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, Varanasi, Kanpur, and Prayagraj are being promoted as next-generation innovation centers
The presence of giants such as Microsoft (10,000 seats) and MAQ (3,000 seats) in Noida is an indication of high investor confidence.
Economic Impact: How GCCs Boost India’s Growth
Global Capability Centres (GCCs) are transforming India’s economy, driving both innovation and employment across multiple sectors. Beyond providing cost-efficient operations, they are shaping the country’s urban landscape, enhancing digital capabilities, and fostering high-value skills. With businesses increasingly choosing India as a hub for advanced engineering and technology services, GCCs have become key engines of economic growth. Their influence is visible not only in major metros but also in emerging Tier 2 cities.
1. Driving Employment and Urban Development
India’s GCC sector is currently valued at USD 64.6 billion and is projected to exceed USD 100 billion by FY 2030. These centres directly employ around 1.9 million people, while support employment multiplies this figure two to three times. Beyond jobs, GCCs accelerate urbanisation, construction, and the development of digital skills, particularly in Tier 2 cities, creating a ripple effect across local economies.
2. Shifting Towards High-Value Work
Engineering, Research & Development (ER&D) GCCs are expanding 1.3 times faster than the broader GCC segment. This growth signals a shift from routine operations to more complex, strategic work, including product innovation, software engineering, and digital transformation initiatives.
3. Establishing India as an AI and Tech Hub
India is rapidly emerging as a global centre for Artificial Intelligence (AI) and machine learning (ML). The country now boasts over 120,000 AI/ML professionals and more than 185 dedicated AI/ML Centres of Excellence (CoEs). At the same time, full-stack development expertise is growing at an unprecedented pace, further positioning India as a destination for cutting-edge technology services.
Benefits to Professionals & Businesses
MNCs: A desirable place for the establishment of GCCs, especially mid-size to high-technology centers, because of large-scale financial incentives and infrastructure
Local economy: Anticipated jobs shift and urbanization of principal and secondary cities
Talent & startups: More industry-university connections, more demand for experts, and more R&D activity
Regional balance: Encourages decentralization, enabling Tier II/III city growth beyond the NCR
India’s Future GCC Trajectory
India’s GCC landscape is poised for remarkable growth, underpinned by increasing global demand for high-value services and technological expertise. As more companies establish centres in the country, India is set to strengthen its position as a global hub for innovation and operational excellence. This trajectory promises not only economic gains but also significant employment opportunities and skill development across regions.
1. Expanding GCC Presence
Over 250 new GCCs are expected to be established in India in the coming years, reflecting growing confidence in the country’s talent and infrastructure. These centres will cater to diverse industries, from IT and engineering to emerging technologies like AI and cybersecurity.
2. Employment Growth on the Horizon
By 2030, India’s GCC sector is projected to support between 2.2 and 2.8 million jobs. This growth will encompass both direct employment in GCCs and indirect jobs created through ancillary services, training, and regional development initiatives.
3. Revenue Generation and Economic Impact
The sector is expected to generate approximately USD 105 billion in revenue, further cementing India’s reputation as a destination for strategic global operations. This financial expansion will fuel investment, innovation, and urban development across multiple cities.
Conclusion
Uttar Pradesh’s visionary GCC Policy 2024 is a policy of strategic intent: this is not just about saving costs-this is a roadmap to taking UP to be a high-value services, innovation, and R&D hub. Backed by strong government support, rich talent pools, and mapped infrastructure, UP is unlocking the code to win the sustainable global hubs. India’s next GCC capital could very well be in UP’s next-gen cities-not just the metros.
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UP is steadily unlocking the formula for building sustainable global hubs. The next GCC capital of India may well emerge from its fast-growing cities, not just traditional metros.
