India's GCC surge: Fueling growth beyond metros

India’s GCC surge: Fueling growth beyond metros

Shrankhla Verma | May 19, 2025

India is rapidly emerging as the global capital for Global Capability Centres (GCCs), with over 1,800 centres contributing to innovation, employment, and regional development. As these hubs expand into tier 2 cities, they’re redefining India’s economic landscape and powering its journey toward becoming a developed nation by 2047.

GCC - freepik

As global organisations refine their operating models to compete in the digital era, Global Capability Centres (GCCs) have evolved into key strategic assets. Once absent from earnings calls, these centres now stand at the core of enterprise innovation, efficiency, and competitiveness.

India leads the global GCC landscape with over 1,800 centres—nearly 50% of the world’s total—according to a Nasscom report published in December 2024. With a projected CAGR of 15% until 2030, these centres are fuelling India’s economic engine. They boost GDP, enhance innovation, and create sustainable employment through continuous upskilling of local talent.

State and central governments now view GCCs not just as business enablers but as critical drivers of economic growth and regional development. States like Karnataka, Tamil Nadu, Maharashtra, Andhra Pradesh, and Odisha have launched targeted policies to attract GCCs to emerging cities. Karnataka alone plans to add 500 new centres by 2029, generating 350,000 jobs and $50 billion in incremental revenue.

This decentralisation strategy aims to replicate balanced urbanisation patterns seen in countries like the US and China. By expanding into tier 2 cities, companies access fresh talent pools while supporting government efforts to foster urbanisation, employment, and increased tax revenues. This expansion does not undercut tier 1 hubs but complements them, creating a robust nationwide ecosystem.

The transformation of tier 2 cities into GCC hubs signals a paradigm shift in India’s economic narrative. Strategic public-private partnerships, investments in infrastructure, and education are laying the groundwork for this evolution. These developments promise to elevate India’s standing as a global innovation and STEM powerhouse.

As GCCs expand their strategic scope and geographic footprint, they unlock new growth opportunities and contribute to more inclusive economic development. This movement aligns with India’s larger goal of becoming a developed economy by 2047, cementing GCCs as pillars of the country’s transformation story.

India’s GCC surge: Fueling growth beyond metros

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India’s GCC surge: Fueling growth beyond metros

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