Govt to launch National Framework for GCCs in Tier II cities
Over the past five years, the establishment of engineering R&D GCCs has grown 1.3 times faster than overall GCC expansion.
Finance Minister Nirmala Sitharaman, in her Budget speech, said the government will introduce a National Framework for Global Capability Centers (GCCs) to support their expansion into Tier II cities, boosting India’s position as a global hub for technology and business services.
The framework will serve as a guiding document for state governments, outlining measures to enhance talent availability, upgrade infrastructure, and reform building by-laws to facilitate business expansion. It will also promote collaboration between industry stakeholders and the government to create a robust ecosystem for GCC operations.
To further support economic growth, the government will modernise air cargo infrastructure and warehousing for high-value perishable horticulture produce while streamlining cargo screening and customs procedures to enhance efficiency and global competitiveness.
According to the Economic Survey 2024-25, the number of GCCs in India has increased from 1,430 in FY19 to over 1,700 in FY24, employing nearly 1.9 million professionals. India has emerged as a key destination for multinational corporations centralising their technology, analytics, finance, and R&D operations.
Sectors such as aerospace, defense, and semiconductors have witnessed increased investment in high-value engineering research and development (R&D). Over the past five years, the establishment of engineering R&D GCCs has grown 1.3 times faster than overall GCC expansion, indicating a shift towards complex, technology-driven roles.
The framework will emphasise workforce training and public-private partnerships (PPPs) to align academic curricula with industry requirements. India’s STEM workforce accounts for 28% of the global total, positioning the country as a leader in technology and innovation.
Additionally, the government will focus on upgrading urban infrastructure, developing IT parks, and modernising logistics in Tier II cities to make them competitive for GCC investments.