Karnataka Hosts Half of India’s Mid-Market GCCs, Says Study

Karnataka has become the epicentre of India’s mid-market global capability centres (GCCs). About 230 of the 480 such centres are in the state, according to a report released by Karnataka Digital Economy Mission (KDEM) in collaboration with Zinnov.

These centres employ more than 74,000 professionals in Karnataka and are growing at a rate 1.4 times faster than their larger counterparts, the report highlighted. Bengaluru alone commands a 35% share of India’s overall GCC market, reinforcing its position as the country’s leading innovation hub.

“Mid-market GCCs punch above their weight. They bring new products to market quickly, create leadership roles for Indian talent, and push local suppliers to raise their own game,” the report noted.

Officials attribute this surge to Karnataka’s deep engineering R&D talent, AI/ML expertise, and business-friendly policies. The state’s ‘Beyond Bengaluru’ initiative is also helping decentralise growth into cities like Mysuru, Mangaluru, and Hubballi-Dharwad-Belagavi, offering lower operational costs and incentives such as rental assistance and EPF reimbursements.

B V Naidu, Chairman of KDEM, said, “Karnataka is not just a hub, it is the backbone of India’s global innovation leadership. Hosting nearly half of India’s 480+ mid-market GCCs and 74,000+ professionals, our state is setting the benchmark for lean, high-impact innovation.”

Priyank M. Kharge, the IT & BT Minister of Karnataka, stated that the state's GCC policy and skill development initiatives aim to establish Karnataka as a globally competitive and future-ready hub for global corporate centers.
Karnataka’s GCC journey began in 1985 when Texas Instruments set up India’s first global R&D centre in Bengaluru. Four decades later, the state remains at the forefront, leading the rise of mid-sized multinational centres that specialise in AI, cloud, cybersecurity, and data analytics.