The GCC Gold Rush Begins!

India is in the middle of a modern-day gold rush—not for precious metals, but for global capability centres (GCCs). As multinational giants search for hubs to anchor their operations, India’s states are fiercely competing against each other, crafting policies to attract the world’s attention.

The stakes are high. According to AIM Research, nearly 49% of GCCs in India are US-headquartered, drawn by the country’s unbeatable combination of tech talent and relatively low costs. It’s not just interest; it’s action. Between 2022 and mid-2024, global firms leased 53 million sqft for GCCs, with many already planning expansions, Cushman & Wakefield reveals.

But who’s leading this race? Karnataka is sprinting ahead, with Bengaluru as its crown jewel. The GCC Policy 2024-2029 is not just a playbook; it’s a bold manifesto to add 500 new GCCs by 2029. The plan? Offer rental reimbursements, tax breaks, and utility subsidies to seal the deal.

The results are staggering. Bengaluru alone added 80 million sqft of prime office space and created 800,000 high-value jobs in just two years. Not content with its lead, Karnataka is investing in three innovation districts—Bengaluru, Mysuru, and Belagavi—and rolling out talent development programs to meet the insatiable demand for skilled professionals.

Telangana’s game plan hinges on Hyderabad, its IT corridor gleaming with world-class infrastructure and progressive policies. By providing expedited approvals, infrastructure subsidies, and tax benefits, the city has become a formidable force in the GCC race.

Maharashtra, on the other hand, looks to bring its dual strengths to the table. While Mumbai leans on its financial ecosystem, Pune rises as an R&D and IT powerhouse. The state is zoning in on dedicated areas for financial and research-focused GCCs, balancing legacy with innovation.

Tamil Nadu is betting on the next frontier—Tier-2 and Tier-3 cities. By nurturing digital innovation and offering subsidies for smaller GCCs, cities like Coimbatore and Trichy are emerging as attractive alternatives.

In the north, Delhi-NCR is leveraging its proximity to power. With a strategic location and an eye on fintech and healthcare-focused GCCs, it offers not just incentives but also access to policymakers—an unbeatable edge for global firms.

This fierce competition is redrawing India’s GCC map. Hyderabad, Chennai, and Coimbatore are no longer just contenders—they’re vibrant markets that combine affordable real estate with government incentives.?

Explore the State of Global Capability Centers in India 2024 report [here].

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