India’s Policy-Driven Rise of Global Capability Centres

India’s status as the world’s favourite destination for global capability centers (GCC) is not a chance; this is a sustainable and strategic policy push. In the last decade, India has transformed into a global destination for digital strategy and innovation. Enterprises have changed from low-cost IT outsourcing center to offshore development centers.

The development of global capacity centers (GCC) in India has been at the center of this change. This is the direct result of visionary policy steps by both the Government of India and the active state administration.

In 2014, India’s GDP was $2.04 trillion. At that time, India’s digital and global distribution capabilities were underdeveloped, which were interrupted by infrastructure deficiencies and regulatory obstacles. Growing forward in 2023, India’s GDP increased to $3.73 trillion due to digital India, ease of doing business reforms, and PLI schemes such as policy implementation. India is expected to reach the GDP of $7 trillion by 2030, and by 2026, the GCC is expected to contribute more than 110 billion dollars.

India has now become a home to 45% of all global GCCs, which not only provides cost benefits but also leadership in AI, Analytics, Research and Development, Stability Platforms and cybersecurity. Due to working closely with the policies of the centre and the state, India is established as a strategic lever for GCC ecosystem enterprise development.

Central Government Policies: Construction of a scalable GCC Ecosystem

The federal government of India has laid the foundation of a rich India GCC policy that enables innovation, digital scale, and cost-effective distribution directly. Here it is described:

Central Policy Initiative	Impact on Global Delivery Centres (GCCs)
Digital India Mission	High-speed digital infrastructure across cities and rural areas enabled remote-first GCC models.
Startup India & Industry-Academia Linkages	Accelerated innovation partnerships between GCCs and Indian deep-tech startups
Ease of Doing Business (Ranked #63 globally)	Reduced regulatory overhead, single-window clearance for global company entry
PLI Schemes (Electronics, IT Hardware)	Encouraged R&D-led GCCs to build and test tech prototypes in India
FDI Liberalisation (100% in IT-BPM)	Made India one of the easiest markets to enter for global firms setting up captives.
India Stack and UPI Ecosystem	Enabled platform-based services innovation across BFSI, retail, and healthcare GCCs
National Skill Development Mission	Created a digitally skilled workforce tailored for GCC 3.0 requirements.

These policy steps reduced the time taken in installation, freed global operations, and promoted confidence in India’s digital rule.

State-level Policy: Local Innovation & Talent Strategy

Central policies prepared the base, while the state governments provided differential values: infrastructure, skill development, tax exemption, and startup collaboration.

State	Infra Incentives	Talent & Skilling	Ease-of-Operations Policies	Policy Year	Estimated Investment/Incentive
Karnataka	Beyond Bengaluru IT Policy: Global Innovation Alliance for GCC expansion	AI/ML upskilling via KDEM, CoEs in AI & Cybersecurity	Single-window clearance, R&D grant schemes	2020–2023	₹2,500 Cr+ allocated for tech infra
Telangana	T-Hub, WE Hub, and Tier-2 GCC infra in Warangal & Karimnagar	Telangana Academy for Skill and Knowledge (TASK)—AI/Cloud focus	ICT Policy 2021, flexible labour, and tax incentives	2021–2024	₹1,900 Cr+ across ICT parks and startups
Maharashtra	Fintech and Digital Banking hubs in Mumbai & Pune	NSDC-backed skilling for BFSI and analytics	Stamp duty waivers, plug-and-play co-working infra	2022	₹3,000 Cr fintech cluster in BKC + Pune
Tamil Nadu	New IT parks in Hosur, Coimbatore, and Trichy	TN Skill Development Corp—Semiconductor & AutoTech skilling	Capital subsidies, rental reimbursement for IT space	2021	₹1,400 Cr in Hosur-Coimbatore corridor
Uttar Pradesh	IT Cities in Noida, Greater Noida, and Lucknow with GCC focus zones	Digital skills via UP Skill Development Mission	100% land registration waiver for GCCs in IT sector	2022	₹1,200 Cr in Noida IT hub expansion
Gujarat	GIFT City: India’s first IFSC with fintech sandbox for GCCs	Fintech upskilling, AI & Blockchain startup mentorship	10-year tax holiday in SEZs for tech/GCCs	2020	₹1,800 Cr+ investment in GIFT City Phase 2

These localised incentives reduce operating costs, improve access to talent, and enable the firms to diversify the metros.

