Need to increase set up rate of Global Capability Centre (GCC) in India: Finance Minister

Posted 15 Jul 2025

2 min read

The Finance Minister urged industry & government to work together to boost the setup of GCC and attract more Fortune 500 companies which are yet to establish their presence in India. (On an average 1 new GCC per week was set up in the year 2024)

Status of GCC in India

Global Presence: India hosts >1,800 GCCs, accounting for ~50% of all GCCs worldwide.
Economic Contribution: Direct gross value addition (GVA) is $68 billion (expected to increase to $150-200 billion by 2030).
Employment Figures: Employs ~2.16 million people (expected to reach 2.5-2.8 million by 2030).
Growth Rate: At 11% CAGR over the last 5 years (contributing 1.6% to the national GDP).

About GCCs

It is also known as global in-house centres or captives (GICs).
GCCs are offshore centres established by global firms to provide various services to their parent organisations.
- E.g. IT services, Research and Development (R&D), customer support
They operate within the internal organization structure of the global corporate organization.
Major Drivers in India: Cost efficiency, Digital and Policy Readiness (e.g Smart Cities, Digital India), Talent availability (Highly skilled & cost-effective workforce with English proficiency), Large Consumer Market etc.

Challenges in development of GCCs in India:

Limited availability of skilled workforce (in Tier-II and III cities), Infrastructure gaps (physical and digital connectivity), Complex regulatory structures, cybersecurity threats.

Strategic Interventions Required

Embrace Next-Gen Technologies: e.g. AI, automation, cloud computing etc.
Navigate Geopolitical Complexities: Adopt agile governance models to respond swiftly to complex geopolitical scenarios and resulting regulatory uncertainty.
Redefine Workforce Strategies: Upskilling of talent, adoption of new-age skills and hybrid work models.
Sustainability: Aligning GCCs with environmental, social, and governance (ESG) goals.