The Growth of india’s Financial Services / ITeS Sector
The last decade has seen unprecedented growth in
India¡¯s financial services sector. It employs
over 3 million people, constitutes about 5% of the
GDP and has an estimated market capitalization of
over US$ 200 billion. As India experiences continued
economic growth, the financial sector could generate
about 10-11 million jobs and a GDP contribution of US$
350 to 400 billion by 2020. With a sustained growth
and rapid development in technology and infrastructure,
an increasing share of financial services would get
centralized. McKinsey & Company¡¯s market
assessment report estimates potential of about 6
million centralized jobs across multiple service
roles.
Several developed countries have successfully established
high-tech financial hubs, which over time have catered
as international financial services centers. These
centers provide suitable regulatory regimes and create
a business environment to promote talent and increase
capital flow. As they develop they create significant
economic value for their domestic economies, e.g.
London and New York account for 10% of the GDP and
about 5% of jobs. Emerging financial services centers
like Singapore and Hong Kong have achieved similar
levels of concentration of economic activity over
short periods of time.
How to unlock the potential?
India is not able to fully realize it¡¯s vast
potential in financial services because our cities
do not have the required infrastructure. If India
wants to compete with international financial hubs,
our cities will have to provide global standards
in infrastructure, office space, internet and telephone
connectivity and lifestyle opportunities which would
attract top talent.
GIFT¡¯s Positioning
GIFT aspires to cater to India¡¯s large financial
services potential by offering global firms a world-class
infrastructure and facilities. It aims to attract
the top talent in the country by providing the finest
quality of life.
It is estimated that GIFT would provide 500,000 direct
and an equal number of indirect jobs which would
require 5.76 million square meter of real estate office
and residential space.
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