States in a Race to Lure Companies With Favourable GCC Policies

The recent developments around H1-B visa have redrawn the focus on global capability centres (GCCs) as they fuel India's growth towards becoming a global hub for technology and innovation.

The visa fee hike may be seen as a deterrent for mobility into the US, but it is a historic opportunity for India’s services and GCC ecosystem, according to some.

“We expect MNCs to increase their reliance on GCCs and IT services firms in India, which remain a cost-effective option even after factoring in a 25% cess,” Xpheno co-founder Kamal Karanth told AIM. 

With over 1,700 GCCs employing nearly 2 million professionals across the country and generating $64.6 billion in revenue, states are racing to attract these high-value centres through policy-led incentives.

The Maharashtra cabinet recently approved a policy aimed to establish 400 new GCCs and generate 400,000 high-skilled jobs through industry-integrated curricula, cutting-edge research, and workforce upskilling.

The policy envisions development of world-class business districts and a comprehensive digital data bank. Emphasising balanced, technology-driven growth, the initiative targets tier-2 and tier-3 cities such as Nashik, Nagpur, and Chhatrapati Sambhajinagar, in order to create new economic hubs across the state.

Incentives include one-time capital subsidies ranging from Rs 10 crore to Rs 50 crore, as per the size of units, along with additional support covering rent reimbursement, green certification, patent filing, and R&D grants.

The policy will remain in effect for five years (FY 2029–30) or until a new policy is notified. To ensure alignment with regional economic priorities, global business trends, and sector-specific workforce requirements, the government will establish the Maharashtra GCC Growth Council as an advisory body and a think-tank.

Other States’ Plans

Several other states have either announced or are finalising GCC policies to attract multinational corporations, foster innovation, and create high-skilled jobs. 

Telangana is focusing on emerging technologies, innovation hubs, streamlined regulatory processes, and talent skilling to support new GCCs. Karnataka’s 2024–2029 policy targets 500 GCCs and 350,000 jobs, offering internship reimbursements, tax exemptions, and the development of Global Innovation Districts in Bengaluru and tier-2 cities. 

Gujarat provides capital and operational subsidies, employment incentives, EPF and power tariff reimbursements, and support for R&D and patent filing. Madhya Pradesh emphasises plug-and-play infrastructure, payroll and capital incentives, and IT, finance, and engineering sectors. 

Meanwhile, the Kerala government is about to release GCC policy this year,  focusing on high-tech manufacturing, R&D, reverse migration, and sustainable innovation hubs. Currently, Kerala hosts 40 GCCs and aims to expand this number to 120 by 2030, with the goal of increasing employment from 40,000 to 200,000 jobs.

Rajasthan incentivises infrastructure and skill development, integrating GCCs with local innovation ecosystems. Haryana plans incubators, plug-and-play workspaces, and semiconductor-focused initiatives. 

Andhra Pradesh, too, recently announced the formation of a 360-degree GCC advisory council.

Uttar Pradesh currently has 63 incubators across 23 districts and 08 Centres of Excellence (CoEs) focused on sectors such as AI & ML, blockchain, 5G/6G, drones, MediElectronics, and health informatics. Tamil Nadu is designing a GCC framework emphasising IT, automotive, renewable energy, and R&D support.

However, the companies look beyond the subsidies when zeroing in on a state for their GCCs. 

“It’s about specialisation. We are seeing states create unique value propositions tailored to specific business needs,” said Alouk Kumar, founder and CEO, Inductus Group, a firm offering strategic advisory and consulting services.

For instance, a company focused on large-scale, cost-effective operations might find an ideal partner in Uttar Pradesh due to its strong financial incentives. In contrast, a firm leading AI research would be drawn to Karnataka’s thriving innovation ecosystem. 

Meanwhile, a business pioneering hybrid work models would find a natural fit with Andhra Pradesh’s forward-thinking policies that support distributed teams. This growing specialisation is the hallmark of a maturing, sophisticated market, Kumar said.

One of the challenges faced by GCCs is talent shortage. Nipun Sharma, CEO Teamlease Services, said that “policies that only incentivise infrastructure and expansion will not be enough to tackle the real challenge, that is talent readiness.”

