India’s Global Capability Centre (GCC) ecosystem is experiencing rapid growth, with the number of centres expected to increase from 1,700 in 2024 to 2,100 by 2030. While US-based GCCs have traditionally dominated, non-US GCCs are expanding at an impressive CAGR of 6.8%, nearly double that of their US counterparts. This surge underscores India’s growing importance as a global hub for business services.
Japanese companies play a crucial role in this expansion, accounting for approximately 5% of India’s GCC ecosystem, with a strong presence in automotive, electronics, and manufacturing. Historically, Japanese firms leveraged GCCs in India primarily for operational support. However, there is a clear shift towards research & development (R&D) and digital transformation. For example, Toyota’s GCC in Bengaluru is advancing EV battery technologies, reflecting a broader innovation-driven approach among Japanese firms.
Key Japanese Companies Driving India’s GCC Growth
MUFG Bank
MUFG Global Service (MGS) operates from Bengaluru and Mumbai, supporting MUFG Bank’s worldwide operations. As Japan’s largest bank, MUFG offers strategic advisory, liquidity solutions, and risk management services, reinforcing global commerce through its financial expertise and stability.
Hitachi Energy India
Celebrating 75 years in India, Hitachi Energy has significantly contributed to nation-building initiatives. Its manufacturing locations in Gujarat and Bengaluru serve power utilities, renewable energy, and transportation sectors. The company pioneered high-voltage direct current (HVDC) technology, supporting over half of India’s HVDC links and 90% of its metro rail systems.
Rakuten India
As a global product and innovation centre, Rakuten India supports e-commerce, fintech, and AI-driven solutions. Located in Bengaluru, it contributes to Rakuten’s services such as Rakuten Ichiba and Rakuten Ready, making it the second-largest technology hub outside Japan.
Pioneer
Pioneer’s R&D expansion into India marks its first major venture outside Japan. With centres in Gurugram and Bengaluru, the company is developing Vision AI for mobility solutions, enhancing safety through real-time perception, ADAS, and autonomous driving capabilities.
Socionext
A leading semiconductor solutions provider, Socionext has expanded its presence in Bengaluru, focusing on system-on-chip (SoC) development for applications like autonomous driving and high-performance computing. Its expertise enhances efficiency while reducing power consumption and costs.
Renault Nissan Technology and Business Centre India (RNTBCI)
As part of its RNTBCI 3.0 initiative, the company has established a new centre in Bengaluru dedicated to software-defined vehicles and AI. This facility integrates engineering and IT teams to enhance vehicle features and operational efficiency.
Anritsu India
A subsidiary of Anritsu Corporation, Anritsu India provides advanced test and measurement equipment. Its Bengaluru facility supports sales, R&D, and global technical services for next-generation networking and quality assurance solutions.
Toyota Motor Corporation
Toyota has strengthened its presence in Bengaluru through Toyota Kirloskar Motor (TKM) and its Centres of Excellence (CoE), focusing on skill development and local engineering capabilities.
Fujitsu Research of India
Operating in Bengaluru and Hyderabad since 2022, Fujitsu Research is driving digital transformation through AI, ML, and quantum computing research.
Shindengen India
Specialising in electrical components, Shindengen India has committed ₹254 crore in Karnataka, further reinforcing India’s role as a strategic investment destination.
As Japanese companies continue expanding their GCC operations in India, the partnership between the two nations is entering a new era of innovation and collaboration.
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