From Heartland to Tech Titan: UP Bets Big on GCCs with 2025 Policy Push
19 MAY 2025 / 04 min read
In a bold pivot from its historical legacy to a future powered by tech and talent, Uttar Pradesh has unveiled its ambitious Global Capability Centres (GCC) Policy 2025, a sweeping plan designed to catapult the state into the ranks of India’s premier innovation hubs. The policy, greenlit on May 7, 2025, is poised to position Noida, Lucknow, Kanpur, and other rising cities as magnets for multinational investment and global operations, backed by generous incentives and world-class infrastructure.
In a bold pivot from its historical legacy to a future powered by tech and talent, Uttar Pradesh has unveiled its ambitious Global Capability Centres (GCC) Policy 2025, a sweeping plan designed to catapult the state into the ranks of India’s premier innovation hubs. The policy, greenlit on May 7, 2025, is poised to position Noida, Lucknow, Kanpur, and other rising cities as magnets for multinational investment and global operations, backed by generous incentives and world-class infrastructure.
Uttar Pradesh is making a play for the global stage—and it’s putting its money where its mouth is. With the launch of its GCC Policy 2025, the state aims to attract a thousand new GCCs, promising to create over two lakh high-paying jobs while transforming Tier-2 cities into thriving nerve centres of innovation.
Aimed at luring global giants in IT, Fintech, Healthcare, AI, and Cybersecurity, the policy offers a buffet of financial and non-financial incentives. GCCs investing upwards of ₹15 crore (or ₹20 crore in Gautam Buddha Nagar and Ghaziabad) will qualify as Level-1 units, while those investing ₹50–₹75 crore or hiring over 1,000 professionals will attain “Advanced GCC” status.
The rewards? Substantial. Think 30–50% subsidies on land, 100% stamp duty waivers, capital grants up to ₹25 crore, and operational subsidies that can reach a staggering ₹80 crore annually for top-tier players. Payroll support sweetens the deal further, with up to ₹1.8 lakh offered per UP-based employee and an additional ₹20,000 for fresh graduates hired from local institutions. There’s also up to ₹10 crore earmarked for Centres of Excellence, alongside full reimbursement for patent filings, clear signals that the state is betting on innovation.
But the appeal goes beyond money. UP’s GCC policy introduces a host of business-friendly measures: a dedicated Technical Support Group to help companies navigate local regulations, exemptions from routine labour and pollution inspections, permission for round-the-clock operations, and relaxed building norms to speed up construction. All approvals will be managed through Invest UP’s single-window system to ensure smooth entry for investors.
This policy could not be more timely. India’s GCC sector, currently valued at $64.6 billion, is projected to touch $110 billion by 2030, employing over 2.5 million professionals. With over 1,900 GCCs already operating nationwide, Uttar Pradesh’s bold move aims to grab a bigger slice of that pie.
What gives UP an edge? Infrastructure and talent. The state boasts five international airports, 40 IT parks, a 1,000-acre semiconductor zone near Jewar, and an annual talent pool of nearly 1.3 million graduates. Institutions like IIT Kanpur and a rising number of engineering and management colleges feed into this supply, offering companies skilled professionals at competitive costs.
Crucially, the policy leverages the untapped potential of Tier-2 cities like Lucknow, Kanpur, and Varanasi, each with its own unique appeal. Lucknow is already recognised as an IT-BPM hub by NASSCOM, Kanpur brings a legacy of engineering expertise, while Varanasi offers cultural cachet that appeals to global teams. A hub-and-spoke model will also promote satellite and cluster offices in Tier-2 and Tier-3 towns, decentralising growth and decongesting traditional metros like Bengaluru and Hyderabad.
This approach conforms with the central government’s National Framework for GCCs, announced in the 2025-26 Union Budget, which aims to prepare India’s smaller cities for the global tech economy.
For global firms, Uttar Pradesh is laying out a red carpet. With substantial cost savings, regulatory ease, and a future-focused mindset, the state is setting a precedent that may challenge established tech bastions like Karnataka, Telangana, and Tamil Nadu.
As the countdown to Global Investors’ Summit 2.0 begins, Uttar Pradesh is sending a clear message to the world: it’s open for business—and ready to lead India’s next wave of tech-driven growth.
