FM unveils Model State GCC Framework, flags massive infra push as Capex surges to 4.1% of GDP

Union Finance Minister Nirmala Sitharaman, during the CII GCC Business Summit in Visakhapatnam today, said the Centre has given a massive push to address infrastructure and logistics bottlenecks, with capital investment surging from 1.7% of GDP in FY2013-14 to 3.2% in FY2024-25, and the effective capital expenditure standing at 4.1% of GDP.

The FM was speaking on the release of the Model State GCC Framework, which provides a clear roadmap for states to scale up their efforts, attract investment and build resilient ecosystems.

Elaborating on the Centre's infra push, the FM said 88 airports have been operationalised over the last 11 years, 31,000 km of new rail tracks have been laid, metro networks have expanded over fourfold, port capacity doubled, and the National Highway network has been extended by 60%. 

She also said additionally, the Centre, under the Scheme for Special Assistance to States for Capital Investment (SASCI), has sanctioned over Rs 3.6 lakh crore as 50-year interest-free loans to states, and incentivised increased capex, resulting in 22 states recording over 10% growth in capital expenditure from their own resources.

The FM also talks about the role of Global Capability Centres (GCCs) in India's infra space, saying they have a far-reaching impact on economic growth, competitiveness and human capital development. "India’s GCC story is a transformational journey. Today, they are innovation hubs, driving R&D, generating intellectual property and patents and enabling sustainable growth for global enterprises. By providing long-term competitive advantage to global organisations, GCCs are cementing India’s position as the world’s GCC hub."

The FM said the Centre and states must work together to ensure India’s GCC growth is both broad-based and future-ready. "This will not only consolidate India’s leadership in the GCC landscape, but also create new opportunities for innovation, job creation and inclusive regional development, eventually contributing to the vision of Viksit Bharat by 2047," the FM said, adding that states are playing a critical role in deepening India’s GCC advantage and shaping an enabling policy environment. 

The FM also talked about maximising the impact by aligning national and state-level policies and adapting policy instruments; building livability and infrastructure ecosystems that allow Tier-2 and Tier-3 cities to emerge as centres of excellence; and building capacity and addressing ecosystem needs.

"Well, before the Union Budget of July 2024, it was told to me that 50% of GCCs of the world are to be in India and for the rest, which are outside India, 50% of them are run by mostly Indians. Now, after almost two years, GCCs have acquired an Indian flavour, and that's been going on with the same expectation and speed."