India does not face a shortage of graduates, but of job-ready professionals. Unless these policies embed strong apprenticeship models, work-integrated learning, and industry-academia linkages, the talent shortage will continue to limit GCCs’ growth potential. 

GCCs are expected to create over 1.2 million new tech jobs by 2027, contributing to the 4.7 million new tech jobs anticipated nationwide. Unless the talent pipeline is future-ready, this demand-supply mismatch will persist. 

In essence, the old model — GCCs concentrated in a few major cities — is giving way to a more distributed network driven by the ambitions of individual states. Kumar mentioned that this shift has sparked a new era of “competitive federalism,” where states are developing unique strategic identities to attract global investment.

Kumar also noted India’s ambition to be both a digital sovereign nation and the world’s most attractive hub for GCCs has created a complex policy environment. 

While the DPDP Act brings India closer to global standards like GDPR, it also introduces friction through stricter consent mandates, cross-border transfer uncertainties, and heavy penalties for Significant Data Fiduciaries. 

Similarly, policies such as CERT-In’s six-hour cybersecurity reporting rule, GST-linked e-invoicing requirements, and rigid SEZ/OSP regulations add operational burdens that disrupt global standardisation, he said. 

State	Capital Subsidy	Payroll / Employment Incentives	Infrastructure Support	Skilling & Workforce Development	Regulatory / Other Incentives	Other Notes
Maharashtra	Up to ₹50 crore for large units (₹250–300 crore investment)	₹50,000 per employee/month for up to 100 employees over 3 years	Power tariff subsidy ₹20 lakh/unit/year (5 yrs); Interest subsidy up to ₹25 crore/unit	N/A	Stamp duty exemption; reimbursement for rent, green certification, patent filing, R&D grants	Focus on Tier-2 & Tier-3 cities (Nashik, Nagpur, Chhatrapati Sambhaji Nagar); GCC parks & Growth Council
Telangana	N/A	N/A	Innovation hubs & digital infrastructure	Reimbursement for internship stipends & skilling expenses; workforce upskilling	Single-window clearances; simplified approval processes	Emphasis on emerging technologies & multinational collaboration
Karnataka	N/A	N/A	Global Innovation Districts in Bengaluru & Tier-2 cities	Internship reimbursement: 50% stipend up to ₹5,000/month for 3 months, 20,000 interns/year; Skilling grants	5-year electricity duty exemption & property tax reimbursement	Focus on deep tech, R&D, collaboration with innovation ecosystem
Gujarat	Up to 35% of eligible fixed costs for enterprises hiring ≥10 employees	₹50,000 per male and ₹60,000 per female employee after 1 year; EPF: 100% female, 75% male, capped at 12% basic + DA	N/A	N/A	Interest subsidy up to 7% on loans (₹1 crore cap, 5 yrs); 100% electricity duty exemption	Focus on IT/ITeS sector and R&D
Madhya Pradesh	40% of eligible fixed capital; ₹15 crore (Level I GCC), ₹30 crore (Advanced GCC) in 5 equal annual installments	Payroll support for local hiring & upskilling	Plug-and-play facilities & dedicated industrial zones	N/A	R&D grants	Supports both Level I & Advanced GCCs
Kerala	N/A	N/A	Innovation hubs & digital infrastructure	Skilling & workforce training	Simplified approval & single-window clearance	Current GCCs: 40; target: 120 by 2030; jobs: 40,000 → 2 lakh
Rajasthan	N/A	N/A	Specialised infrastructure	Skilling & workforce training	Simplified approval & single-window clearance	Focus on IT, finance, engineering GCCs
Haryana	N/A	N/A	H-HUB: incubator with plug-and-play workspaces, innovation labs & prototyping centers	N/A	Single-window clearance; streamlined regulatory processes	₹2,000 crore fund of funds for startups & GCCs; semiconductor focus
Uttar Pradesh	N/A	Payroll subsidies	Plug-and-play facilities & industrial zones	Skilling & workforce training	100% stamp duty exemption; single-window clearance	Focus on Tier-2 cities (Noida, Greater Noida, Lucknow, Kanpur)
Tamil Nadu	N/A	N/A	Renewable energy projects (solar, wind)	Skilling & workforce training	Green Energy Open Access Regulations; single-window clearance	Focus on IT, automotive, renewable energy sectors