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    BUSINESS & TRADE                                                          JULY 17, 2026    |  The Indian Eye 32

                                 India’s Next Growth Engine:

             States Race to Attract Global Capability

                               Centres Beyond Metro Cities

                  As multinational companies expand their India operations, states are competing to

                position tier-II and tier-III cities as the country’s next Global Capability Centre hubs

            OUR BUREAU                                                                                            GCC destinations.
                                                                                                                     “Under the leadership of our CM
            New Delhi / Mumbai
                                                                                                                  Devendra Fadnavis, we are now fo-
               ndia’s Global Capability Centre                                                                    cusing on the tier-3 and tier-4 cities...
               (GCC) industry is entering a new                                                                   We are looking forward for the good
            Iphase of expansion, with state gov-                                                                  investment and next gateway for the
            ernments aggressively pitching tier-II                                                                GCC in Maharashtra,” she said.
            and tier-III cities as the next destina-                                                                  She  added  that  Maharashtra is
            tions  for  multinational  investments,                                                               offering incentives under its industri-
            even as industry leaders say the sector                                                               al policy, including stamp duty subsi-
            is well positioned to thrive regard-                                                                  dies, while improving ease of doing
            less of global economic uncertainty.                                                                  business through digital initiatives.
                At the CII GCC Summit in New                                                                      Bihar, meanwhile, has introduced
            Delhi,  senior  officials  from  Uttar                                                                its GCC Policy 2026 to attract inves-
            Pradesh, Maharashtra, Bihar and                                                                       tors. “GCCs are now likely to move
            Kerala outlined strategies to attract                                                                 to tier-two, tier-three cities to actual-
            the  next wave of GCC investments       Noida in Uttar Pradesh has already emerged as a major GCC hub (File photo)  ly capitalize on the competitive edge
            through policy incentives, improved                                                                   the tier-two, tier-three cities provide,”
            infrastructure, skilled talent and ar-  spending on technology, research and   chains and induced economic activity   said  Kundan  Kumar,  Secretary,  De-
            tificial intelligence-led industrial eco-  development,  artificial  intelligence   in sectors such as real estate, health-  partment of Industries, Government
            systems. The push reflects the rapid   and digital transformation. “In either   care and education, the overall eco-  of Bihar.
            evolution of India’s GCC landscape   of the cases, the industry will boom,”  nomic impact could reach USD 450-  He said the state offers incentives
            beyond traditional hubs such as Ben-  Lobo said, describing the GCC sector   600 billion.             linked  to  fixed  capital  investment,
            galuru, Hyderabad, Mumbai and Pune.  as being in a “win-win situation.”  Uttar Pradesh representative   rentals and employment, along with
                Industry experts believe the sec-  Lobo said GCCs have moved    said Noida has already emerged as a   additional benefits for companies hir-
            tor has become one of India’s stron-  well beyond their traditional role as   major GCC hub. “As you know, UP is   ing Bihar domiciles. Kumar also high-
            gest growth drivers, supported by cost   back-office  support  centres  and  are   emerging as a leading GCC destina-  lighted the state’s round-the-clock
            competitiveness, a large technology   now handling strategic functions in-  tion. Noida is already an established   power availability supported by ex-
            workforce and expanding capabilities   cluding AI, data engineering, enter-  destination. We have almost 500 units   panding transmission and generation
            in  artificial  intelligence,  engineering   prise technology and innovation while   of GCCs, 200-plus GCC companies   infrastructure.
            research and development (ER&D),  integrating front-office, middle-office   operating there,” said Alok Kumar,   Kerala is positioning itself as a
            digital transformation and enterprise   and back-office operations for global   Principal Secretary, IT & Electronics,  destination for advanced technolo-
            technology.                       enterprises.                      Government of Uttar Pradesh.      gy-led GCCs through an AI-focused
                According to Rohan Lobo, Part-    Artificial intelligence is expected   He said Lucknow and other ti-  industrial strategy. “Our request and
            ner, Deloitte and Industry and Chan-  to automate around 15-20 per cent   er-II cities are increasingly attracting   the pitch to the investors has been
            nel Leader - GCCs, the industry is   of current operational work carried   global companies because of strong   that please see Kerala as a rural urban
            uniquely positioned to benefit in both   out by GCCs. At the same time, AI   policy support, modern infrastructure   continuum where the quality of life is
            favourable  and  difficult  global  eco-  is likely to generate fresh opportuni-  and a large pool of STEM graduates   assured across the tier-2, tier-3 cit-
            nomic conditions. “If there is a signifi-  ties by helping organisations identify   and technical talent.  ies,” said Arun K. Vijayan, Director,
            cant amount of volatility... it is a driver   technology issues, technical debt and   Kumar  also  noted  that  artificial   Industries and Commerce and Man-
            of taking work from high expensive   broken customer journeys, creating   intelligence is reshaping the work-  aging Director of Kerala State Indus-
            areas and bringing it into India where   additional  engineering  and  transfor-  force and emphasised the need to   trial Development Corporation Ltd.
            the cost savings are coming,” Lobo   mation work that could increasingly   prepare talent for evolving industry   Together, the industry outlook
            said on the sidelines of the summit,  be executed from India.       requirements.                     and the coordinated efforts by state
            noting that India offers a cost arbi-  He estimated that GCCs could     Maharashtra is also  expanding   governments point to a broadening of
            trage of around two times compared   contribute between USD 155 billion   its focus beyond Mumbai and Pune.  India’s GCC ecosystem, with emerg-
            to higher-cost markets.           and USD 199 billion in direct gross   Varsha Thakur-Ghuge, Joint CEO of   ing cities expected to play an increas-
                He added that strong global eco-  value  added  over  the  next  three  to   MIDC, said the state is promoting cit-  ingly important role in the country’s
            nomic growth also benefits the sector   four years. Including  indirect contri-  ies including Nagpur, Nashik and Ch-  next phase of technology-led econom-
            as multinational companies increase   butions from service providers, supply   hatrapati Sambhaji Nagar as future   ic growth.

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