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The Confederation of Indian Industry (CII) has unveiled a Model State Policy on Global Capability Centres (GCCs), a comprehensive blueprint designed to guide states across India in attracting, enabling and scaling the next generation of global enterprise hubs. 

This policy framework comes at a crucial moment when India is transitioning from being a global delivery destination to an innovation and leadership capital for multinational corporations. The new model policy provides states with a pragmatic, forward-looking and investment-friendly roadmap that complements national efforts but also builds distinct advantages at the local level.

Commenting on the policy, Chandrajit Banerjee, Director General, CII, said: “The extraordinary rise of GCCs in India has been one of the most important developments in our economic journey over the past two decades. But to sustain leadership and expand our share of global value chains, states must step up with clear, competitive, and innovation-oriented policies.” 

“The Model State GCC Policy released by CII today offers a ready framework to guide this effort – helping states design their own strategies, accelerate GCC growth beyond the metros, and generate large-scale high-quality jobs. This is about ensuring that India’s knowledge capital is inclusive, future-ready, and globally benchmarked,” he added.

The policy assumes significance because nearly 95% of India’s 1,800-plus GCCs are currently concentrated in just six Tier-1 cities. While these metros have been the engines of growth, future expansion will depend on the ability of states to unlock potential in Tier-2 and Tier-3 cities. The CII model policy focuses on enabling these emerging hubs, diversifying the geographic footprint of GCCs, and building state-level ecosystems that are attractive to global enterprises.

The release of this policy is intended to provide states with actionable measures across infrastructure, incentives, regulatory frameworks and talent development, with the ultimate objective of creating seamless, resilient, and globally competitive ecosystems. Importantly, the model policy has been shaped by best practices from successful state-level initiatives in India, combined with global benchmarking of leading GCC destinations.

The key recommendations of the Model State GCC Policy are:

• The policy calls for the establishment of State-level Facilitation Cells dedicated to GCCs, serving as a single point of contact for investors and enterprises. These cells would streamline approvals for land, utilities, and infrastructure, while also acting as investor support desks to resolve issues in real time. Such dedicated structures will not only reduce transaction costs but also enhance the confidence of global firms in engaging with state authorities.

• The policy recommends targeted fiscal and regulatory incentives for GCCs that go beyond generic IT/ITES schemes. These include viability gap funding for integrated infrastructure projects such as smart mobility and transit corridors, time-bound tax holidays, and exemptions on customs duties for imported R&D equipment and technology tools. The model proposes that in the initial phase, states may identify and develop 8–10 priority hubs, chosen through transparent challenge-based selection processes, ensuring competitive site allocation and efficient clustering of facilities.

• The policy highlights the need for dedicated digital infrastructure investment at the state level, including compute subsidies for AI/ML model training, government-backed service-level agreements to guarantee uninterrupted connectivity, and incentives for setting up edge data centres in Tier-2 and Tier-3 locations. By embedding digital backbone elements into local infrastructure policy, states can ensure that GCCs in emerging cities operate at par with global hubs.

• The policy encourages states to launch joint accelerator and venture-building programmes that connect GCCs with local start-ups and research institutions. This approach will allow multinational enterprises to co-create solutions in frontier technologies such as quantum computing, ESG-aligned applications like digital twins for energy efficiency, and enterprise SaaS with export potential. Grants and proof-of-concept funding mechanisms should be established to fast-track these collaborations.
• The model proposes that green infrastructure should become a standard in GCC development at the state level. Capex support should be offered for facilities certified under internationally recognised standards such as LEED or GRIHA, ensuring low-carbon, resource-efficient operations. This would not only align with India’s sustainability goals but also make state ecosystems more attractive to ESG-conscious global investors.

• The policy recommends that states should develop locational capability by integrating housing, smart mobility, and civic infrastructure into their GCC planning frameworks. This means convergence of multiple state schemes—whether in affordable housing, multi-modal transport, or smart city projects—to create holistic “Champion Cities” where GCCs can thrive alongside strong quality of life indices for professionals and their families.

• The model advocates the creation of state-specific data security and IP facilitation frameworks aligned with the Digital Personal Data Protection Act but tailored to local conditions. Sandbox environments, accelerated intellectual property approvals, and sector-specific data trust models are suggested to give states an edge in hosting data-intensive GCCs such as those working in AI, fintech, or healthcare analytics.

• The policy calls for incentive support for high-performance computing clusters and federated compute pools under public-private partnership models. States should co-invest in these digital assets alongside industry, ensuring that their cities are not only competitive today but also future-proofed for tomorrow’s technology demands.

• The policy stresses the importance of branding and outreach by states in partnership with CII. This includes developing city-specific GCC value propositions, participating in international roadshows, and building sector-focused campaigns targeting underpenetrated markets such as Japan, the Nordics, and the Middle East. The aim is to ensure that state-level ecosystems are visible and attractive to global decision-makers, not just reliant on national branding campaigns.

• The model recommends the institutionalisation of continuous monitoring and feedback mechanisms so that states can adapt to the fast-changing needs of global enterprises. A multi-tier architecture involving state nodal departments, industry partners, and innovation agencies can ensure that regulatory issues are addressed promptly, incentive schemes are evaluated in real time, and course corrections are swiftly implemented.

CII emphasised that while the national framework provides the overarching direction and vision, it is the states that will ultimately determine how quickly and effectively India can scale up GCCs in terms of size, scope, and sophistication. 

“States today are the frontline drivers of India’s competitiveness. With this model policy, we are equipping them with a toolkit to attract global corporations, nurture local ecosystems, and ensure balanced and sustainable growth of GCCs across the country,” Banerjee said.