Anshul Chaudhary

India is rapidly emerging as a global hub for Global Capability Centres (GCCs), with Bengaluru, Hyderabad, and Pune leading the way. Uttar Pradesh is now following suit in aspirational fervor to redefine the state’s economic destiny. India’s northern power center, Uttar Pradesh (UP), is strategically shifting to become India’s top location for Global Capability Centres (GCCs), high-value innovation centers of multinational corporations. In April 2025, the UP Cabinet announced the Global Capability Centres (GCC) Policy 2024, a concerted effort to attract world-class talent, capital, and global business services Why Set Up a GCC in India? India has emerged as a global hotspot for setting up Global Capability Centres (GCCs). Its unique combination of skilled talent, strategic location, and supportive policies makes it an ideal choice for companies seeking efficiency, innovation, and scale. Beyond cost advantages, India offers a thriving ecosystem that enables businesses to operate seamlessly across geographies while tapping into cutting-edge expertise. Establishing a GCC here can accelerate growth, drive innovation, and ensure competitive advantage. 1. A Talent Engine Driven by Excellence India’s strongest asset is its workforce, particularly in technology and engineering. Every year, over 1.5 million engineers graduate, while the digitally literate segment continues to grow. GCCs are no longer limited to support roles they now recruit for high-value positions in: Artificial Intelligence and Automation Cybersecurity Data Science Product Management This depth of expertise ensures that companies can build teams capable of driving innovation, not just operational efficiency. 2. Time Zones That Enable Global Operations India’s geographic location provides a natural advantage for global operations. Positioned between the US, Europe, and Asia Pacific, Indian GCCs can support “follow-the-sun” models, enabling round-the-clock operations. This ensures faster decision-making, uninterrupted services, and seamless business continuity. 3. Infrastructure That Matches Ambition India has invested significantly in both digital and physical infrastructure. Cities like Bengaluru and Hyderabad, along with emerging Tier 2 hubs such as Coimbatore, Kochi, and Ahmedabad, offer: Modern office spaces Reliable power supply and high-speed internet Access to a skilled workforce This infrastructure allows companies to expand beyond traditional metropolitan areas without compromising quality or efficiency. 4. A Policy Landscape That Encourages Growth India’s government fosters a conducive environment for global businesses. Initiatives such as: Easing foreign investment regulations (FDI) Implementing robust data protection laws Promoting digital platforms like India Stack Types of GCCs Under the UP Policy Framework The UP GCC policy also introduces a hub-and-spoke model to distribute investments across the state. It identifies four distinct types of GCCs to cater to varying scales and business requirements: Global hubs: Fully integrated centers with end-to-end ownership of operations, functioning as strategic extensions of global headquarters. Satellite offices: Regional support centers aligned with broader national or global business objectives. Outsource centers: Facilities run by local partners, responsible for delivering specific business functions. Cluster/outpost offices: Smaller units with limited staffing, designed to support remote work and talent retention in specific geographies. Categories of GCCs To connect incentives with investment size and their effect, the UP GCC Policy 2024 categorizes under-construction projects into two categories, namely Level-1 GCCs and Advanced GCCs-based on investment size and employment generation. Level-1 GCCs are mandated to invest at least INR 200 million (US$2.3 million) or generate at least 200 employees in priority districts such as Gautam Buddha Nagar or Ghaziabad. Elsewhere, the thresholds are marginally lower to INR 150 million (US$1.7 million) or 100 employees. The high-end GCCs, to be utilized for larger operations, will need more investment. In Gautam Buddha Nagar or Ghaziabad, firms have to invest a minimum of INR 750 million (US$8.6 million) or hire 500 employees. In the other districts, the minimum investment is INR 500 million (US$5.7 million) and 300 employees. Structural & Strategic Strengths Talent pool: UP produces over 1.3 million graduates annually, with a youth employability rate of approximately 74% in the 22–25 age group Education infrastructure: The state has 72 universities, over 8,300 higher education institutions, and more than 3,000 ITIs. Existing tech ecosystem: Noida already houses GCCs of Microsoft, Samsung, MAQ Software, TCS, Infosys, and HCL. Physical infrastructure: The state boasts 40+ IT parks, 25 Special Economic Zones (SEZs), a semiconductor park near Jewar, and a new AI City coming up in Lucknow. Goals & Ambitions The State plans to:  Recruit 1,000+ new GCCs within the next 4-5 years Provide 500,000 direct job opportunities across industries like IT, analytics, HR, finance, and customer service Create around 200,000-250,000 positions. The UP policy provides a robust mix of fiscal and non-fiscal support:  Fiscal Incentives Subsidized land: The policy offers 30-50% subsidies on land allocations, and greater subsidies in Bundelkhand/Purvanchal Land Exemptions: GCCs can avail stamp duty exemption and reimbursement on office and land transactions Capital grants: Eligible for ₹25 crore grants for seven years for upgraded FCCs OPEX reimbursements: GCCs will receive 20% reimbursement on lease, cloud, power, bandwidth, with caps ranging from ₹40-80 crore limit for five years Subsidy on payroll:  The state will provide ₹1.2 lakh per employee per year (₹1.8 lakh for UP domiciled SC/ST women) up to ₹20 crore per year for 3 years EPF contributions: Employers will receive 100% reimbursement of EPF contributions for eligible employees, up to ₹1 crore annually for three years. Helping in fresher hiring: Companies hiring at least 30 graduates from UP universities per year will receive ₹20,000 per recruit, for up to five years. Internships & Skilling: The policy offers ₹50,000 per employee for skill development training and ₹5,000 per month for each intern, within defined caps. R&D, patents & innovation: The state will provide up to ₹2 crore annually for proof-of-concept projects and up to ₹10 lakh per international patent filing. Non-Fiscal Support Allowed to operate 24×7 with flexibility and ease in labor regulation checks. Streamlined regulatory clearances and single-window speed-clearing mechanisms Exclusively advisory support through a Technical Support Group of industry pioneers Academic direct links and Centers of Excellence, to access talent In-Depth Impact on the Economy & Beyond The policy promises to generate 200,000+ jobs in the first phase itself Cities like Noida, Lucknow, … Read more