CII’s model state GCC policy aims to create millions of high-quality jobs across India

The Confederation of Indian Industry (CII) announced the publication of its Model State Policy on Global Capability Centres (GCCs), a detailed framework aimed at guiding states across India in attracting, enabling, and expanding the next generation of global enterprise hubs.

This policy framework comes at a crucial time as India shifts from being a global delivery hub to an innovation and leadership centre for multinational corporations. The new model policy offers states a pragmatic, forward-looking, and investment-friendly plan that complements national efforts while also creating unique advantages at the local level.

Chandrajit Banerjee, Director General of CII, stated, “The remarkable rise of GCCs in India has been one of the most significant developments in our economic journey over the last twenty years. But to maintain leadership and increase our share of global value chains, states must implement clear, competitive, and innovation-focused policies. The Model State GCC Policy released by CII today provides a ready framework for this effort – helping states craft their own strategies, boost GCC growth beyond the metro areas, and create large-scale, high-quality jobs. This is about making sure that India’s knowledge capital is inclusive, future-ready, and internationally benchmarked."

The policy is significant because nearly 95% of India’s 1,800-plus GCCs are currently located in just six Tier-1 cities. While these metropolitan areas have driven growth, future development will depend on how effectively states can unlock potential in Tier-2 and Tier-3 cities. The CII model policy aims to support these emerging hubs, diversify the geographic distribution of GCCs, and develop state-level ecosystems that attract global enterprises.

The release of this policy aims to equip states with practical actions across infrastructure, incentives, regulatory frameworks, and talent development, with the key goal of building seamless, resilient, and globally competitive ecosystems. Notably, the model policy has been shaped by best practices from successful state-level initiatives in India, along with global benchmarks of leading GCC destinations.

In launching the policy, CII highlighted that while the national framework provides the overall direction and vision, it is the states that will ultimately decide how quickly and effectively India can expand GCCs in terms of size, scope, and sophistication. As Banerjee observed, “States today are the frontline drivers of India’s competitiveness. With this model policy, we are equipping them with a toolkit to attract global corporations, nurture local ecosystems, and ensure balanced and sustainable growth of GCCs across the country.”

The Model State GCC Policy includes several key recommendations, as outlined below:

First, the policy advocates for the creation of State-level Facilitation Cells dedicated to GCCs, serving as a single point of contact for investors and enterprises. These cells would simplify approvals for land, utilities, and infrastructure, while also functioning as investor support desks to resolve issues in real time. Such dedicated structures will not only reduce transaction costs but also boost the confidence of global companies in engaging with state authorities.

Second, the policy recommends targeted fiscal and regulatory incentives for GCCs that go beyond generic IT/ITES schemes. These include viability gap funding for integrated infrastructure projects such as smart mobility and transit corridors, time-bound tax holidays, and exemptions on customs duties for imported R&D equipment and technology tools. The model proposes that in the initial phase, states may identify and develop 8–10 priority hubs, chosen through transparent challenge-based selection processes, ensuring competitive site allocation and efficient clustering of facilities.

Third, the policy emphasises the importance of dedicated digital infrastructure investment at the state level, including compute subsidies for AI/ML model training, government-backed service-level agreements to ensure uninterrupted connectivity, and incentives for establishing edge data centres in Tier-2 and Tier-3 locations. By embedding digital backbone components into local infrastructure policies, states can ensure that GCCs in emerging cities perform on par with global hubs.

Fourth, the policy encourages states to establish joint accelerator and venture-building programmes that connect GCCs with local start-ups and research institutions. This strategy will enable multinational enterprises to collaborate on solutions in frontier technologies such as quantum computing, ESG-aligned applications like digital twins for energy efficiency, and enterprise SaaS with export potential. Grants and proof-of-concept funding mechanisms should be created to accelerate these collaborations.

Fifth, the model suggests that green infrastructure should become a standard in GCC development at the state level. Capex support should be provided for facilities certified under internationally recognised standards such as LEED or GRIHA, ensuring low-carbon, resource-efficient operations. This would not only align with India’s sustainability objectives but also make state ecosystems more attractive to ESG-conscious global investors.

Sixth, the policy suggests that states should develop locational capability by integrating housing, smart mobility, and civic infrastructure into their GCC planning frameworks. This involves the convergence of multiple state schemes—whether in affordable housing, multi-modal transport, or smart city projects—to create holistic “Champion Cities” where GCCs can flourish alongside high-quality living standards for professionals and their families.

Seventh, the model promotes the development of state-specific data security and IP facilitation frameworks aligned with the Digital Personal Data Protection Act, but customised to local circumstances. Sandbox environments, expedited intellectual property approvals, and sector-specific data trust models are recommended to give states an advantage in hosting data-intensive GCCs such as those working in AI, fintech, or healthcare analytics.

Eighth, the policy advocates for offering incentive support for high-performance computing clusters and federated compute pools through public-private partnership models. States should co-invest in these digital assets alongside industry, ensuring that their cities remain competitive now and are prepared for future technological advancements.

Ninth, the policy emphasises the importance of branding and outreach by states in partnership with CII. This includes developing city-specific GCC value propositions, participating in international roadshows, and building sector-focused campaigns targeting underpenetrated markets such as Japan, the Nordics, and the Middle East. The aim is to ensure that state-level ecosystems are visible and attractive to global decision-makers, not solely reliant on national branding campaigns.

Tenth, the model recommends the institutionalisation of continuous monitoring and feedback mechanisms so that states can adapt to the fast-changing needs of global enterprises. A multi-tier architecture involving state nodal departments, industry partners, and innovation agencies can ensure that regulatory issues are addressed promptly, incentive schemes are evaluated in real time, and course corrections are swiftly implemented.

CII highlighted that these recommendations are meant to enable states to compete internationally while working together nationally. By adopting such measures, states can guarantee not only the growth of GCCs within their borders but also the development of innovation clusters that match the world’s best.

Banerjee stated, “The model policy makes it clear that the next wave of GCC growth must be geographically inclusive. States that act early and decisively will be the ones to reap the benefits of high-quality employment, deepened innovation ecosystems, and stronger integration into global value chains. CII stands ready to partner with states in operationalising these recommendations, through joint task forces, investment promotion campaigns, and skill development initiatives.”

He further added, “The GCC sector has the potential to transform India’s economic trajectory, not only through jobs and exports but by positioning India as a global hub of intellectual property, digital innovation, and leadership talent. With a national framework providing direction and the model state policy equipping states with actionable levers, India can look forward to scaling its GCC sector to contribute nearly $200 billion in direct value to the economy by 2030.”

CII’s Model State GCC Policy has already garnered interest from several states, with some governments considering the adoption and localisation of the recommendations. The Confederation announced that it will organise regional workshops and state-level consultations in the coming months to promote dialogue between policymakers, industry leaders, and global enterprises on adapting the model to specific state contexts.

Press release concluded with CII reconfirming its dedication to backing states in their policy innovation endeavours. As Banerjee noted, “The time has come for India to shift decisively from a few metropolitan GCC hubs to a nationwide network of knowledge centres. This will not only solidify India’s position as the preferred global destination for GCCs but also ensure that the benefits of this sector reach every region of our country.”