Inside Indian States’ Push for a Bigger Slice of the GCC Pie
To lead, states must go beyond incentives—build infrastructure, skills and innovation.
17 JUNE 2025 / 3 min read
This January, a striking new chapter unfolded at the World Economic Forum in Davos. Eight Indian states - Kerala, Telangana, Uttar Pradesh, Andhra Pradesh, Maharashtra, Tamil Nadu, Karnataka, and West Bengal, came armed with a singular mission: to pitch themselves as the next big hub for Global Capability Centers (GCCs). The result? A staggering ₹20 lakh crore (US$231 billion) in investment commitments and a clear signal: India’s GCC race is no longer just national–it’s hyper-local and competitive.
But the buzz didn’t end in the Swiss Alps. Back home, the momentum only grew. State governments rolled out GCC-friendly policies, making one thing clear: the GCC battleground is now at the state level.
With more than 1,800 centers generating US$64.6 billion in revenue in 2024 and projections to cross US$100 billion by 2030, according to the 2024 GCC Annual Report by NASSCOM, the sector has evolved dramatically. No longer confined to back-office functions, GCCs now sit at the heart of global strategy, driving R&D, product engineering, and innovation. Over 364,000 new jobs are expected by 2025. And this time, states want their share of the pie.
The Policy Blitz Begins
Karnataka was the first off the blocks with a dedicated GCC Policy (2024–2029), laying out bold targets, 500 new centers, US$50 billion in output, and 3.5 lakh new jobs. The policy includes rental subsidies, innovation lab support, and skilling reimbursements.
Hot on its heels, Uttar Pradesh rolled out its own vision with its GCC Policy 2024. It hopes to add 200,000 high-paying jobs by attracting GCCs to Noida, Lucknow, and Varanasi. With a clear eye on becoming a US$1 trillion economy, UP’s policy outlines frameworks for both entry-level and advanced centers.
Andhra Pradesh’s GCC & IT Policy 4.0 aims to bridge infrastructure gaps and spread employment across tier-2 cities. Gujarat has joined in with a 2025–30 strategy that highlights digital transformation and high-value services. Even Madhya Pradesh, not traditionally seen as an IT hub, has entered the fray with a globally benchmarked policy aiming to plug into India’s projected US$110 billion GCC future.
Tier-2 Cities: The New Frontier
One of the more interesting trends is the pivot to smaller cities. Nasscom’s India GCC Landscape report, published in September last year shows GCC presence in tier-2 and tier-3 locations is expected to grow by 15–20% by 2025, with longer-term projections closer to 30%. Cities like Jaipur, Vadodara, Kochi, and Bhubaneswar are becoming viable alternatives to congested metros, offering lower costs, better quality of life, and untapped talent.
States are keen to capitalise. By incentivising GCC expansion in these cities, governments can address urban saturation while driving localised economic transformation. Experts at Inductus predict job demand in these regions could spike by 30%–40% over the next two years.
A Centre-State Balancing Act
The central government, too, is taking note. MeitY is reportedly working on a national GCC policy that would complement state-level efforts and push for deeper expansion into smaller towns, especially for niche sectors like healthcare and fintech.
But this patchwork of policies isn’t without issues. Analysts from Inductus Consulting warn that the lack of standardisation makes it harder for global firms to navigate India’s regulatory landscape compared to more coordinated ecosystems like Singapore or Ireland. Infrastructure remains another sore spot. While ambition is high, execution, particularly in tier-2 cities, lags behind in connectivity, power, and institutional support.
India’s dominance, though formidable, isn’t guaranteed. Countries like Poland, Vietnam, and the Philippines are quietly gaining ground, offering leaner regulations and tailored incentives. To stay ahead, India must go beyond fiscal SOPs and focus on long-term capability building.
What Lies Ahead
The real challenge lies in coordination. Without better synergy between state ambitions and national frameworks, there’s a risk of duplication, inefficiency, and policy fatigue. States need to invest in infrastructure, skilling, and innovation ecosystems - not just the incentive sweeteners.
India’s GCC story is at an inflection point. The inter-state competition is a healthy sign of decentralised ambition, but it needs guardrails. The future will belong not to the states that offer the deepest subsidies, but to those that can build sustainable ecosystems - ones that combine talent, technology, and trust.
If India can align its central and state strategies while moving from transactional incentives to transformative infrastructure, its position as the world’s GCC nerve centre could be unshakeable.
