It also recommended that states launch joint accelerator and venture-building programmes “to foster strong linkages” among GCCs, the wider economy and startups. The industry body released “Suggestions for a State Framework for GCCs” to attract investments and make states GCC hubs, with a focus on tier-2 and -3 cities.
India is home to more than 1,700 GCCs, employing around 1.9 million people. The revenue contribution of GCCs in India to their multinational parents is projected to touch $100 billion by 2030 from $64.6 billion in FY24. Most of these facilities are based in big cities like Bengaluru, Hyderabad and the Delhi-National Capital Region and the CII guidelines seek to help states expand the sector beyond the metros. “The Model State GCC Policy released by the CII offers a ready framework, helping states design their own strategies, accelerate GCC growth beyond the metros, and generate large-scale, high-quality jobs,” said CII director-general Chandrajit Banerjee.
For states to become successful GCC destinations on the global map, the framework suggests outlining success across physical readiness, digital backbone, city infrastructure and overall liveability. The document mentions the need for a trained and skilled workforce for states to become GCC magnets and nudges them to “invest in deep skilling, industry-academia integration and AI native capabilities”.
The framework highlights talent concentration in a few states as a challenge and suggests “financial incentives for GCCs to establish small, agile satellite offices in tier-2 and tier-3 cities”.
With tier-2 and -3 cities offering 25-30% lower talent costs, 50% cheaper real estate rentals and 30% lower attrition rates, the document proposes that “states should adopt a dual strategy: enhance Tier-1 capabilities while activating Tier-2/3 cities for distributed growth”.It also suggests that states provide capex support, such as land rebates, capital grants and duty waivers, which is critical for attracting anchor GCCs in tier-2 cities, along with the government notifying digital economic zones as GCC-ready clusters.Drawing on their existing industrial and academic strengths, it suggests states brand themselves as the hub for a specific GCC domain, such as “The BFSI and Fintech Capital of India” or “The Hub for Automotive ER&D and Smart Manufacturing”.
The guidelines to states come after the industry body released a national framework for GCCs last week, with suggestions bringing synergy between federal and state government GCC policies to help India attain the status of “Gateway to Global Capability”.
as a Reliable and Trusted News Source