India’s GCC Boom: Finance Minister Urges Acceleration to Attract Fortune 500 Companies

Date:

New Delhi: India’s Global Capability Centres (GCCs), also known as global in-house centres or captives (GICs), are driving a transformative wave in the country’s economic landscape. On July 14, 2025, Union Finance Minister Nirmala Sitharaman, speaking at the Confederation of Indian Industry’s (CII) GCC Business Summit in New Delhi, emphasized the need to accelerate the setup rate of GCCs to make India an even more attractive destination for the remaining 50% of Fortune 500 companies yet to establish their presence here. With approximately 1,800 GCCs already operating in India, employing 2.16 million professionals and contributing $68 billion to the national GDP, the sector is poised for exponential growth, with projections estimating a gross value addition (GVA) of $150–200 billion by 2030.

India’s GCC Revolution Finance Minister Calls for Faster Growth to Attract Fortune 500 Giants
India’s GCC Revolution: Finance Minister Calls for Faster Growth to Attract Fortune 500 Giants

The Rise of GCCs in India

Global Capability Centres are offshore units established by multinational corporations to provide critical services such as IT, research and development (R&D), customer support, and more to their parent organizations. India has emerged as a global leader, hosting over 1,800 GCCs, which account for approximately 50% of all GCCs worldwide. This dominance is fueled by several key drivers:

  • Cost Efficiency: Operating in India is 30–50% more cost-effective compared to countries like the US, UK, and Australia, making it a preferred destination for global firms.
  • Talent Availability: India boasts a highly skilled, English-proficient workforce, with 28% of the global Science, Technology, Engineering, and Mathematics (STEM) talent and 23% of global software engineering talent. Notably, 32% of global GCC talent is based in India, with 42.7% female participation in STEM fields, one of the highest proportions globally.
  • Digital and Policy Readiness: Initiatives like Digital India and Smart Cities have bolstered India’s digital infrastructure, creating a conducive environment for GCC operations.
  • Large Consumer Market: India’s vast market provides a strategic advantage for companies looking to innovate and scale.

The GCC sector has grown at a compounded annual growth rate (CAGR) of 11% over the past five years, contributing 1.6% to India’s national GDP. In 2024, India saw an average of one new GCC established per week, a trend expected to continue in 2025. The sector’s direct gross value addition stands at $68 billion, with employment figures projected to rise from 2.16 million to 2.5–2.8 million by 2030.

Economic Impact and Future Potential

The economic contributions of GCCs are substantial. With a direct GVA of $68 billion, the sector is a cornerstone of India’s economic growth. By 2030, this figure is expected to soar to $150–200 billion, reflecting the immense potential for further expansion. The sector’s growth is particularly pronounced in engineering research and development (R&D), where GCCs have expanded 1.3 times faster than the overall GCC setup rate over the past five years. This shift toward high-value-added work underscores India’s transition from being a hub for operational services to a center for strategic leadership and innovation.

Sitharaman highlighted that the high-quality jobs generated by GCCs are not only retaining talent but also attracting skilled professionals back to India. “People who are returning to India are staying put because they are seeing high-end opportunities now in India,” she said, emphasizing the sector’s role in reversing brain drain. The minister also noted that global roles within Indian GCCs are expected to grow from 6,500 today to over 30,000 by 2030, supported by robust in-house training programs that nurture leadership capabilities.

Challenges in GCC Development

Despite its success, the GCC ecosystem in India faces several challenges:

  • Limited Skilled Workforce in Tier-II and Tier-III Cities: While metropolitan areas like Bengaluru, Hyderabad, and Pune are GCC hubs, smaller cities lack the necessary talent pool to support rapid expansion.
  • Infrastructure Gaps: Inadequate physical and digital connectivity in non-metro areas hinders GCC growth.
  • Complex Regulatory Structures: Navigating India’s regulatory landscape can be daunting for global firms.
  • Cybersecurity Threats: As GCCs increasingly adopt next-gen technologies like AI and cloud computing, cybersecurity remains a critical concern.

