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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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