GCCs driving growth of India’s tech industry, says Economic Survey
GCCs in India have emerged as a key contributor to the growth of India’s services led technology industry and strengthening the global linkages, the Economic Survey said
Global Capability Centres (GCCs) in India are driving the growth of India’s technology industry and is making a meaningful contribution to the services trade surplus of the country, according to The Economic Survey 2025-26.
“In recent years, a key structural feature underpinning the IT-ITeS sector’s performance has been the steady expansion of Global Capability Centres (GCCs),” the Economic Survey said in its report.
According to the Survey, services trade remained strong in FY26, with exports increasing by 6.5% to $304 billion and imports increasing by 1.5% to $152.2 billion in April-December 2025. The services trade surplus amounted to $151.7 billion, accounting for 61.1% of the merchandise deficit, highlighting the resilience of the software, BPM, consulting, and fintech sectors.
It further noted that software services exports have historically been the largest part of the country's overall service exports, with business services exports increasing recently. This growth is due to the country’s success as a global hub for Global Capability Centres (GCCs), which grew at a 7% CAGR from FY20 to FY25.
The growth of GCCs in India have been primarily due to factors such as availability of talent, physical & digital infrastructure, labour arbitrage, SEZ tax holidays and the startup ecosystem, the Survey noted.
As of FY24, India hosts over 1,700+ GCCs, employing over 19 lakh professionals, making it the largest global hub for captive centres. GCCs account for a significant share of employment within the IT sector and have contributed meaningfully to incremental hiring in recent years, the Survey said.
Ritika Loganey Gupta, Partner and GCC Sector Tax Leader - EY India said, “The Economic Survey 2026 reinforces that India’s services surplus is structural, with GCCs playing a vital role in sustaining it. GCC led software, BPM, consulting and fintech activities have evolved from cost efficient delivery to integral components of global operations and innovation.”
The Survey noted that over time, GCCs have evolved from support-oriented functions into integral components of multinational firms’ global operations, undertaking core activities such as product development, engineering, analytics, cybersecurity operations and AI enabled digital functions, thereby strengthening India’s integration into global value chains as a resilient source of growth.
Rohan Lobo - Partner at Deloitte India, said, “Global Capability Centres provide a strategic bridge to translate India’s talent and services strength into encouraging global corporations to view India as a large market, a manufacturing and supply-chain hub, and a regional logistics and exports base. Policy support aligned to this agenda will enable India to achieve broad-based, durable growth.”
Gupta of EY India said as the GCCs move up the value chain a stable and predictable tax and transfer pricing framework, complemented by targeted incentives and reduced disputes, will be key to supporting scale, complexity, and India’s position as a long term hub for global capability centres.
"The Economic Survey confirms what has already been known for a few years. India has emerged as the most favoured destination for multinational companies seeking to establish Global Capability Centres (“GCCs”)," said Vivek K Chandy, Joint Managing Partner, JSA Advocates & Solicitors.