As global companies expand their presence in India, state governments are stepping up efforts to position themselves as leading destinations for high-value global capability centers (GCCs).
India’s GCC ecosystem is undergoing a major shift. Once focused on cost savings, these centres are now becoming hubs for innovation, handling functions such as artificial intelligence, R&D, cybersecurity, product engineering, and advanced analytics. “India’s rise as a global knowledge hub has accelerated with the growth of global capability centres (GCCs),” the report noted.
This transformation has triggered strong competition among states, with governments offering targeted incentives to attract multinational firms. These include capital subsidies, payroll support, faster regulatory approvals, and improved infrastructure aimed at high-value technology investments. “Once seen largely as cost-arbitrage back offices, GCCs now operate as integrated global hubs driving R&D, artificial intelligence, product engineering, advanced analytics, cybersecurity and intellectual property (IP) creation,” the report said.
States across India have announced ambitious targets. Karnataka aims to attract 500 new GCCs by 2029, while Maharashtra is targeting 400 GCCs and 400,000 skilled jobs under its 2025 framework focused on AI and machine learning. Telangana, led by Hyderabad, is targeting 120 new GCCs by 2026.
Meanwhile, Tamil Nadu is aligning GCC growth with its R&D ecosystem through land and tax incentives. The Delhi NCR region is also gaining traction, leveraging policies from Haryana and Uttar Pradesh to attract large-scale investments with subsidies and quicker approvals.
At the national level, reforms such as digitised approvals and labour code changes have improved ease of doing business, making it easier for global firms to operate in India. Combined with state-level initiatives, these measures are strengthening India’s position as a long-term innovation base.
India’s strong talent pool remains a key advantage, supported by upskilling in AI, data science, and cybersecurity. Analysts expect the GCC sector to reach nearly $100 billion by 2030.
Looking ahead, GCC growth is expected to expand beyond major cities into Tier-2 and Tier-3 locations, spreading economic opportunities more widely. The shift also signals a broader change, with India moving from a traditional outsourcing hub to a key player in global innovation and product development.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
