India's GCCs Pivot from Support to Strategy, Driving Global R&D and Digital Transformation
SDG 9: Industry, Innovation and Infrastructure | SDG 8: Decent Work and Economic Growth
Ministry of Electronics and Information Technology (MeitY) | Department for Promotion of Industry and Internal Trade (DPIIT) | Ministry of Finance
India has consolidated its position as the premier global hub for Global Capability Centers (GCCs), with over 1,700 centers that have evolved from basic support desks into strategic innovation powerhouses. These GCCs function as integral offshore units, delivering specialized expertise in R&D, IT services, and digital transformation for their multinational parent organizations worldwide.
Key statistics and growth drivers include:
Growth and Employment: GCCs’ combined revenue jumped from $40.4 billion in FY19 to $64.6 billion in FY24, growing at an annual pace of 9.8%. They currently employ over 19 lakh people.
Future Projection: The sector is projected to reach USD 105 billion by 2030, supported by nearly 2,400 centers employing over 2.8 million professionals.
Strategic Focus: GCCs are driving R&D in critical areas, including aerospace, defence, and semiconductors. Engineering research GCCs are growing 1.3 times faster than overall GCC setups.
Talent Advantage: India contributes 28% of the global STEM workforce and 23% of global software engineering talent.
Government-led initiatives have been pivotal in nurturing this ecosystem:
Infrastructure: The Modified Electronics Manufacturing Clusters (EMC 2.0) scheme supports world-class infrastructure, offering Ready Built Factory (RBF) sheds and Plug-and-Play facilities ideal for GCC scalability.
Innovation Ecosystem: Initiatives like GENESIS (Gen-Next Support for Innovative Startups) target talent and innovation development in Tier-II and Tier-III cities, creating a feeder ecosystem that offers cutting-edge AI/ML and digital solutions to GCCs.
Regulatory Support: Consistent improvement in Ease of Doing Business rankings, liberalized FDI policies, and SEZ reforms streamline operations and make India a preferred destination for global firms.
Policy Relevance
The Economic Survey 2024–25 explicitly highlights that GCCs are moving beyond cost efficiency to become strategic hubs for engineering R&D, particularly in high-tech, defence, and semiconductor industries. This transformation, supported by flagship government schemes like GENESIS and Skill India, is directly strengthening India’s self-reliance (Aatmanirbhar Bharat) and global leadership in digital and engineering innovation (SDG 9).
Relevant Question for Policy Stakeholders: As GCCs become critical to R&D in strategic sectors like semiconductors and defence, what new policy frameworks are needed to ensure the retention and vertical mobility of the specialized talent pool within India?
Follow the full news here: From Policy to Prosperity: GCCs Leading India’s Growth Journey