Uttar Pradesh has outlined a clear vision to establish itself as a leading destination for Global Capability Centres (GCCs), supported by a policy framework that emphasises innovation, advanced technology services, and high-value research and development. Through a combination of investment-linked incentives, workforce support measures, and infrastructure-related benefits, the state aims to create a competitive environment for both emerging and large-scale GCC operations. For organisations evaluating expansion opportunities in India, the policy presents a structured and potentially cost-efficient platform for long-term growth.
Advantages of Uttar Pradesh for GCC Investments
Uttar Pradesh offers several structural advantages that strengthen its appeal as a destination for GCC investments. The state benefits from a large and diverse talent pool, with a steady supply of engineering, management, and technical graduates. Its proximity to the National Capital Region, particularly through established business centres such as Noida and Greater Noida, enhances accessibility and business connectivity. Uttar Pradesh also offers relatively competitive real estate and operating costs when compared with more established GCC hubs, while ongoing investments in expressways, airports, and industrial corridors continue to improve physical and commercial infrastructure across the state.
Who Can Qualify?
The policy classifies eligible units into two categories: Level 1 GCCs and Advanced GCCs. Eligibility depends on the level of capital investment and the number of employees generated, with separate thresholds for Gautam Buddha Nagar and Ghaziabad compared to the rest of the state.
Level 1 GCC:
Requires a minimum capital investment of ₹20 crore in Gautam Buddha Nagar and Ghaziabad, or ₹15 crore in the rest of Uttar Pradesh. Employment generation thresholds are 200 or more employees in Gautam Buddha Nagar and Ghaziabad, and 100 or more employees in other districts.
Advanced GCC:
Requires a minimum capital investment of ₹75 crore in Gautam Buddha Nagar and Ghaziabad, or ₹50 crore in the rest of Uttar Pradesh. Employment generation thresholds are 500 or more employees in Gautam Buddha Nagar and Ghaziabad, and 300 or more employees in other districts.
Incentives
The GCC Policy provides a wide range of incentives covering payroll, capital investment, infrastructure, operations, and talent development.
Payroll Subsidy
The subsidy will be paid in the form of reimbursement for a period of 03 years, up to a maximum of ₹10 crore per year for a Level-1 unit, and up to a maximum of ₹20 crore for Advanced GCC, towards on-roll employees with continuous enrolment for at least 1 year.
| Year of Operations | GB Nagar & Ghaziabad districts | Rest of UP | Permissible Payroll Subsidy Percentage | Maximum Limit | Permissible Payroll Subsidy Percentage | Maximum Limit |
|---|---|---|---|---|---|---|
| First | 35% | 35% of the employee’s salary, or a maximum of ₹5 lakh of the total annual salary, whichever is less. | 50% | 50% of the employee’s salary, or a maximum of ₹7 lakh of the total annual salary, whichever is less. | ||
| Second | 30% | 30% of the employee’s salary, or a maximum of ₹4 lakh of the total annual salary, whichever is less. | 40% | 40% of the employee’s salary, or a maximum of ₹6 lakh of total annual salary, whichever is less. | ||
| Third | 25% | 30% of the employee’s salary, or a maximum of ₹3 lakh of the total annual salary, whichever is less. | 30% | 30% of the employee’s salary, or a maximum of ₹5 lakh of the total annual salary, whichever is less. | ||
| Fourth | – | – | 25% | 25% of the employee’s salary, or a maximum of ₹4 lakh of the total annual salary, whichever is less. |
Capital Subsidy
Capital subsidy of 25% of Eligible Capital Investment (ECI)*, up to INR 10 crore for Level 1 GCCs and INR 25 crore for Advanced GCCs, disbursed over a period of seven years.
* Eligible Capital Investment (ECI) refers to the capital investment made by an eligible unit during the policy’s eligible investment period after the policy becomes effective. If a company begins its capital investment after the policy’s effective date, the entire investment will be considered as ECI. However, if the company started investing before the policy came into effect, at least 80% of the total capital investment must be made after the policy’s effective date for it to qualify as Eligible Capital Investment under the policy.
Front-end land subsidy
Subsidy of 30–50% on land allotted by State Industrial Development Authorities or other State Government agencies, aimed at reducing the initial land acquisition cost for eligible units establishing operations in the state.
Land and Office Space Cost Reimbursement
Provides 100% exemption or reimbursement on the purchase of land or office space, either through a bank guarantee mechanism or as reimbursement after the commencement of operations by the eligible unit.
Interest Subsidy
Provides an interest subsidy of 5% on term loans availed by eligible units, capped at INR 1 crore per year, for a maximum period of five years from the commencement of operations.
Operational Subsidy
20% subsidy on operating expenses, including on Lease rentals, Bandwidth expenses, Power Charges & Data Centre/ Cloud Service Costs, up to Rs 40 Cr per annum to Level 1 GCCs and up to a maximum of Rs 80 Cr per annum to Advanced GCCs, for five years.
Fresher’s recruitment subsidy
Provides a recruitment subsidy of INR 20,000 per fresher with UP domicile graduating from UP-based institutions, for companies hiring at least 30 such employees annually, available for five years.
EPF Reimbursement
100% reimbursement for EPF contributions for women, SC/ST, transgender, and Divyangjan employees, up to Rs 1 Cr annually for three years.
Talent Development & Skilling:
Subsidies for internships of at least 2-months @50% subject to a maximum Rs 5000 per student per month, capped to a maximum 50 interns in a year, for a period of three years.
Skill Development Subsidy
Rs50,000 per employee for course fee or 50% of the cost of conducting training programs, for a maximum of 500 employees with a cap of Rs 50 lakh per annum for a period of three years.
R&D and Innovation Incentives
Grants of maximum Rs 10 Cr. for setting up Centres of Excellence, support for startup ideation, and academic partnerships, as per IIEPP-2022.
Startup Ideation Support
Reimbursement of 50% of costs incurred in running proof of concepts up to a maximum of Rs. 50 Lakh per annum for 5 years
Subsidy for IPR
Reimbursement of full cost incurred for filing patents up to a maximum of Rs 5 lakh for domestic patents and up to a maximum of Rs 10 lakh for international patents.
Additional Incentives
Case-to-case incentives may be granted to GCCs meeting specified thresholds, including:
- To employ a minimum of 1500 personnel
- Capital investment (excluding cost of land) of more than ₹250 crore.
- Foreign Direct Investment (FDI) by the unit must be at least ₹50 crore, considered through capital investment in self-constructed premises or annual operational expenditure for rented premises, as defined under the Uttar Pradesh FDI Policy 2023.
- A company listed in the Global Fortune 500 (Holding/Parent Company) and Fortune India 500 (Holding/Parent Company) employing a minimum of 1000 personnel.
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Conclusion
The Uttar Pradesh GCC Policy 2024–29 represents a strategic initiative to attract global capability centres and build a strong knowledge economy within the state. By offering substantial incentives across investment, operations, talent development, and innovation, the policy creates a compelling value proposition for multinational companies expanding their global service operations.
As GCCs continue to evolve from cost-saving back offices to strategic innovation and decision-making hubs, Uttar Pradesh’s policy framework aims to position the state as a competitive and scalable destination for global enterprises.
