known as international financial services across globe the international financial services are produced in international financial centres (ifc's). Ifc's are the financial centres that cater to customers outside their own jurisdiction.

Fortunately, hpec report on mumabi as ifc and setting up of gujarat international finance tech city (gift) in gujarat has set the stage for the establishment of ifc in india. The paper focuses on studying the financial centre profile of india in relation to prerequisites recognized in literature (jao.1997) for ifc. The study on various prerequisites and quantitative benchmarks of ifc suggests that india largely meets the requirements of an ifc. The paper also compared both the states gujarat and maharashtra which are competing to be first ifc's of india. Gujarat owes its strength to investment environment while maharashtra thrives on being the financial capital of india. The study concludes that if india desires it may adopt the path of creating multiple financial hubs to serve the domestic economy better this will automatically and finally lead to creation of an ifc in india.