To address these challenges, Sitharaman called for strategic interventions, including embracing next-generation technologies like AI, automation, and cloud computing, adopting agile governance models to navigate geopolitical complexities, and redefining workforce strategies through upskilling and hybrid work models. She also emphasized aligning GCC operations with environmental, social, and governance (ESG) goals to ensure sustainable growth.

Government Initiatives to Bolster GCC Growth

The Indian government is actively supporting the GCC ecosystem through targeted skilling and infrastructure initiatives. Sitharaman outlined several measures aimed at enhancing India’s talent pipeline and digital readiness:

  • Skilling Programs: Over 16 million individuals have been trained under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), with a focus on expanding AI and emerging technology skills. Industrial Training Institutes (ITIs) are being modernized with AI training tools and domain experts to provide hands-on instruction.
  • AI Data Labs: A model India AI Data Lab has been established at the National Institute of Electronics and Information Technology (NIELIT) in Delhi, with plans to replicate this initiative in other regions, particularly tier-II and tier-III cities.
  • Support for Higher Education: The government is funding PhD scholars at the top 50 institutions ranked under the National Institutional Ranking Framework (NIRF) to strengthen research capabilities.
  • Infrastructure Development: Recent budget measures include the creation of five national centers of excellence for skilling and a centrally sponsored scheme to upgrade 1,000 ITIs, extending AI training access to the district level.

Sitharaman also praised GIFT City in Gujarat as a model for GCCs, citing its unified regulatory framework and favorable tax environment. “You no longer need to shuttle between RBI, Sebi, IRDAI, or PFRDA—everyone is under one roof,” she said, highlighting the city’s appeal as a base for financial and technological innovation.

Institutionalizing Governance for GCCs

To sustain and accelerate GCC growth, Sitharaman stressed the need for a robust governance mechanism that extends from the central government to states and lower tiers. “We need to lubricate the entire administrative and governing mechanism top down to make sure the same energy prevails everywhere and the advantage is extended throughout the country for everybody to capture,” she said. This approach aims to enable GCCs to launch operations anywhere in India, leveraging the available talent pool and infrastructure.

The minister urged the private sector to look beyond urban centers and explore “futuristic opportunities” in tier-II and tier-III cities, where a growing pool of skilled youth is emerging. She cited the government’s efforts to scale up AI skilling and research ecosystems in these regions as evidence of their potential.

A Call to Action for Industry and Government

Sitharaman’s address was a clarion call for collaboration between industry and government to capitalize on India’s GCC potential. With approximately 50% of Fortune 500 companies already operating GCCs in India, the focus is now on attracting the remaining half. “We have to see where the ground is and be more inviting to the rest of them to come here,” she said, underscoring the need for a proactive approach.

The government’s commitment to providing legislative, taxation, and administrative support was reiterated, with Sitharaman assuring stakeholders that India is determined to maintain its edge in AI and other emerging technologies. “There’s a lot of work to be done, but also great opportunity. The government stands ready to act in close coordination with all stakeholders,” she said.

The Road Ahead

India’s GCC sector is at a pivotal juncture, with the potential to redefine the country’s role in the global economy. The projected growth to 2.5–2.8 million jobs and a GVA of $150–200 billion by 2030 highlights the sector’s transformative impact. By addressing challenges like workforce skilling, infrastructure development, and regulatory simplification, India can solidify its position as the world’s GCC hub.

As Sitharaman noted, the shift toward high-value-added work, particularly in engineering R&D, signals a new era of innovation and leadership. With strategic interventions, robust government support, and industry collaboration, India is well-positioned to attract more Fortune 500 companies and drive sustainable economic growth through its GCC ecosystem.

Frequently Asked Questions (FAQs)

1. What are Global Capability Centres (GCCs) and why are they important in India?

2. What factors make India an attractive destination for GCCs?

3. What challenges do GCCs face in India, and how can they be addressed?

4. How is the Indian government supporting the growth of GCCs?

5. What is the future outlook for GCCs in India by 2030?

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