How policy reforms are boosting growth of GCCs in India

India’s Global Capability Center (GCC) story has been one of unprecedented growth and transformation. Today, the country hosts over 1,600 GCCs employing more than 1.9 million professionals, with the sector projected to cross $100 billion in revenue by 2030. The evolution of India’s journey from a low-cost, arbitrage-led destination to a powerful engine of innovation, R&D and strategic impact has been strongly shaped by a series of astute policy and regulatory interventions.
 

National Initiatives Fueling Growth

At the national level, the Make in India initiative has played a pivotal role in creating a fertile ground for GCCs to thrive. While it was initially positioned as a manufacturing-focused program, its ripple effects have extended far beyond, touching sectors like technology, healthcare, and financial services—key domains for GCCs. By encouraging foreign direct investment and simplifying regulatory frameworks, the initiative has provided a significant boost to India’s standing as a hub for global innovation. The broader vision of India@2047, which envisions the country as a $30 trillion economy, also underscores the role of GCCs in propelling growth through job creation, knowledge transfer, and sustainability initiatives.

State-Level Policies Shaping the GCC Landscape

Bengaluru: The Technology Capital

States have been equally proactive, shaping policies tailored to the specific needs of GCCs. Bengaluru, long recognized as India’s technology capital and now hosting 35% of India’s GCCs, has further strengthened its leadership through the Karnataka government’s GCC policy. Tax incentives, infrastructure support, and partnerships with academic institutions have ensured that the city remains a magnet for multinational companies across industries, from IT to healthcare. The state’s new GCC policy marks a significant shift towards a more investor-friendly environment by guaranteeing all operational approvals within 45 days, addressing one of the major hurdles for MNCs to set up GCCs. 

Tamil Nadu: Emerging as an Automotive and Banking Hub

Tamil Nadu has taken a different yet equally impactful approach, offering capital subsidies up to INR 25 crore and robust skill development programs that have made cities like Chennai emerging hotbeds for automotive and banking GCCs.

Hyderabad: Innovation-Driven Growth

Hyderabad’s rise as a GCC hub is a testament to Telangana’s innovative governance. The TS-iPASS initiative, which offers single-window clearances, coupled with incentives for high-tech innovation, has brought some of the largest global players to the city. Hyderabad’s reputation for offering a high quality of life further strengthens its appeal, particularly for companies looking to attract global talent.

Beyond Technology: Multidisciplinary Expertise in GCCs

What’s remarkable about these policy reforms is how they collectively foster an ecosystem where GCCs can move beyond technology as their sole focus. Today’s GCCs are embracing multidisciplinary expertise, becoming centers of excellence in areas like healthcare, energy, sustainability, and automotive innovation. For instance, chemical engineers, marine researchers, and even medical professionals are finding roles in GCCs as they expand into domains like renewable energy, oceanography, and telemedicine.

Expanding to Tier 2 and Tier 3 Cities

This evolution also reflects India’s strategic intent to take the GCC narrative beyond metro cities. With 30% of new GCCs choosing Tier 2 and Tier 3 cities, thanks to location-specific incentives and government efforts to improve infrastructure, cities like Pune, Coimbatore, and Visakhapatnam are emerging as attractive alternatives, offering cost advantages and access to untapped talent pools.

Challenges and Future Outlook

Addressing Persistent Hurdles

Of course, challenges persist. Infrastructure bottlenecks, talent retention, and regulatory complexities remain hurdles. However, programs like the National Skill Development Mission and the Production-Linked Incentive (PLI) schemes are gradually addressing these concerns. Additionally, the focus on digitizing governance is simplifying compliance processes, ensuring that companies can set up and operate GCCs with minimal friction.

Projections and Impact

India’s success in the GCC space is not just about policies but about the vision driving those policies. The shift from cost to capability, from arbitrage to innovation, is a reflection of the country’s readiness to lead in a globalized, tech-driven world. With projections indicating growth to 2,000+ GCCs by 2025, potential for 500,000 new jobs, and expected FDI of $15-20 billion, India is poised to remain at the forefront of this transformation. As GCCs continue to attract talent, diversify their expertise, and address global challenges, the nation’s leadership position in this space becomes increasingly central to the global business landscape.

The growth of GCCs in India is not merely a business story—it’s a testament to how thoughtful governance and collaborative policymaking can unlock a nation’s potential on the global stage. With a strong foundation in place and ambitious goals for the future, India’s GCC ecosystem is set to drive not just corporate success but broader economic and social progress.