Indian States Racing to Become the Next GCC Hotspot

Discover how Indian states like Karnataka, Telangana, Maharashtra, Tamil Nadu, and Delhi-NCR are vying to attract Global Capability Centres (GCCs). Learn which states are leading the race and how India is set to remain the world’s top GCC destination.

The world is changing with technology. With each passing year, new technologies are reshaping how companies operate, innovate, and grow. To stay ahead, multinational firms are setting up Global Capability Centres (GCCs) in countries that offer the right mix of talent, cost advantage, and infrastructure.

India has emerged as the global leader in this race. As of now, India hosts about 1700-1800 GCCs, employing 1.9 million people and generating around US$64.6 billion in revenue. States across the country are now competing aggressively to attract these centres to become the next big GCC hotspot.

What does a GCC hotspot mean?

A GCC hotspot is a preferred location for multinational firms to set up their subsidiary centres to leverage local talents for their departments like IT, R&D operations, etc. These hotspots are becoming popular because they provide:

• Cost-effective operations compared to developed markets.
• A skilled workforce in advanced technologies like AI, analytics, and engineering.

Note: India now hosts more than 50% of the world’s GCCs.

Why are states competing to attract GCCs?

The reality of the GCC boom is that it is more than just office setups. A GCC does not just create thousands of jobs; it also fuels innovation. Consequently, Indian states are competing to gain the top position as attractive hubs for GCCs. For this, they are:

• Offering tax benefits and subsidies
• Building IT parks, special economic zones, and smart infrastructure
• Simplifying approvals and compliance processes
• Promoting R&D and startup ecosystems

Also Read: Restructing of Global Value Chains and Economic Power Centers by GCCs

Top Indian states in the GCC race

Karnataka (Bengaluru)

The state alone has over 875 GCCs, and it accounts for about 30% of India’s total number of GCCs. Karnataka launched India’s first dedicated GCC policy (2024 - 2029). It aims to add 500 new GCCs by 2029, create 350,000 jobs, and generate a revenue of US$50 billion.

Telangana (Hyderabad)

Hyderabad is an important part of the GCC revolution in India, as it hosts around 355 GCCs. The city focuses on strengthening AI, life sciences, and R&D. With Telangana’s policy of TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System), operations have become faster for businesses.

Maharashtra (Mumbai & Pune)

In the BFSI sector, Mumbai leads with approximately 207 GCCs, while Pune attracts GCCs in IT and engineering with about 178 GCCs. The state is promoting fintech infrastructure and better connectivity to strengthen its position.

Delhi-NCR

While focusing on co-working hubs and improved urban infrastructure, Delhi-NCR attracts GCCs in IT, telecom, and consulting. The region has about 272 GCCs, close to Maharashtra’s share.

Tamil Nadu (Chennai)

The state has over 350 GCC centres, with Chennai alone having about 300 GCCs, known for engineering, automotive, and hardware R&D. The state is promoting startup-friendly policies to bring more innovation.

Other emerging states

• Kerala: Over 30 multinational corporations are in the queue to set up subsidiaries in the state’s tier-II cities.
• Haryana & Uttar Pradesh: Gurugram and Noida are growing as IT and fintech hubs.

What is the future?

According to recent reports, the GCC industry in India is projected to cross US$100 billion by 2030 with over 2,200 centres and up to 3 million jobs. While Karnataka and Telangana currently dominate, other states like Maharashtra, Tamil Nadu, and Delhi-NCR are rapidly catching up with the trend. With this healthy competition, India will ensure it remains the world’s top GCC destination as a global innovation powerhouse.

Conclusion

India has now geared up to become a global hub for GCCs, and hence, it is important for firms to maintain flexible and cost-effective workspaces. WeWork helps you with the solution by providing read-to-use, scalable offices across major urban centres in the country. Sign up for modern infrastructure and become an integral part of the next wave of GCC growth in India.

FAQs

Which state in India has the most GCCs?

Karnataka hosts about 875 GCCs (approximately 30% of the total GCCs in the country). With its GCC policy, the state aims to launch 500 new centres by 2029.

Why are Tier-2 cities gaining attention for GCCs?

Tier-2 cities in India are considered for new GCCs as they offer lower costs, better infrastructure, and growing skilled talent.

How much is India’s GCC sector expected to grow by 2030?

The GCC sector of India is projected to cross US$100 billion by 2030.