The Confederation of Indian Industry (CII) has unveiled a model state policy aimed at accelerating the growth of Global Capability Centres (GCCs) across India. According to the report, expanding the GCC footprint beyond existing tier-1 cities could contribute an additional $200 billion to India’s economy by 2030.
GCCs—offshore units established by multinational corporations to handle strategic functions—have become a critical part of India’s tech and services ecosystem. However, 95% of the 1,800 GCCs currently operating in India are concentrated in just six tier-1 cities.
New Policy Framework for Distributed Growth
The CII’s new model policy encourages Indian states to take a more active role in attracting and nurturing GCCs. Key recommendations include:
Establishing fast-track facilitation cells
Designing fiscal incentives and subsidies
Investing in high-performance digital infrastructure such as HPC clusters and data centres
Developing housing, transport, and civic amenities near upcoming GCC zones
These measures aim to make tier-2 and tier-3 cities viable innovation hubs, thereby democratizing India’s digital economy footprint and unlocking new employment opportunities.
$200 Billion Economic Opportunity
According to estimates, India could host more than 4,200 GCCs by 2030, employing 4.5 million people. Industry revenue from this segment is projected to grow from $50 billion in FY24 to $110 billion in FY30. However, this growth hinges on the ability to scale operations beyond current urban centres and build infrastructure that supports high-end, tech-driven services.
Chandrajit Banerjee, Director General of CII, called the rise of GCCs “one of the most defining trends in India’s economic journey.” He emphasized that clear, competitive, and innovation-driven state policies will be essential for sustaining momentum and maintaining global competitiveness.
A Proven Global Strategy
India has long been the preferred destination for global capability centres, with companies like Microsoft, Google, JPMorgan, Walmart, and Meta establishing large back-office, R&D, and operations hubs in the country. The report points out that with talent availability, cost efficiencies, and a robust tech ecosystem, India is uniquely positioned to expand its leadership in this space.
To help states craft actionable strategies, the CII has also recommended public–private partnerships, collaboration with academic institutions for skill development, and targeted incentives for high-value sectors like cybersecurity, AI, and fintech.
