India’s GCCs Need Policy Overhaul to Reach 2,400 by 2030: Report
3 JUNE 2025 / 3 min read
India’s thriving Global Capability Centre (GCC) sector is on track to reach over 2,400 centres by 2030, up from more than 1,600 currently, according to a report by Nishith Desai Associates (NDA). The sector has evolved from low-cost back-office tech hubs to innovation centres, driving growth in data science, artificial intelligence (AI), and ESG strategy.
However, to sustain this momentum, the Indian government must implement key policy reforms, the report says.
The NDA report, “Policy Reforms for Catalysing the Next Phase of GCC Growth,” outlines four crucial policy interventions to propel the sector forward. These include streamlining ease of doing business, modernising tax and employment frameworks, incentivising R&D and innovation, and establishing robust digital and data infrastructure.
Streamlining Business Environment
The report recommends introducing a single-window clearance system across central and state levels to simplify compliance procedures. Standardising labour laws, tax rules, and digital filing systems would also help reduce bureaucratic bottlenecks and delays.
India’s existing tax and employment frameworks were designed for outsourcing, not innovation-driven GCCs. The report suggests greater clarity on transfer pricing norms, simplified tax holiday structures, and easier repatriation of profits. Relaxing rigid employment codes would enable flexible hiring models and facilitate the engagement of global executives in Indian operations.
To match the shift towards high-end R&D and core product innovation, India needs to offer targeted incentives. The report proposes tax credits for IP development, quicker patent clearances, and funding support for deep tech initiatives housed within GCCs. A public- private fund to co-finance frontier tech research in areas like AI, quantum computing, and green energy could drive higher value creation.
Scalable Digital and Data Infrastructure
The report recommends data localisation clarity, updated IT infrastructure guidelines, and alignment with global standards like GDPR. Enhanced cloud capacity, 5G rollout, and trusted internet pathways are essential to ensure uninterrupted, secure digital operations across GCCs.
India’s GCC sector faces competition from countries like the Philippines, Vietnam, and Eastern Europe. To maintain its leadership, the next five years are crucial. Implementing the recommended policy reforms could unlock faster onboarding of new GCCs, drive innovation, and create high-value employment across Tier 1 and Tier 2 cities.
The Indian government has introduced initiatives to promote GCCs, including the Special Economic Zone (SEZ) Act, the Software Technology Parks of India (STPI) Scheme, and the Union Budget 2025. However, a comprehensive national policy framework for GCCs is still in the works.
The report’s recommendations are aimed at creating a seamless business environment, promoting innovation, and driving growth in the GCC sector. By implementing these reforms, India can continue to attract global corporations and establish itself as a hub for innovation, digital transformation, and enterprise growth.
