Uttar Pradesh GCC Policy: A Strategic Move Amid India-Pak Tensions in 2025

The Uttar Pradesh government has introduced the GCC Policy aiming to position the state as a premier destination for multinational corporations seeking to establish innovation and technology hubs. This initiative focuses on attracting investments in sectors such as Artificial Intelligence (AI), data analytics, cybersecurity, and product development.

• Job Creation: The policy targets the establishment of over 1,000 new GCCs, with an anticipated creation of more than 500,000 jobs across Tier-I, Tier-II, and Tier-III cities in Uttar Pradesh.
  
• Infrastructure Development: The state plans to enhance urban infrastructure, including educational institutions, healthcare facilities, and residential areas, to support the influx of professionals and their families.

• Financial Incentives: Investments in GCCs will be eligible for various subsidies, including capital and operating subsidies, land rebates, and exemptions from stamp duties. For instance, it has proposed 30-40% front end land subsidy and 20% subsidy on rent apart from 100% stamp duty waiver for companies who set up GCC in India.
  
• Policy Implementation: The implementation of the policy will be overseen by a dedicated Policy Implementation Unit (PIU) under Invest UP, ensuring effective execution and monitoring of offshore development centers. 

This strategic move aligns with Uttar Pradesh’s broader vision to become a ‘global service center’ helping the state achieve a $1 trillion dollar economy mark.

While Tier-I cities continue to be GCC magnets, rising operational costs, talent saturation, and infrastructure congestion are prompting a geographic shift. The Indian government and corporate investors are now actively exploring Tier-II and Tier-III cities as the next frontier for GCC expansion for digital transformation in business. This decentralization aligns with the federal vision of inclusive growth, encouraging states to compete through proactive policy-making, talent development, and incentives. Uttar Pradesh’s GCC Policy is a prime example of this trend.

States like Tamil Nadu, Gujarat, and Telangana have already implemented targeted IT and innovation policies to attract GCCs, but UP’s scale, location, and labor pool give it a unique edge in this emerging competition.

In an increasingly polarized and uncertain global order, Indian GCCs are no longer just back-end tech hubs, they are becoming strategic assets in national resilience. As India faces renewed friction with Pakistan in 2025 and broader regional volatility, the decentralization of critical digital and operational infrastructure through state-level initiatives like Uttar Pradesh’s GCC Policy takes on new strategic significance.

By distributing technological capacity and captive centers across emerging states, India is reducing its over-reliance on metro-centric ecosystems that are vulnerable to economic, environmental, and geopolitical disruptions. UP’s positioning adds a layer of security and accessibility, enabling global corporations to operate seamlessly even amid regional disturbances. In this context, the Indian GCCs act as force multipliers, strengthening India’s ability to maintain economic continuity, protect data sovereignty, and uphold its role as a trusted global partner in the Indo-Pacific. 

Additionally, as nations increasingly link economic capability with strategic autonomy, UP’s GCC as a service represents not just industrial growth, but a calculated contribution to India’s geopolitical maturity empowering the state to serve both national and international interests in a fragile global landscape.

Uttar Pradesh’s ambitious foray into the GCC landscape is more than a policy, it’s a declaration of intent. As India asserts itself on the global stage, especially amid strategic tensions and technological realignments, subnational initiatives like the UP GCC Policy become critical tools in national capacity building. By attracting high-value, innovation-driven enterprises, UP is shifting the narrative from being just a political base to becoming a digital and strategic powerhouse.

The best way to leverage the GCC policy is to partner closely with Inductus GCC. As one of the most knowledgeable GCC advisory companies, we are setting a precedent for how international firms can scale globally while leveraging state support, robust infrastructure, and a rich talent ecosystem. Its operations in data analytics, digital solutions, and back-office excellence reflect the very essence of what UP’s policy aims to foster, globally competitive, resilient, and future-ready capability centers rooted in India’s emerging geographies.

Uttar Pradesh could very well redefine the map of India’s digital economy, making it not just a participant but a leader in shaping the country’s economic and strategic trajectory.