The Glycemic Index (aka GI) is simply a scale that measures the effects of a food's carbohydrates on the level of blood sugar in your body. It can be a very useful tool for taking control of your blood sugar, which is a huge factor in obesity and diabetes among other things.
A food's Glycemic Index is determined by measuring the the increase in blood sugar after the consumption of that particular food and then compared to the increase caused by the consumption of glucose (a simple sugar).