India’s New GCC Policy: Driving Global Investments & Encouraging Growth

Read about how India's new GCC policy aims to attract global players, boost innovation hubs, and drive economic growth across tier-2 and tier-3 cities.

India has recently grown as a hub for Global Capability Centres (GCCs). It has certainly broken its early image of being a low-cost outsourcing destination. Today, these GCC centres are not just handling back-office tasks. They are also designing products, developing AI tools, conducting research and shaping global business strategies.

With over 1800 GCCs operating in the country and contributing billions to the economy, the government is now preparing a new GCC policy to take this success to the next level.

The policy is being introduced to attract more global players, spread growth beyond big cities and strengthen India’s position as a world leader in high-value capabilities.

Objectives of the new GCC policy

The new GGC policy, developed by the Ministry of Electronics and Information Technology (MeitY), aligns with India’s ambition to become a leader in digital transformation. It has been created keeping in mind that the GCC sector has changed dramatically. At present, many multinational corporations see their Indian GCCs as innovation hubs rather than just cost centres. So, the new GCC policy would focus on:

• Providing incentives to companies set up GCCs in tier-2 and tier-3 cities.
• Highlighting the importance of future-ready skills such as AI, healthcare technology and financial analytics.
• Supporting smaller and niche GCCs in sectors like fintech, life sciences and engineering.

Also Read: How Tier-II and III Cities Are Driving GCC Expansion in India

What are the incentives under the new GCC policy?

With various types of support, including incentives, the government plans to encourage growth. These include:

• Tax Benefits: It includes corporate tax reductions, GST rebates and exemptions on export profits for GCCs operating in targeted regions.
• Infrastructure Grants: This includes funding for IT zones and business parks in small cities.
• Employment Support: Providing salary support to companies hiring local talent.
• Innovation Funding: Co-investment in R&D projects, AI innovations and digital programs.

These incentives would enhance existing schemes like Special Economic Zones (SEZs) and Software Technology Parks, boosting the growth of GCCs.

How are state governments helping?

Several state governments have already taken strong steps to create policies to draw Global Capability Centres (GCCs):

• Karnataka - With incentives like innovation support and rental reimbursements, the state’s GCC Policy 2024-2029 is looking to open 500 new centres and create 3.5 lakh jobs in five years.
• Uttar Pradesh - The state has aimed for 1000+ centres and 5 lakh jobs, while offering full stamp duty exemption and payroll subsidies.
• Maharashtra - It would prioritise investments in tech parks and SEZs and work with industry to shape its own GCC-friendly framework.

GCC moving beyond tier-1 cities

Since its inception, the GCC's growth in India has been mostly concentrated in tier-1 cities like Bengaluru, Hyderabad, Pune, and a few other major hubs. But as the sector expands, companies are looking at cities like Jaipur, Coimbatore, Visakhapatnam and Bhubaneswar. These locations offer a number of benefits, including:

• Unlocking local talents
• Lower operational costs
• A growing base of skilled graduates
• Space for new business parks and offices

How India plans to stay ahead of the curve

India is already a leader in the GCC market; however, it faces competition from countries like the Philippines, Poland, Ireland and Singapore. These nations offer attractive tax regimes and innovation-friendly policies. So, to keep an edge, India would need not only cost advantages but also fast approvals, world-class infrastructure and strong intellectual property protections.

The way ahead

Nasscom has projected the Indian GCC market to reach USD 100 billion by the year 2030, employing over 2.5 million professionals, creating a huge opportunity. So, if the new policy succeeds, it would result in more innovation hubs, more skilled jobs and a stronger role for India in shaping global business strategies.

Also Read: How GCCs in India Are Revolutionising Innovation Across Industries