India has slipped to the 38th spot in the ranking of world's leading financial centres, which is topped by the UK.
Hit by the global financial turmoil, most of the nations in the list have seen their position falling compared to last year's, according to World Economic Forum's Financial Development Report, that ranks world's 55 leading financial systems and capital markets.
India was ranked at the 31st place last year.
The US, which was on top last year, has dropped to the third spot while Australia has dramatically improved its position to the second position from previous year's 11th rank. The UK was placed second in the 2008 list.
"The rankings are based on over 120 variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors," WEF said.
The BRIC nations, except Brazil, have fallen in their rankings. Brazil has improved its standing to 34th position compared to last year's 40th.
China, ranked at 26th spot this year, had cornered 24th place last year while Russia tumbled to 40th rank from previous year's 36th.
Other nations in the top ten are Singapore (4th), Hong Kong SAR (5th), Canada (6th), Switzerland (7th), the Netherlands (8th), Japan (9th) and Denmark (10th).