India’s GCC Sector Gains Momentum as States Unveil Pro-Business Policies
States like Telangana and Uttar Pradesh are accelerating India’s GCC growth with proactive policies, streamlined approvals and ambitious job-creation targets, driving regional and national transformation.
In a bid to solidify its position as a global hub for innovation and enterprise, India is witnessing a surge in state-driven initiatives to attract and nurture Global Capability Centres (GCCs). According to a recent Nasscom blog, states are building bespoke ecosystems that combine ease of business, infrastructure strength and futuristic skills to fuel the growth of GCCs.
The top GCC hubs in India include Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR, Mumbai and Pune, while emerging locations like Coimbatore, Ahmedabad and Thiruvananthapuram are gaining prominence.
These centres have become crucial to global business strategies, driving digital transformation, research and development, and specialised functions. India’s GCC sector is expected to grow, with projections estimating 2,400 GCCs, generating US$110 billion in revenue and employing more people in the coming years.
States are playing a crucial role in fuelling India’s GCC momentum, with policies tailored to attract investments and drive growth in the sector. For instance, Telangana’s TS-iPASS ensures faster clearances and smoother approvals for new centres, while Uttar Pradesh’s GCC Policy 2024 aims to attract 1,000 GCCs and create 500,000+ jobs.
Tamil Nadu is promoting Chennai as a GCC capital with payroll subsidies and a tiered incentive model. Maharashtra is drafting a dedicated GCC policy, and Gujarat has unveiled an ambitious GCC Policy 2025-30 targeting 250+ GCCs and ₹10,000+ crore in investments.
The growth of GCCs in India has been a story of both concentration and diversification, with Tier-1 cities like Bengaluru and Hyderabad driving the GCC ecosystem, while emerging cities like Pune, Coimbatore and Jaipur are gaining prominence due to lower operational costs and improved infrastructure. These cities offer a significant cost advantage, with operating expenses up to 30-40% lower than Tier-1 cities, and lower attrition rates.
GCCs in India are becoming hubs of innovation, collaboration, and expertise, driving critical functions like technology development and customer service. They are equipping themselves to navigate a dynamic landscape, adopting proactive measures to address talent acquisition and development, emerging technologies, regulation, and concentration risks.
With the Indian government providing various incentives and initiatives to attract foreign investment, GCCs are poised to play an even more significant role in shaping India’s economic success.
