Japanese companies expand India GCCs into AI, R&D and global technology roles

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Japanese firms deepen India GCC operations with focus on AI and innovation
Japanese firms deepen India GCC operations with focus on AI and innovation

India’s role in the global operations of Japanese businesses is evolving, with more than 100 Japanese companies now running Global Capability Centres (GCCs) in the country. According to a July 2026 report by Deloitte India, Japan is the largest contributor to India’s GCC ecosystem from the Asia-Pacific region, accounting for around 5–6% of all centres.

These GCCs are moving beyond traditional support work into product research and development, AI, engineering, cloud, fintech and digital manufacturing. Their growing responsibilities reflect a shift towards building capabilities in India for global products and operations.

Japanese GCCs expand across sectors

Japanese companies have established centres across technology, financial services, healthcare, automotive and engineering.

In pharmaceuticals, Astellas Pharma and Takeda have set up GCC and innovation capabilities in Bengaluru to support digital, technology and R&D work.

In financial services, MUFG Global Service, established in 2020, has expanded across Bengaluru, Pune and Mumbai. Its workforce grew from 90 employees in FY2020 to 1,700 in 2025, with a target of 3,000 by the end of 2027. Its operations cover technology, credit, KYC and financial services. Nomura supports global technology, research and operations from India, while Mizuho has added a Pune GCC to its presence in Mumbai and Bengaluru.

Technology companies NEC and Fujitsu operate global development, delivery and technology support centres in India. Rakuten India focuses on e-commerce, fintech, AI and data capabilities.

In automotive and engineering, Denso supports global automotive technology operations, while Pioneer is expanding its Bengaluru GCC from 100 to 200 employees for software and product development. Toyo Engineering and MODEC have also established a 100,000 sq ft GCC in Bengaluru, with plans to grow it to 750 employees.

Why India is attracting Japanese businesses

Japan’s long-term demographic and talent challenges are driving companies to explore India’s large STEM workforce, engineering skills and digital capabilities.

Deloitte estimates that India’s GCC sector could generate US$470–600 billion in net economic impact by FY2030, contribute 2.2–2.8% to GDP and create 20–25 million jobs.

Beyond Bengaluru and Mumbai, Ahmedabad, Jaipur, Coimbatore, Kochi and Indore are gaining traction as GCC destinations due to specialised talent, competitive costs and state-level policies.

Stronger India-Japan economic ties

In 2025, both countries set a target of JPY 10 trillion in Japanese private investment in India over the next 10 years. Cooperation has also expanded across AI, digital partnerships, semiconductors, economic security and strategic technologies.

What comes next?

The next phase of Japanese GCC growth may depend on the responsibilities these centres take on, rather than simply their number. As companies expand AI, engineering, analytics, cloud, product development and R&D, India could play a larger role in their global technology and business operations.

Also read: Viksit Workforce for a Viksit Bharat

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