CII: India’s GCC sector can contribute $200 billion in direct value to economy by 2030

The Confederation of Indian Industry (CII) has announced the release of its Model State Policy on Global Capability Centres (GCCs), aimed at guiding states in attracting, enabling, and scaling the next generation of global enterprise hubs. Stating that a national framework is already providing direction, and the model state policy is equipping states with actionable levers, CII’s Director General Chandrajit Banerjee said that India can look forward to scaling its GCC sector to contribute nearly $200 billion in direct value to the economy by 2030.

With 95% of India’s 1,800-plus GCCs currently concentrated in just six Tier-1 cities, the report says that future expansion will depend on the ability of states to unlock potential in Tier-2 and Tier-3 cities. For this, it calls for diversifying the geographic footprint of GCCs and building state-level ecosystems that are attractive to global enterprises.

The key recommendations of the Model State GCC Policy are:

1. Establishment of state-level facilitation cells dedicated to GCCs to serve as a single point of contact for investors and enterprises, streamlining approvals for land, utilities, and infrastructure, while also acting as investor support desks to resolve issues in real time.

2. Targeted fiscal and regulatory incentives for GCCs that go beyond generic IT/ITES schemes. This includes viability gap funding (VGF) for integrated infrastructure projects like smart mobility and transit corridors, time-bound tax holidays, and exemptions on customs duties for imported R&D equipment and technology tools. The model proposes that in the initial phase, states may identify and develop 8–10 priority hubs, chosen through transparent challenge-based selection processes, ensuring competitive site allocation and efficient clustering of facilities.

3. Dedicated digital infrastructure investment at the state level, including compute subsidies for AI/ML model training, government-backed service-level agreements to guarantee uninterrupted connectivity, and incentives for setting up edge data centres in Tier-2 and Tier-3 locations. Embedding digital backbone elements into local infrastructure policy can help states ensure that GCCs in emerging cities operate at par with global hubs.

4. Joint accelerator and venture-building programmes connecting GCCs with local start-ups and research institutions. This approach would allow multinational enterprises to co-create solutions in frontier technologies such as quantum computing, ESG-aligned applications like digital twins for energy efficiency, and enterprise SaaS with export potential.

5. Green infrastructure as a standard in GCC development at the state level, with capex support for facilities certified under internationally recognised standards such as LEED or GRIHA, to ensure low-carbon, resource-efficient operations.

6. Development of locational capability by integrating housing, smart mobility, and civic infrastructure into GCC planning frameworks. The policy calls for convergence of multiple state schemes in affordable housing, multi-modal transport, and smart city projects to create holistic “Champion Cities” where GCCs can thrive alongside strong quality-of-life indices for professionals and their families.

7. Creation of state-specific data security and IP facilitation frameworks aligned with the Digital Personal Data Protection Act but tailored to local conditions. Suggestions include sandbox environments, accelerated intellectual property approvals, and sector-specific data trust models to give states an edge in hosting data-intensive GCCs like those working in AI, fintech, or healthcare analytics.

8. Incentive support for high-performance computing clusters and federated compute pools under public-private partnership models. States are urged to co-invest in these digital assets alongside industry to ensure their cities are future-proofed for technology demands.

9. Branding and outreach by states through city-specific GCC value propositions, participation in international roadshows, and sector-focused campaigns targeting underpenetrated markets such as Japan, the Nordic region, and West Asia. This will help ensure visibility of state-level ecosystems to global decision-makers.

10. Institutionalisation of continuous monitoring and feedback mechanisms for states to adapt to the fast-changing needs of global enterprises. The model calls for a multi-tier architecture involving state nodal departments, industry partners, and innovation agencies to ensure prompt redressal of regulatory issues, real-time evaluation of incentive schemes, and swift implementation of course corrections.