India remains a leading destination for tech GCC: Economic Survey

The growing presence of global capability centres (GCCs) will reshape the corporate landscape in India and influence global business dynamics, noted the Economic Survey for 2024-25.

Global capability centres are technology-focused organisations of foreign companies, which leverage the talent in the country.

According to the survey—published on Friday—the number of GCCs in India has grown from approximately 1,430 in FY19 to over 1,700 in FY24, employing nearly 1.9 million professionals.

Over the past five years, India has remained at the forefront of the global GCC expansion strategy, with more than 400 new GCCs and around 1,100 new units established.

The survey noted that leading organisations are centralising their tech ecosystems in India, which was evident in the aerospace, defence, and semiconductors sectors, where companies are advancing their engineering efforts to focus on next-generation platforms, products, and technologies.

Over the last five years, the setup rate of engineering research and development (R&D) GCCs has grown 1.3 times faster than the overall GCC setup—highlighting a continued shift towards high-value-added work.

India has established itself as a prominent player in leveraging its vast talent pool, which accounts for 28% of the global STEM workforce and 23% of the global software engineering talent, the survey said.

Over the past decade, the GCC ecosystem in India has matured significantly, advancing into high-end engineering roles such as product managers and architects, with 35% of transformation hubs exhibiting a strong presence of architects, it added.

Furthermore, global roles within GCCs are expanding rapidly, expected to grow from currently 6,500 to over 30,000 by 2030, supported by robust training programmes to develop leadership.

Meanwhile, the adoption of artificial intelligence (AI) and machine learning (ML) and the establishment of AI centres of excellence further enhance the GCC landscape by tapping into India's strong middle-management talent, it said.

The survey also pointed out that India’s IT industry has been a significant contributor to the growth of exports. According to the NASSCOM Strategic Review Report 2024, India’s tech industry demonstrated extraordinary resilience in FY24 amidst macroeconomic pressures and geopolitical tensions.

The industry has estimated revenues of $254 billion, marking a 3.8% annual growth in FY24 (excluding ecommerce). Tech exports reached nearly $200 billion, reflecting a growth of 3.3%, while the domestic market is expected to expand by 5.9%, crossing $54 billion in FY24. The sector maintained its position as a net hirer, adding 60,000 employees to reach a workforce of 5.43 million in FY24.