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Kerala is steadily laying the groundwork for a major transformation. With Vision 2031 and the ReCode Kerala 2025 initiative, the state has positioned itself as a future-ready hub for Global Capability Centres (GCCs), making a compelling case for international companies seeking a stable, innovative base in India.

At the heart of this ambition lies Vision 2031, a strategic roadmap launched by the state government. It aims to attract some 200 new GCCs, build high-tech innovation corridors, especially around Kochi and Thiruvananthapuram, and boost ecosystems spanning the digital, semiconductor, and R&D sectors. Notably, the state is targeting 5 lakh new IT jobs by 2031 and hopes to capture a 10 per cent share of India’s tech market.

Kerala is emerging as a contender for GCCs in India. First, it boasts strong human development indices, high literacy, low attrition rates and a culture of education and digital adaptability. Many GCCs value talent, quality of life and stability, all of which the state offers. Second, its digital and infrastructure credentials are advancing rapidly. The state’s IT vision includes 30 million sq ft of new office space, adoption of open-source software, and full online delivery of government services by 2031. Third, the state government is actively using policy levers: a dedicated GCC policy, incentives for capital and operating expenditure, and dedicated facilitation teams.

Moreover, the innovation corridors planned around Kochi and Thiruvananthapuram are anchored by major projects such as the Vizhinjam Outer Area Growth Corridor and Kochi-Bengaluru industrial corridor. These create spatial clusters that appeal to GCCs seeking scale, connectivity and ecosystem synergies. The state is also emphasising next-generation technological missions: a semiconductor mission, an AI mission (complete with a “Kerala AI Bill of Rights” by 2030), and a future-tech mission.

For multinationals exploring GCCs, the appeal is clear: a stable governance environment, access to skilled talent, comparatively lower costs than India’s Tier-1 cities, and strong alignment with national innovation mandates. According to a recent report, Thiruvananthapuram in particular is emerging as a GCC-friendly hub, driven by its “future readiness,” robust infrastructure and institutional depth.

Despite the promising picture, challenges continue to remain. Land scarcity, competition from other states with GCC-friendly policies, and the need to turn vision into execution are a few challenges which stand in the way. Kerala has already built important credentials: early leadership in IT parks, a vibrant start-up ecosystem and a socially conscious population. The government’s aim to foster 20,000 start-ups and attract ₹20,000 crore of investment speaks volumes.

In short, Kerala is not just chasing the role of a back-office destination. It is aiming higher: a diversified, innovation-led GCC landscape built on ethical tech, sustainable growth, and global talent. For the GCC ecosystem, the message is simple: Kerala is open for business and is gearing up for the future.