India plans to launch a national policy for Global Capability Centres (GCCs) this year to streamline regulatory processes. The framework aims to simplify approvals and encourage R&D, potentially helping India reach a target of 5,000 centers by 2030.
The Indian government is preparing to introduce a unified national policy for Global Capability Centres (GCCs), aiming to simplify the operational environment for these international business hubs. With over 2,100 GCCs already operating in the country and employing more than 2.3 million professionals, the sector has become a major contributor to India's services exports, generating nearly $100 billion in annual revenue. The new framework, expected to be finalized within this year, follows an initial announcement in the 2025-26 Union Budget.
Simplifying Regulatory Hurdles
Currently, companies setting up or expanding GCC operations in India often navigate a complex regulatory environment, sometimes requiring over 30 separate approvals from various central and state departments. To address this, the proposed policy includes a single-window clearance mechanism intended to significantly reduce administrative delays. Additionally, the government is considering the use of digital lockers for business entities, allowing firms to store and share essential documents through a centralized digital system. This would eliminate the need for repeated submissions, improving the speed of project implementation and operational efficiency.
Expanding Beyond Major Hubs
While traditional tech hubs like Bengaluru, Hyderabad, and Chennai currently dominate the GCC landscape, the new national policy seeks to encourage growth in Tier-II cities. By developing necessary infrastructure in these regions, the government hopes to reduce the operational costs and talent pressure often seen in the primary metros. The policy focus is shifting away from direct fiscal incentives, which are typically managed by individual states, toward creating an enabling environment that supports long-term business sustainability.
Focus on Higher-Value R&D
The strategy also emphasizes a move toward higher-value activities. Many existing GCCs in India initially began as back-office or IT support centers. The government aims to incentivize a transition toward core research and development, complex engineering, and product innovation. By fostering an ecosystem that supports intellectual property creation and advanced technology services, the policy aims to elevate the quality of work performed by Indian centers within the global operations of multinational corporations.
Future Growth and Next Steps
An Inter-Ministerial Group, involving the Ministry of Electronics and Information Technology, the Commerce Ministry, and the Finance Ministry, is currently drafting the guidelines. The government has set a target to grow the number of GCCs in India to approximately 5,000 by 2030. Investors and stakeholders should track the upcoming stakeholder consultation process, which will determine the final rules and how the national framework will align with existing state-level policies. The successful implementation of these streamlining measures will be the primary monitorable to see if the ambitious 2030 growth target remains on track.