Policy Flywheel Effect: From Cost to Capacity

The success of GCC in India lies in a self-righteous policy. It acts as follows:

Ease of digital infrastructure entry: The government creates strong digital highways and reduces commercial friction.
Skill development and educational reforms: Talent development through public-private cooperation—AI, cybersecurity, and Engineering Skills are built in the college courses.
Startup and Innovation Culture: GCC, SAAS, Fintech, IOT and use Indian startups for co-consciousness in clean technology.
Safe data structure: The Digital Personal Data Protection Act (2023) strengthens enterprise confidence, which promotes GCC in BFSI and Health Services.
Platform-based changes: With these components, digital changes develop into the engine with GCC backend support.

This cycle flourishes and establishes India not only as a cost-out destination but also as a global innovation partner. This development is reflected in the development of platform-based GCCs in areas such as AI, Analytics, Cloud Transformation and cybersecurity across India.

GCC Development in India

In India, GCCs are now providing services to more than 80 countries, including investment from Japan, Germany, and the Middle East.
More than 65 new GCCs were established alone in 2023, of which 55% of semacons were established in emerging areas such as sustainability and electric vehicles.
Average cost savings for global enterprises to be established in India: Tier-2 cities such as Indore, Coimbatore, and Bhubaneswar are showing a 30–35% compound annual growth rate (CAGR) in GCC workforce expansion.
In 2024, the total number of employees in GCC reached 20 lakhs, which is an increase of 14% year-on-year.
70% of the GCC now has embedded AI, analytics, and cloud-first functions in BFSI and retail.
Germany, UAE and Japan are the fastest-growing investors in India’s GCC Ecosystem.
India’s knowledge services export (including GCC services) reached $28 billion in FY 24, which is estimated to cross $40 billion by financial year 26.

Policy to GCC Value Chain

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Each policy lever activates a basic capacity:

Digital infrastructure enables distance operations.
The readiness of talent ensures that GCC not only implements but also innovates.
Local incentives help firms expand in tier-2 cities.
The enterprise innovation is added back to economic production.

This price chain is getting stronger from year to year, leading to a global competitive edge for India. This series reflects India’s long-term value creation models for global capacity centres: a mixture of lectures, costs, and digital thinking.

GCC's Policy-Making Future

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The Digital Personal Data Protection Act (2023) will make India a safe shelter site for a safe cloud-based GCC.
The upcoming AI policy structure will enable large-scale AI model training and analysis centers within the GCC.
India’s National Quantum Mission (NQM) will open opportunities for research and development-focused GCC in semiconductor and quantum computing.
States like Rajasthan and Assam are joining the GCC map with new IT regions and incentives.

Conclusion

India’s policy structure provides an unmatched edge for any enterprise that wants to take a new look at its operations or expand the global distribution model. The journey of India is based on progressive, digital-supportive, and enterprise-supportive policies until the global capacity centers become the center of global delivery centers. These policy steps, which are supported by dynamic state-level initiatives, have made India a natural option for global companies to build innovation, stability, and platform capabilities.

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Inductus GCC as a GCC service provider, sees India not only as a destination but also as a transformative partner. With correct policies, talent, infrastructure, and innovation coordination, India’s GCC ecosystem is ready for the future—laudable, safe, and globally aligned.

frequently asked questions (FAQs)

Why is GCC growing fast in India?

GCC is growing fast due to policy support, availability of talent, and economic cost profit.

How do government policies help GCC?

Government policies provide incentives such as fast installation, reduction in compliance costs, and land, infrastructure, and tax exemption.

Which Indian cities are most suitable for GCC?

Cities that are emerging (Tier-2 cities) like Bengaluru, Hyderabad, Pune, Chennai, Coimbatore, and Indore are the suitable ones for the GCC.

In which areas is the GCC of India serving?

GCC in india is serving in BFSI, Retail, Health Service, Automotive, Fintech, AI and cybersecurity.

Can startups collaborate with GCC in India?

Yes. Many GCCs innovate with Indian startups through accelerators and sandboxes.

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Aditi

Aditi, with a strong background in forensic science and biotechnology, brings an innovative scientific perspective to her work. Her expertise spans research, analytics, and strategic advisory in consulting and GCC environments. She has published numerous research papers and articles. A versatile writer in both technical and creative domains, Aditi excels at translating complex subjects into compelling insights. Which she aligns seamlessly with consulting, advisory domain, and GCC operations. Her ability to bridge science, business, and storytelling positions her as a strategic thinker who can drive data-informed decision-making.