Naidu’s at it again! Andhra Pradesh CM lays out red carpet for GCCs

With the announcement of the Andhra Pradesh IT & GCC Policy 4.0 (2024-2029), chief minister N Chandrababu Naidu, true to his position as a one of India’s tallest pro-business and pro-investor leader, gave a significant boost to India’s broader ambition of becoming a global hub for GCCs (Global Capability Centres), a sector that is expanding exponentially due to the digital transformation of businesses worldwide.

By offering them a clear infrastructure roadmap, substantial subsidies, and customized incentives, the policy seeks to attract multinational corporations (MNCs) and establish the state as a top destination for GCCs. It aims to create neighbourhood workspaces, co-working spaces, and IT campuses in major cities like Visakhapatnam, Vijayawada, and Tirupati.

Naidu quickly took to Twitter where, in a long post, he wrote, “As we know, the work landscape underwent a shift during the COVID-19 pandemic. With technology readily available to scale… Concepts such as remote work, coworking spaces (CWS), and Neighbourhood Workspaces (NWS) can empower businesses and employees alike to create flexible, productive work environments. Such initiatives can help us strike a better work-life balance as well. We plan to harness these trends to drive meaningful change in AP. The Andhra Pradesh IT & GCC Policy 4.0 is a game-changing step in that direction. One of the key features of the policy is its three-model approach for infrastructure developers, which provides rental and financial subsidies according to the size and scope of the project. Businesses investing in GCCs and IT clusters will also profit from power incentives, recruiting subsidies, and early-bird incentives like rent exemptions in government buildings.”

Long recognised as one of India’s most dependable chief ministers and a key proponent of attracting global investments to Andhra Pradesh, Naidu is in many respects a pioneer in his own right. He was instrumental in turning Hyderabad into a major global centre for information technology during his time as chief minister in the late 1990s and early 2000s, setting the stage for the city to draw in multinational behemoths like Google, Microsoft, and Oracle.

Andhra Pradesh became an early pioneer in India's IT revolution because of his pro-business stance, which has always placed a strong focus on infrastructure-first thinking and ease of doing business.

In October last year, Naidu laid out the red carpet to investors unveiling six policies to foster economic growth, increase exports and create job opportunities. Formulated for the period 2024-2029, the new policies were aimed at mobilising ₹30 lakh crore investments and creating five lakh new jobs over the next five years in manufacturing sector alone.

As MNCs increasingly turn to India for affordable, highly skilled labor, the state’s most recent GCC push is in line with India's larger goal of becoming a global hub for GCCs. Naidu is once again using his vision to establish Andhra Pradesh as a top investment destination with the new IT & GCC Policy 4.0. His administration’s emphasis on improving digital infrastructure, offering investor-friendly policies, and simplifying administrative procedures guarantees that GCCs can successfully launch and grow their businesses.

The state government has traditionally recognized the strong correlation between the IT and GCC sectors and has been committed to fostering growth in both sectors to develop a knowledge-based economy in the state and his policy in many ways mirrors this approach. Indeed, Andhra Pradesh’s strong push is expected to increase India’s global competitiveness in the GCC sector, as multinational corporations look for alternative centers outside the conventional IT locations.

India will house over 620 new Global Capability Centres (GCCs) by 2030, which is over 32 percent of the Forbes 2000 enterprises, according to the ANSR Q3 GCC report, which also added India has over 450 Forbes Global 2000, with around 825 centers, and employs close to 13 lakh professionals. The report highlights that not only large corporations but also mid-market players and smaller enterprises are setting up bases in India.