Bengaluru: Karnataka state has launched a draft policy aimed at doubling its count of Global Capability Centres (GCCs) to 1,000 and creating 350,000 new jobs by 2029. This initiative, the first of its kind by any Indian state, was unveiled on September 27 and is designed to attract more foreign companies to establish local offices.
Key incentives outlined in the policy include rent reimbursements, exemptions from electricity duties, and assistance with patent fees, tailored to encourage GCCs to increase their employee base. The government aims to generate an economic output of $50 billion through these new offices by the target year.
GCCs have evolved from being low-cost outsourcing hubs to integral support systems for global firms, assisting in various functions such as daily operations, finance, and research and development. Currently, more than 1,700 GCCs operate in India, employing over 1.9 million people.
A recent report by Nasscom and Zinnov predicts that the number of GCCs could increase to between 2,100 and 2,200 by 2030, employing an estimated 2.5 to 2.8 million individuals.
The Karnataka government’s policy also aims to promote the establishment of operations in cities beyond the tech capital of Bengaluru, targeting locations such as Mangaluru, Mysuru, and Tumakuru. Additionally, the plan includes the creation of three new tech parks, funding for skills courses, and grants for research projects, particularly those focusing on artificial intelligence.
The draft policy is open for public inputs until November 11.
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