India continues to strengthen its position as a global hub for Global Capability Centres (GCCs). With the launch of the Gujarat GCC Policy 2025–2030, the state government is actively positioning Gujarat as a destination for multinational companies looking to establish captive operational centres supporting global business functions.
For international companies evaluating India for expansion, the policy introduces a range of financial incentives, operational cost support, and employment subsidies aimed at reducing the cost of setting up and scaling GCC operations.
Vision of the Gujarat GCC Policy
The Gujarat government intends to develop the state into a preferred destination for Global Capability Centres by creating a globally competitive ecosystem.
The policy focuses on three key objectives:
- Encouraging innovation driven operations such as technology, analytics, and research
- Supporting sustainable economic growth through strategic investments
- Generating high value employment opportunities within the state
By combining financial incentives with regulatory support, the policy aims to attract long term investments from multinational organisations.
Eligibility Criteria for GCCs
The policy defines a Global Capability Centre (GCC) as a centre established by multinational or domestic companies to support and enhance the strategic operations of their parent organisation.
Eligible Entity Structures
Entities eligible to apply under the policy include:
- Companies
- Limited Liability Partnerships (LLPs)
- Joint Ventures
However, entities with 50 percent or more government ownership are excluded.
To qualify for incentives, the entity must establish a wholly owned captive centre in Gujarat.
Nature of Eligible Activities
Eligible GCCs must provide specialised internal services to their parent organisation or global affiliates. Typical functions include:
- Information Technology (IT) services
- Research and Development (R&D)
- Finance and accounting operations
- Analytics and data management
- Human resource management
- Strategic business support functions
A key requirement is that services must be delivered exclusively to the parent company or its affiliates. Providing services to third party clients is not permitted under the policy framework.
Compliance Requirements
Entities operating under the policy must comply with all applicable Indian regulations, including:
- Corporate and company law requirements
- Labour law compliance
- Indian tax regulations
- Foreign exchange regulations
Where the parent company is foreign owned, Foreign Exchange Management Act (FEMA) reporting requirements must also be followed.
Employment Threshold
To qualify for policy incentives, GCCs must maintain a minimum of 50 employees on payroll.
If the employee count falls below this threshold for three consecutive months, the entity will no longer be eligible for fiscal assistance under the policy.
Policy Period
The Gujarat GCC Policy applies to investments made between 2025 and 2030, making it particularly relevant for companies currently evaluating India expansion strategies.
Key Incentives Under the Gujarat GCC Policy
The policy provides several financial incentives designed to support both capital investment and operational costs.
Capital Expenditure Support
GCCs establishing infrastructure in Gujarat can receive support for capital investments.
Key benefits include:
- 20 percent reimbursement on expenditure related to construction or purchase of buildings and other fixed assets
- 30 percent reimbursement on expenditure for IT hardware, including computers, software, and networking infrastructure
However, there are caps on eligible expenditure:
- Building costs capped at INR 3,000 per square foot
- Office space capped at 60 square feet per employee
Operating Expenditure Support
Eligible GCC units can receive support for operational costs.
The policy provides up to 15 percent reimbursement of eligible annual operating expenditure, which may include:
- Lease rentals for office premises
- Bandwidth and connectivity expenses
- Cloud infrastructure costs
- Power tariff expenditure
- Patent related expenses (subject to per patent caps)
Annual reimbursement limits apply:
- INR 200 million per year for standard GCC projects
- INR 400 million per year for mega GCC projects
Projects are classified as:
Standard GCC: Gross Fixed Capital Investment below INR 2,500 million
Mega GCC: Investment of INR 2,500 million or more, or creation of 500 or more jobs
Employment Incentives
The policy strongly incentivises job creation.
Employee Generation Incentive
Companies receive one time financial support for every new job created and retained for at least one year.
The incentive is calculated at 50 percent of one month’s CTC, capped at:
- INR 50,000 per male employee
- INR 60,000 per female employee
Provident Fund Reimbursement
To reduce payroll costs, the policy offers reimbursement of employer contributions to employee provident funds:
- 100 percent reimbursement for female employees
- 75 percent reimbursement for male employees
This benefit is available for five years, capped at 12 percent of Basic plus Dearness Allowance.
Financial and Statutory Relief
Additional financial benefits include:
- Interest subsidy of 7 percent or actual interest paid, whichever is lower
- Maximum subsidy capped at INR 10 million per year
To qualify, the loan must be obtained from the Indian branch of a financial institution, and the interest repayment period must begin during the policy’s operative period.
GCCs also receive full reimbursement of electricity duty for five years, reducing operational costs significantly.
Additional Support Measures
The policy also promotes innovation, certification, and talent development.
Additional incentives include:
- 80 percent reimbursement for quality certifications, up to INR 10 million for up to five certifications
- Skilling incentives of up to INR 50,000 per course for local students completing global training programs
- Additional incentives under existing IT and ITeS policies for deep tech incubation and acceleration
Why Gujarat is Positioning Itself as a GCC Hub
Gujarat already offers several advantages for multinational companies considering GCC expansion:
- Strong infrastructure and industrial ecosystem
- Access to skilled talent across technology and business services
- Business friendly regulatory environment
- Competitive operating costs compared to other Indian technology hubs
Combined with the incentives offered under the GCC Policy 2025–2030, the state is positioning itself as a serious alternative to traditional GCC destinations.
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Conclusion
The Gujarat GCC Policy 2025–2030 provides a comprehensive incentive framework for companies looking to establish captive centres in India. With benefits covering capital investment, operational expenditure, employment, and innovation, the policy aims to attract high value strategic operations to the state.
For multinational corporations evaluating India entry or expansion, Gujarat presents an increasingly attractive location for setting up Global Capability Centres that support global operations while benefiting from India’s talent ecosystem.
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