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Beyond Borders- How Indian States are Competing for GCCs
Beyond Borders- How Indian States are Competing for GCCs

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Global Capability Centres (GCCs) in India are increasingly becoming vital hubs for digital transformation, innovation, and skilled employment. As Indian states compete to attract these centers of excellence, their policies are key to shaping the GCC landscape and driving regional economic growth.

Here’s a look at how six Indian states : Karnataka, Uttar Pradesh, Madhya Pradesh, Telangana, Gujarat, and Andhra Pradesh are positioning themselves through dedicated GCC policies in 2024–2029, highlighting their visionary goals, incentives, infrastructure strategies, and unique features:

Karnataka: Leading the GCC Ecosystem Expansion

Karnataka pioneered dedicated GCC policies, aiming ambitiously to attract 500 new GCCs by 2029 and create around 350,000 jobs, targeting economic output worth $50 billion. The policy focuses not only on Bengaluru but also on expanding GCCs “beyond Bengaluru” to diversify geography and reduce congestion. Key incentives include capital, operational, and payroll subsidies, fast-track approvals, and support for innovation labs and upskilling. Infrastructure emphasis is on cluster development and regional connectivity. Unique initiatives such as global innovation districts and dedicated support teams underline Karnataka’s goal to maintain its leadership in India’s GCC space.

Uttar Pradesh: Strategic Growth with National Security Alignment

Uttar Pradesh’s GCC policy is distinct for integrating economic growth with national security considerations. The state offers significant financial incentives, including land subsidies (30–50%), substantial operational expenditure support of up to ₹40–80 crore annually, payroll subsidies, and fresher recruitment bonuses. The focused infrastructure development includes talent pools, special economic corridors, and integrated GCC parks. It also highlights employment localization, prioritizing UP-domicile candidates, fostering inclusive growth tied to a security-aligned economic framework.

Madhya Pradesh: Emerging GCC Powerhouse with Talent and Ease-of-Business Focus

Madhya Pradesh plans to transform into a $5 billion GCC hub by 2030, leveraging its central location and affordable talent pool. The state emphasizes digital transformation, ease of doing business, and fast setup timelines. Payroll subsidies are generous, up to ₹1 lakh per month for relocated talent, along with capital expenditure, research and development, and upskilling supports. Infrastructure efforts enhance connectivity through roads, air, and city development. The policy also integrates dedicated facilitation teams and ties with education sectors to boost human capital development and promote inclusive growth.

Telangana: Innovation and Sectoral Diversity

Telangana focuses on innovation, rapid business continuity, and access to a skilled workforce for its GCC policy. The state’s hallmark is its streamlined processes through TS-IPASS, offering tax benefits and tailored incentive packages. Infrastructure efforts aim at tier-2 city growth and improved connectivity, supporting sectoral diversity spanning healthcare, BFSI (Banking, Financial Services, and Insurance), and automobile industries. Telangana’s rapid clearance mechanisms and diverse sectoral focus position it as a flexible GCC destination.

Gujarat: Eco-Friendly, Emerging Technologies, and Global Standards

Gujarat’s 2025–2030 GCC policy aims to establish the state as a global GCC hub with an eco-friendly approach. The policy pushes emerging sectors such as AI and R&D, supported by fiscal incentives, infrastructure development in 5G and cloud technology, and regulatory facilitation. Gujarat emphasizes green energy leadership and pro-business governance to attract robust investments. Their vision includes concerted skill initiatives and adherence to global safety and operational standards, targeting over ₹10,000 crore in investments and generating 50,000+ jobs.

Andhra Pradesh: Inclusive Digital Economy and Hybrid Workspaces

Andhra Pradesh’s GCC policy aligns with its Swarna Andhra Vision 2047, placing a strong focus on becoming a premier global IT and GCC hub. Incentives cover direct financial support, infrastructure models catering especially to MSMEs, IT parks, and hybrid workspaces. The policy fosters a three-tier infrastructure approach that balances co-working spaces and IT campus developments with a hybrid workspace vision to support flexible work culture and digital economy inclusion. Human capital drive and regional innovation ecosystems are integral to Andhra Pradesh’s GCC strategy.

States

Policy Period

Vision

Key Incentives

Infra Focus

Unique Features

Job/Investment Targets

Karnataka

2024–2029

Make Karnataka a global GCC leader, focus “Beyond Bengaluru”, create $50B output

Capital, Opex & Payroll Subsidies; fast-track clearances; upskilling

Cluster development, “Beyond Bengaluru” initiative, connectivity

Global Innovation districts, Regional dispersion, dedicated support teams

500 new GCCs, 3.5 lakh jobs by 2029

Uttar Pradesh

2024 onwards

Attract global investments, strategic depth for national security

Land subsidy (30–50%); Opex: 20% cost (upto ₹40–80Cr annually); Payroll: ₹10–25Cr/year; Recruitment: ₹20,000/fresher

Talent pools, infra corridors, integrated parks

Security-aligned economic policy, focus on UP-domicile employment

Not specified

Madhya Pradesh

2025 onwards

Digital transformation, ease of business, fast setup/support

Payroll sub: up to ₹1L/month for relocated talent; Capex, R&D & upskilling support

Roads, air, logistics, city infra

Dedicated teams for facilitation, partnerships with education sector

Inclusive growth focus

Telangana

Ongoing

Innovation, business continuity, and talent access

Tax benefits, expedited processes (TS-IPASS), tailored packages

Tier 2 infra development, connectivity

Sector diversity (Health, BFSI, Auto), streamlined permissions

Not specified

Gujarat

2025–2030

Global GCC hub, eco-friendly, boost emerging sectors (AI, R&D)

Fiscal, infra, regulatory ease, partnerships, skill initiatives

5G, cloud infra, digital corridors

Green energy leadership, pro-business governance, global standard safety

IT/ITeS, AI, finance target sectors

Andhra Pradesh

2024–2029

Premier global IT and GCC hub, inclusive digital economy

Direct financial incentives; infra model for MSMEs, campuses

Co-working, IT parks, hybrid spaces

Three-tier infra, human capital drive, hybrid workspace vision (IT/GCC Policy 4.0)

Swarna Andhra Vision 2047-aligned

 

These policies are reflective of India’s broader strategy to diversify GCC locations beyond traditional metro hubs like Bengaluru, enabling tier-2 and tier-3 cities to become new growth engines. While all states offer capital, operational, and payroll incentives, nuances such as regional dispersion in Karnataka, security-aligned growth in Uttar Pradesh, and green energy focus in Gujarat showcase regional strengths. Madhya Pradesh’s emphasis on talent relocation, Telangana’s rapid clearances, and Andhra Pradesh’s hybrid workspaces further amplify the diversity and dynamism in India’s GCC landscape.

As these states implement their GCC policies, the competition and collaboration will likely catalyze India’s position as a global leader for GCCs, fostering innovation, employment, and regional development.


Source:

Public announcements and state policies

 


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Sneha Sharma
Sr Analyst

Current Focus Areas: IT Services, AIOps, 5G, Cloud, Project Management. Also specialises in Application Rationalization, Cost Optimization, Benchmarking, Report writing, and Market Research.

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