Bengaluru, often celebrated as India’s Silicon Valley, is also known as the global capability centre (GCC) epicentre. With 2,975 GCCs already operational across India, employing more than 1.6 million professionals, around 875 of them are in Bengaluru, as per the Zinnov-Nasscom India GCC Landscape report. The city’s vibrant talent pool, cosmopolitan culture and global connectivity make it a preferred destination for tech-driven enterprises. With the introduction of the Karnataka GCC Policy 2024-2029, the state aims to attract 500 new GCCs, generating $50 billion in economic output, and creating 3.5 lakh jobs by 2029.
“Karnataka is the first state to announce a GCC policy and we are expecting other states including Tamil Nadu, Telangana, Andhra Pradesh, UP etc to follow suit,” says Vikram Ahuja, co-founder, ANSR, a business consulting company. “The policy represents a forward-thinking approach to building a robust ecosystem for GCCs in the state. By addressing the needs of both mature GCCs and new entrants, it underscores Karnataka’s ambition to lead globally in this sector,” he adds.
As such, the state’s new GCC policy marks a significant shift towards a more investor-friendly environment by guaranteeing all operational approvals within 45 days, addressing one of the major hurdles for MNCs to set up GCCs. Coupled with the state’s new digital single-window system, which streamlines the entire approval process online, this policy enhances transparency, speeds up market entry and boosts investor confidence, feels Ahuja.
According to Sheenam Ohrie, MD, Broadridge India, Karnataka’s progressive policies, such as the new GCC policy, sets it apart. These initiatives streamline business operations through reduced bureaucratic hurdles, incentivised investments, and skill development programmes, ensuring a smooth setup. “With a workforce of over 5,400 employees across its GCC centres, Broadridge leverages Karnataka’s vibrant talent pool of 100,000 STEM graduates annually and robust infrastructure to drive its technology and innovation goals,” she adds.
While the state capital remains the nucleus of Karnataka’s GCC ecosystem, the policy’s focus on the Beyond Bengaluru initiative is noteworthy. Ohrie says the state government is driving further GCC expansion beyond Bengaluru, with cities like Mysuru, Hubballi-Dharwad, and Mangaluru positioned as emerging hubs. In her opinion, investments in infrastructure, cost advantages, and skill development programmes in these cities create opportunities for GCCs to diversify operations and promoting balanced growth across.
Ahuja said that incentives like rental reimbursements, EPF contribution reimbursement, internet and power tariff reimbursements, and property tax concessions make non-metro GCC hubs such as Hubballi, Mangaluru, and Mysuru more appealing. However, Karnataka’s success in attracting GCCs to these secondary cities will ultimately hinge on significant infrastructure investments. “For these locations to truly compete with Bengaluru, they must offer comparable facilities, robust connectivity, and a conducive ecosystem for global operations. Balancing development across the state requires a holistic approach, ensuring that secondary cities not only become viable options but thrive as competitive hubs for GCCs,” he feels.
Partha Sengupta, MD and India GCC head, Nielsen, said that Karnataka has become a cornerstone for GCCs in India, driven by its unique blend of technological prowess, innovation, and forward-thinking governance. Compared to other states, Karnataka differentiates itself with a seamless integration of talent, infrastructure, and innovation support systems, which have consistently attracted global enterprises seeking to scale their digital operations.
“Interestingly, the new GCC policy aims to decentralise operations and tap into the potential of cities like Mysuru, Mangaluru, and Belagavi, positioning them as emerging hubs for GCCs. This approach also proposes the development of three dedicated global innovation districts in Bengaluru, Mysuru and Belagavi, leveraging geographical advantages and the talent pool available here,” Sengupta adds.
Arvind Srinivasan, CSR head, EVP and CFO, Thryve Digital, said, “GCCs, like all growth industries, rely heavily on talent availability, robust infrastructure, and ease of doing business. With governments actively addressing these necessities, India is well poised to further capitalise as the GCC capital of the world. We view Karnataka’s GCC policy as a benchmark for other states to enhance their competitiveness.”
According to Ahuja, the state government has embarked on numerous initiatives to solidify its position as a preeminent high-tech state, taking the lead in attracting investments from both domestic and international sources in transformative technologies like AI/ML, automation, data analytics, 3D printing, and robotics, among others. Bengaluru’s attractiveness is supported by its unique mix of sectors, including retail, banking, manufacturing and more.
“While Eastern Europe, Southeast Asia, and Latin America are increasing their competitiveness, India’s scale, depth of talent, and ecosystem maturity ensure it remains the most preferred destination for global enterprises looking to set up or expand GCCs,” said Ahuja. “The GCC policy underscores state’s ambition to lead globally in this sector,” he added.
