How Indian States Are Wooing GGCs to Set Up Shop
Uttar Pradesh is vying for India's booming GCC market through investments in talent and infrastructure, while promoting Tier 2 and 3 cities as emerging hubs.
India’s growing appeal as a destination for Global Capability Centres (GCCs) is being strengthened by a combination of central government reforms and increasingly competitive state-level policies. Simplified compliance requirements, labour reforms, digitised approvals, liberalised FDI norms, and improved ease of doing business have made it easier for multinational companies to establish and expand operations across the country.
As GCCs evolve from cost-saving back offices into strategic hubs for innovation, product development, AI and advanced analytics, states are racing to secure a share of this rapidly expanding market. India currently hosts more than 2100 GCCs employing 23 lakh professionals and generating more than $98.4 billion in revenue. By 2030, that figure is expected to grow to over 2400 GCCs employing 28 lakh people and contributing $105 billion in revenue.
Traditionally, Bengaluru, Hyderabad, Chennai, Pune, Mumbai and the NCR have dominated the GCC landscape. However, several states are now promoting tier-2 and tier-3 cities as the next frontier for expansion. One of the states leading this push is Uttar Pradesh, with Chief Minister Yogi Adityanath engaging senior executives from multinational corporations in Bengaluru on June 24 as part of efforts to position the state as an emerging GCC destination.
To attract investors and global corporations to set up GCCs, the Uttar Pradesh government is offering over one million square feet of ready-to-occupy office spaces across cities such as Varanasi, Gorakhpur, Bareilly and Prayagraj. Coupled with an annual output of more than 2,00,000 STEM graduates, Uttar Pradesh is positioning itself as an attractive destination for GCC expansion, combining a deep talent pool with readily available infrastructure.
Talent remains India’s biggest competitive advantage. The country accounts for 28% of the global STEM workforce and 23% of global software engineering talent, giving states a strong foundation for building their GCC strategies. Furthermore, to strengthen this number, states are investing in skill-enhancement initiatives such as Skill India, Digital India and Future Skills Prime, organised by the Ministry of Information and Technology (MeitY) and NASSCOM.
Infrastructure development is another key aspect. States are leveraging technology parks, special economic zones and electronic manufacturing clusters to offer plug-and-play facilities, ready-built office spaces, and robust digital connectivity. For instance, Tamil Nadu implemented the TIDEL Neo initiative to establish mini IT parks in tier-2 and tier-3 cities such as Thanjavur, Salem, Vellore, etc., to provide ready-to-occupy office spaces for organisations to set up their GCC hubs. Such investments reduce setup timelines and enable companies to scale operations quickly.
The growing focus on tier-2 and tier-3 cities by state governments signals a new phase in India’s GCC journey. By developing talent, infrastructure and business ecosystems beyond established metropolitan hubs, states are creating new centres of economic growth while offering companies access to untapped talent and lower operating costs. This decentralised approach could play a key role in ensuring the benefits of India’s GCC boom are shared more widely across the country.
