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Global Capability Centres (“GCCs”) are increasingly becoming the backbone of multinational innovation, transformation, and value delivery. The decision of where to set up a GCC in India is critical as it requires balancing factors like sector focus, incentives, infrastructure, talent, and regulatory ease. In order to assist the global companies on the location of setting up of GCC in India, we have identified key states policies notified by Karnataka, Telangana, Maharashtra, and Gujarat, and have also provided comparative analysis of key policy framework of these States.
Why India?
India stands out as a premier destination for GCCs due to its robust technology ecosystem, large and diverse talent pool, policy driven state initiatives, and cost advantages. Indian states are competing to attract GCC investments by offering strategic fiscal incentives, infrastructure development, and streamlined regulatory support. Presently, India has more than 2,400 GCCs, with the market size projected to reach USD 105 billion by 2030 and employment generation of over 2.5 million professionals.
India is predicted to be one of the most important hubs for GCCs in 2026. GCCs will serve as the primary hubs for global companies to design, test, and run AI driven processes. Their value will extend beyond cost efficiency to measurable business outcomes, customer experience, product velocity, and risk reduction. As a result, enterprises will be looking at India to strengthen quality, speed, and resilience, with cost arbitrage no longer being the sole motivation.
GCC Friendly Locations in India
GCCs are distributed widely across India, however certain states such as Karnataka, Telangana, Maharashtra, and Gujarat stand out for their unique policy frameworks and industry-readiness:
- Karnataka: Bengaluru continues to be India’s leading GCC hub, with Karnataka hosting 875+ GCC units and accounting for approximately 35% (thirty-five per cent) of India’s GCC workforce. Karnataka aims to attract 500 new GCCs by 2029, taking the total number in the State to 1,000, while supporting the creation of 350,000 new jobs in cities such as Mysuru, Mangaluru, Hubballi-Dharwad-Belagavi, Kalaburagi, Tumakuru, and Shivamogga under the “Beyond Bengaluru” initiative and generating USD 50 billion in economic output.
- Telangana: Cities like Hyderabad, Warangal, and Karimnagar are established GCC hubs. Hyderabad’s robust physical and digital infrastructure, coupled with a strong talent pipeline from premier institutions (IIT Hyderabad, IIIT Hyderabad, NIT Warangal), has enabled over 355 GCCs to flourish. Telangana offers dedicated IT parks, Special Economic Zones (“SEZs”), and Grade A office spaces, with superior connectivity and quality of life.
- Maharashtra: Maharashtra is positioning itself as a leading GCC destination through its dedicated Maharashtra GCC Policy 2025, with a vision to establish the state as a premier hub for high value GCCs by leveraging its financial leadership, technological strength, and diversified industrial base. The policy specifically aims to attract approximately 400 new GCCs and create 400,000 high skilled jobs. The policy further emphasizes sector specific GCC clusters across technology, fintech, healthcare, advanced manufacturing, aerospace and defence, pharmaceuticals, automotive, renewable energy, agro and food processing, electronics, and related innovation led sectors, supported by tailored infrastructure, common facility centres, and industry - academia linkages.
- Gujarat: Gujarat leverages its industrial prowess, Special Investment Regions (like GIFT City), superior logistics infrastructure, Foreign Direct Investment (“FDI”) inflows, and progressive governance to build a GCC-ready ecosystem. With vibrant cities (such as Ahmedabad and Vadodara), the state prioritizes digital, AI-enabled sectors, and offers a safe, business friendly environment. Gujarat aims for over 250 new GCCs and the creation of 50,000 jobs through its robust incentive platform.
