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Madhya Pradesh Global Capability Centers (GCC) Policy 2024: A Transformative Vision for Economic Growth
Madhya Pradesh Global Capability Centers (GCC) Policy 2024: A Transformative Vision for Economic Growth

February 7, 2025

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Introduction

Madhya Pradesh is poised to emerge as a premier hub for Global Capability Centers (GCCs) with the launch of its pioneering GCC Policy 2024. Recognizing the transformative impact of GCCs on economic expansion, skill development, and foreign investment, the Government of Madhya Pradesh has curated a comprehensive policy framework to attract multinational corporations (MNCs) to establish their global operational centers within the state.

Strategic Significance of GCCs

Global Capability Centers (GCCs) have evolved beyond their traditional roles as cost-arbitrage entities, now serving as strategic assets for multinational corporations. They drive process optimization, digital transformation, and advanced analytics while fostering research, innovation, and global business excellence. With India already home to over 50% of the world’s GCCs, Madhya Pradesh aims to position itself as a key player in this high-growth sector.

Why Madhya Pradesh?

Madhya Pradesh presents a compelling value proposition for GCCs, offering:

  • Robust IT/ITeS Ecosystem: The state boasts a rapidly growing IT sector, with IT/ITeS exports tripling over the last three years and an impressive annual growth rate of 43%.
  • Skilled Talent Pool: Over 300 engineering colleges produce 50,000+ tech graduates annually, providing a steady supply of skilled professionals.
  • Infrastructure Readiness: 5+ SEZs, 15+ IT parks, and 150+ ESDM units across cities like Indore, Bhopal, and Jabalpur create an enabling business environment.
  • Cost Advantage: Business operations in Madhya Pradesh are significantly more affordable than metro cities, reducing operational costs for GCCs.
  • Business-Friendly Governance: Ranked 4th in the Ease of Doing Business Rankings (2023), Madhya Pradesh offers streamlined regulatory processes, single-window clearances, and investor-friendly policies.

Vision and Objectives

The Madhya Pradesh GCC Policy 2024 aims to:

  • Attract over 50 GCCs and create more than 37,000 direct jobs.
  • Establish the state as a center of excellence for IT/ITeS, advanced analytics, R&D, and digital transformation.
  • Foster economic growth by facilitating foreign investment, infrastructure development, and employment generation.
  • Strengthen Madhya Pradesh’s position as a hub for industry-specific GCCs catering to sectors such as automotive, pharmaceuticals, logistics, textiles, and aerospace.

Incentives and Policy Framework

1. Fiscal Incentives

The policy offers a range of financial incentives to GCCs, including:

  • Capital Expenditure (CAPEX) Subsidy: Up to ₹30 crore for eligible GCCs establishing operations in Madhya Pradesh.
  • Payroll Subsidy: Covering up to 50% of employee salaries for the first year, ensuring financial support for high-value talent acquisition.
  • Patent Assistance: Up to ₹30 lakh per international patent, incentivizing innovation and intellectual property development.
  • Research & Skill Development Grants: Financial support for upskilling employees and research initiatives within GCCs.
  • Internship Support: Internships under the Mukhya Mantri Seekho Kamao Yojana (MMSKY), providing stipends for skill development.

2. Non-Fiscal Incentives

  • Exemptions under the Madhya Pradesh Shops and Establishments Act (1958): Flexibility in working hours and night shifts for women employees.
  • Simplified Compliance Framework: Unified labor law compliance, minimizing administrative burdens for GCCs.
  • Fast-Track Approvals: Single-window clearances for investment proposals and regulatory approvals.

Centers of Excellence and Innovation Clusters

The policy underscores a commitment to research, development, and cutting-edge technological advancements by establishing Centers of Excellence (CoE) for AI & Cybersecurity. These CoEs will be developed under a Public-Private Partnership (PPP) model, with the government covering up to 50% of the project cost (capped at ₹10 crore). Additionally, Innovation Clusters will be established with a government contribution of up to ₹25 crore, fostering collaboration between academia, industries, and GCCs.

Implementation and Governance

The Madhya Pradesh State Electronics Development Corporation Limited (MPSeDC) will serve as the nodal agency for policy execution. A dedicated Policy Implementation Unit (PIU) will oversee the allocation of incentives, project approvals, and compliance monitoring.

Conclusion

The Madhya Pradesh GCC Policy 2024 is a game-changer, offering a globally benchmarked ecosystem that aligns with India's vision of becoming a $110 billion GCC market by 2030. With a strategic focus on innovation, infrastructure, and incentives, the policy is set to unlock immense potential, making Madhya Pradesh a preferred destination for multinational corporations seeking to establish or expand their GCC operations in India.

 


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