MeitY Forms Panel To Build National Framework For GCCs: Report

The Ministry of Electronics and Information Technology (MeitY) has reportedly formed a panel to build the national framework for global capacity centres (GCCs).

As per an ET report, citing people close to the matter, the newly-formed committee consists of the National Association of Software and Service Companies (NASSCOM), GCC consulting firms Zinnov Consulting and ANSR, accounting giant KPMG and the national investment promotion and facilitation agency Invest India.

GCC is an in-house subsidiary set up by a multinational company in a specific location to centralise and deliver its business functions and technology for global operations. 

Notably, the Union Budget 2025-26 highlighted that a national framework will be formed to guide states on promoting GCCs in tier II cities. Back then, the Centre said that this framework would suggest measures including availability of talent, infrastructure, building bylaw reforms and potential collaboration in the industry.

Earlier this year, Madhya Pradesh also announced a dedicated GCC policy to position itself as a digital and technological hub. Back then, the state said that this policy is focused on attracting investments in segments including IT, finance, engineering, and business process outsourcing (BPO). 

As a part of this policy, the Madhya Pradesh State Electronics Development Corporation Limited (MPSeDC) was chosen as the nodal agency to supervise the execution of this policy.

Besides, Bengal is also planning to bring semiconductor and GCC policies to attract investment in semiconductor, drones and GCC space.

Why India Needs GCC Push?

India is in the middle of a technological revolution. The past decade has seen emergence and adoption of several AI, machine learning, cloud-computing and blockchain technologies.

As per a report by Zinnov, in FY24, more than 86% of Indian GCCs were using AI and ML for predictive analytics, process automation and hyper personalisation at scale. Besides, cloud computing became foundational infrastructure for 82% of the centres.

The GCC market in India is not only catering to the IT and BFSI segments, but it is also leading innovation in fintech, agritech, healthcare and logistics.

With all this, talent acquisition and skill development is a by-product. As per several media reports, Indian GCCs employed more than 1.9 Mn professionals in 2024. 

As per the government, India’s GCC sector is projected to reach the market size of $105 Bn by 2030. By that time, the market is anticipated to have around 2,400 GCCs employing over 2.8 Mn people, “solidifying India’s role as a global hub for enterprise operations and innovation”.

The Global Hand On India’s GCC Boom

Along with the push from Centre and state governments, several homegrown as well as international companies are also contributing to India’s GCC market.

For instance, listed coworking space startup Awfis recently launched the first “Elite” centre in Hyderabad, as a ready-to-move-in product for GCCs.

Germany-based semiconductor manufacturer Infineon Technologies is also planning to set up a GCC at the Gujarat International Finance Tec-City (GIFT City). 

As per the Economic Survey 2024-25, the number of GCCs in India surged 18% to 1,700 in FY24 from 1,430 in FY19. During this time, India has seen the establishment of more than 400 new GCCs and around 1,100 new units. The growth is fueled by the increase in adoption of AI and machine learning.

As per a NASSCOM blog, the first quarter of 2025 saw the emergence of more than 16 GCCs in India.