India is embarking on a strategic initiative to expand Global Capability Centers (GCCs) beyond the traditional top six metropolitan hubs, a move spearheaded by the Ministry of Electronics and Information Technology (MeitY).
This concerted effort aims to foster broader inclusion and enhance economic resilience across the nation by decentralizing GCC operations.
Historically, over 90% of India’s GCCs have been concentrated in major cities such as Bengaluru, Hyderabad, Chennai, Mumbai, the National Capital Region (NCR), and Pune. To address this imbalance and unlock the vast potential of other regions, the government is actively encouraging the expansion of GCCs into Tier-II and Tier-III cities. Emerging locations identified for this growth include Ahmedabad, Indore, Thiruvananthapuram, Kochi, Kolkata, Coimbatore, Bhubaneswar, and Jaipur.
These burgeoning cities offer a compelling proposition for GCCs, providing significant cost advantages, improved digital infrastructure, an enhanced quality of life for employees, and attractive government incentives. MeitY’s strategy involves robust collaboration among central and state governments, industry stakeholders, and academic institutions. The goal is to accelerate the expansion of the sector and promote local talent development, leveraging India’s extensive pool of STEM graduates.
This decentralization is viewed as a crucial strategic move to diversify the industry footprint and distribute economic opportunities more equitably across the country, ultimately enhancing India’s overall resilience and capacity for innovation.
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