Budget bets big on GCCs, paves the way for India's rise as global tech hub

Recognising the success of Global Capability Centres (GCCs) in India, Budget 2025-26 has outlined the intention to formulate a national framework. In her speech, Finance Minister Nirmala Sitharaman stated, "A national framework will be formulated as guidance to states for promoting Global Capability Centres in emerging Tier-2 cities. This will suggest measures for enhancing the availability of talent and infrastructure, building by-law reforms, and mechanisms for collaboration with industry."

As the IT/ITES sector continues to drive the services industry, GCCs have emerged as key talent hirers in India. The Economic Survey released on Friday noted that over the past decade, the GCC ecosystem in India has matured significantly, advancing into high-end engineering roles such as product managers and architects, with 35 per cent of transformation hubs exhibiting a strong presence of architects.

Lalit Ahuja, CEO of ANSR, which provides end-to-end solutions for setting up GCCs, says this is a recognition of the immense potential of GCCs as a force multiplier for economic growth. "With 80% of global firms yet to establish GCCs in India, this initiative unlocks tremendous potential for transforming India into the global GCC capital while creating millions of skilled jobs across the country's emerging urban centres." ANSR has partnered with entities such as KDEM, GIFT City, and several state governments to facilitate GCC expansion into Tier-2 cities.

According to Nasscom, the number of GCCs in India has grown from approximately 1,430 in FY19 to over 1,700 in FY24, employing nearly two million professionals. With the Budget’s focus on expanding talent availability and infrastructure in Tier-2 cities, Jaspreet Singh, Partner and GCC Industry Leader at Grant Thornton Bharat, states, "By unlocking access to a wider talent pool, including professionals who prefer to stay in their hometowns, this initiative will enhance workforce stability and retention. Improved infrastructure will further enable seamless operations, making Tier-2 cities attractive destinations for high-value global work."

In the last five years alone, India has seen more than 400 new GCCs and nearly 1,100 new units established. With their transition from back offices to full-fledged global centres, GCCs are rapidly expanding global roles based in India. "As digital adoption surges, specialised skills in cloud, AI, and enterprise technology will be critical to sustaining India’s leadership in the global technology economy. With over 1.9 million professionals employed by GCCs in India, continued investment in skilling initiatives will not only drive business growth but also contribute to broader societal progress," says Sindhu Gangadharan, MD, SAP Labs India.