Analyzing Different State Policies Favoring GCCs
A comparative glance at key policies illustrates each state’s commitment to the growth of GCCs
| State | Key Policy Highlights | Talent & Infrastructure | Fiscal Support | Ease of Doing Business |
|---|---|---|---|---|
| Karnataka | Focused on talent, innovation ecosystem; support for Nano GCCs and mega projects. | Cities such as Mysuru, Mangaluru, Hubballi-Dharwad-Belagavi, Tumakuru, Kalaburagi, and Shivamogga offer strong academic institutions, a growing startup ecosystem, and expanding commercial real estate | Skilling reimbursement; internship stipend reimbursement; joint research funding; funding for innovation labs; rental assistance, Employees Provident Funds (“EPF”) reimbursement, internet expense reimbursement, electricity duty exemption, and property tax reimbursement for Beyond Bengaluru GCCs. | Dedicated GCC support unit with Single Point of Contact model; fast track approvals within 45 days; GCC Incentive Clinic; single-window investment facilitation; regulatory support for approvals and compliance. |
| Telangana | Telangana State Industrial Project Approval and Self-Certification System, (“TS-iPASS”) a single window clearance for all state licenses and approvals; flexible labour laws; SEZ benefits; innovation ecosystem (T-Hub, Women Enterprises Hub; urban and rural skilling missions. | Hyderabad’s IT corridor, SEZs, strong academic links | 100% income tax exemption (SEZ, 5 years), VAT/SGST refunds, power subsidy, land rebates, stamp duty waivers, R&D grants, patent support | Fast-tracked approvals, direct access to officials, proactive government engagement. |
| Maharashtra | Building world class business districts along with a robust ‘Digital Databank’ to map talent, supporting new GCCs in selecting the most optimal locations. | Mumbai serves as the financial hub, Navi Mumbai as the data centre and logistics hub, and Pune as the technology and research nucleus. The policy also supports growth in Nagpur, Nashik, and Chhatrapati Sambhajinagar, along with dedicated GCC Parks, plug-and-play infrastructure, innovation clusters, and strong industry-academia linkages. | Providing fiscal incentives, mainly including capital subsidy or rental assistance, payroll subsidy, interest subsidy, power tariff subsidy, electricity duty exemption, and stamp duty exemption. | Providing non fiscal incentives, mainly including incentives like industry status to GCC, additional Floor Space Index, zoning relaxation, reserved Maharashtra Industrial Development Corporation (“MIDC”) land, priority allotment, 24/7 operations, and flexible employment conditions. |
| Gujarat | Robust industrial/talent ecosystem, direct CAPEX/OPEX subsidies, employment generation incentive, focus on mega projects | Ahmedabad, Vadodara, GIFT City, High FDI, urban living | Up to 20-30% capital expenditure subsidy, 15% operational expenditure subsidy, employment generation incentive of INR 50,000 - 60,000 per new job, 100% EPF reimbursement (female), interest subsidy, quality certification, skilling grants. | Digital processing empowered state-level committees, dedicated investor interface. |
Additional Key Factors
- Skill Development: All States emphasize continuous learning, industry academia links, and employability programmes including direct skilling grants, future skills missions, incubation hubs, and innovation funds.
- Regulatory Support: Single-window clearance systems (such as TS-iPASS in Telangana) dramatically reduce establishment timelines and compliance burdens.
- Operational Incentives: Major cost heads capital investment, lease rentals, bandwidth, power, cloud infra, and intellectual property creation are subsidized, while workforce incentives are also provided for diverse and inclusive hiring.
Conclusion
For businesses evaluating India’s leading Tier 1 city ecosystems for GCCs, the decision should be driven by the quality and depth of mature metropolitan advantages rather than by an expansion thesis centred on emerging Tier 2 cities. India’s principal GCC hubs continue to derive their strength from dense talent markets, established commercial real estate, superior digital and physical infrastructure, greater connectivity, sector specific business ecosystems, and stronger institutional support from state governments and industry bodies. For multinational enterprises seeking stability, scalability, and access to high end talent, Tier 1 cities remain the primary locations for setting up strategic, innovation-led, and business critical GCC operations.
In this context, Bengaluru continues to be the benchmark for technology led GCCs, given its deep engineering talent base, mature startup and innovation ecosystem, and concentration of global technology and R&D centers. Hyderabad offers a compelling proposition through a strong policy environment, high-quality office infrastructure, and a well-developed institutional ecosystem that supports technology, digital services, and innovation driven functions. Maharashtra’s Mumbai-Pune corridor presents a differentiated advantage by combining Mumbai’s strength as India’s financial and commercial capital with Pune’s established technology, engineering, and research ecosystem, making the state particularly attractive for financial services, technology, analytics, advanced manufacturing, and innovation-oriented GCCs. Gujarat, through Ahmedabad and GIFT City, offers a strong industrial and financial ecosystem, connectivity advantages, and a policy-driven framework that is well suited for companies seeking operational efficiency and strategic long-term growth.
Accordingly, the choice of location should not be approached as a generic “India entry” decision, but as a calibrated assessment of which Tier 1 ecosystem best aligns with the GCC’s sectoral priorities, operational model, innovation requirements, workforce strategy, and investment horizon. Companies establishing high-value GCCs must evaluate where they can access not only scale, but also leadership talent, specialized capabilities, regulatory facilitation, and long-term business continuity. In that regard, Karnataka, Telangana, Maharashtra, and Gujarat have each designed state specific policy frameworks that reinforce the attractiveness of their leading urban centres and collectively strengthen India’s position as one of the world’s foremost destinations for GCCs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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