Japan emerges as largest APAC contributor to India's GCC ecosystem: Deloitte

Japan has emerged as the largest contributor to India's Global Capability Centre (GCC) ecosystem in the Asia-Pacific region, with more than 100 Japanese companies establishing centres across the country, according to a Deloitte India report released on Friday.

The report, India's Strategic GCC Play for Japanese Enterprises, said Japanese companies now account for around 5-6% of India's overall GCC ecosystem and are increasingly using these centres for high-value functions such as product research and development, artificial intelligence (AI), engineering, cloud computing, fintech, embedded systems and digital manufacturing.

According to Deloitte, the rapid expansion reflects a broader shift in the role of GCCs from traditional back-office operations to strategic hubs driving innovation, product development and enterprise transformation.

Rohan Lobo, Partner and GCC Industry Leader at Deloitte India, said India and Japan are entering a new phase of economic collaboration driven by technology, innovation and long-term value creation.

"As Japanese enterprises expand their global capability networks, India is emerging as a strategic hub that combines engineering talent, digital expertise and scale," he said.

The report estimates that India's GCC sector could generate a net economic impact of $470-600 billion by FY30, contributing 2.2-2.8% to the country's gross domestic product (GDP) while creating 20-25 million jobs.

Technology companies account for the largest share of Japanese GCCs in India at 20%, followed by industrial firms at 15%. Automotive and healthcare companies each contribute 11%, highlighting the strong engineering focus of Japanese investments.

Keerthi Kumar, Partner at Deloitte India, said Japanese firms are increasingly leveraging India's engineering ecosystem to strengthen product innovation and benefit from globally recognised Japanese manufacturing and engineering practices.

The report also noted that GCC expansion is no longer limited to established technology hubs. Cities such as Ahmedabad, Jaipur, Coimbatore, Kochi and Indore are emerging as preferred destinations due to competitive costs, specialised talent pools and supportive state government policies.

Deloitte said strong bilateral ties, including Japan's commitment to invest JPY10 trillion (around $68 billion) in India, along with digital partnership initiatives and industrial collaboration, are expected to further accelerate GCC growth, making Japan a key driver of India's expanding global capability ecosystem in the coming years.