The Global Capability Centers (GCCs) are on a steady growth path and the recent union budget may also fuel their growth further. The proposed framework for expanding GCCs into tier-2 cities introduced by Finance Minister Nirmala Sitharaman in the budget is expected to further cement their strategic importance in India and may also help in the growth of the technology sector in the country. Industry stakeholders say that the potential is huge as around 80 per cent of global firms are yet to establish their GCCs in India and this expansion may further help in their growth.
Experts point out that an initiative announced in the union budget unlocks tremendous potential for transforming India's attractiveness as the global GCC capital, while creating millions of skilled jobs across the country's emerging urban centers.
“We are a huge proponent of expansion of GCC markets to emerging Tier-2 cities. We have partnered with organizations such as KDEM, GIFT City and several state governments to amplify the GCC expansion to Tier-2 cities. This recognition marks a pivotal moment for our sector, poised to break through the sound barrier of growth and emerge as a vital component of India's IT landscape. The proposed national framework will be instrumental in unlocking the potential of tier II cities, driving the next wave of growth, and enabling us to build a robust talent supply engine that fuels innovation and excellence,” pointed out Lalit Ahuja, CEO ANSR.
Industry players feel that the introduction of a national framework to guide states in promoting GCCs, especially in emerging Tier 2 cities is a significant step toward creating a more uniform and business-friendly ecosystem. By addressing key aspects like talent availability, infrastructure, and regulatory reforms, this initiative paves the way for sustained GCC growth across the country.
"The government’s commitment to expanding skilling through five National Centres of Excellence, in collaboration with global expertise, further complements this effort. Ensuring industry-aligned curriculum design, robust skills certification frameworks, and periodic evaluations will be essential in bridging the talent gap and reinforcing India’s position as a global hub for digital transformation. Importantly, this also eases the variations in different state government policies, notably the GCC-specific policies by Karnataka and measures by Tamil Nadu. This cohesive approach facilitates equitable investment and employment opportunities across India,” observed Arvind Srinivasan, EVP and Chief Financial Officer, Thryve Digital.
Another interesting aspect that emerged in the GCC segment is that the GCCs have fueled the record-breaking 77.2 million sq. ft office leasing in India accounting for 36 per cent of demand in 2024: As per JLL the GCCs accounted for 40 per cent of overall office leasing from 2016 to 2024, leasing 27.7 million sq. ft in 2024 alone. Out of that Bengaluru remains the premier GCC hub, capturing 47 per cent of total GCC leasing demand in 2024. Hyderabad is emerging as a strong contender.
Tech occupiers dominate, ER&D (industrial and manufacturing) and BFSI sectors are showing a rapid growth in GCC leasing. As of December 2024, there were over 1,950 GCC units in India, with 70 per cent of Global 500 companies yet to establish a presence. The number of GCC units is expected to exceed 2,500 in the next 3-4 years, potentially occupying over 300 million square feet of office space. As per JLL GCCs are becoming the bedrock of India's office market, driving demand, innovation, and economic growth.
As per JLL GCCs, chasing talent and innovation clusters have shown significant interest in Chennai as well which exhibits the strongest growth in the last three years. Momentum remained strong in Delhi NCR and Pune as well. The GCC footprint expansion across key cities is clearly indicative of their deep understanding of India’s tech ecosystem and the ability to analyse key factors around talent availability. It also shows their deep commitment and understanding of India is central to their growth plans.
