Budget 2026: Thrust on compliance ease, skill development, and standardisation of IP creation incentives could boost India’s GCC sector
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The recent Economic Survey acknowledged the rising role of Global Capability Centres (GCCs) in India and the vital support that it is lending to the traditional export powerhouse—the IT and IT-enabled services (IT & ITeS) sector. GCCs are positioning the country as a global technology hub, moving up the value chain from just offshore backend operators to India units now undertaking technology and engineering innovation to serve its global customer base. The Survey document noted that, “The diversification of the GCC ecosystem has been driven by the growing participation of more specialised and innovation-focussed mid-market GCCs, comprising mid-sized and emerging multinational firms. In parallel, the expansion of GCCs into Tier II and Tier III cities has supported more geographically dispersed employment and strengthened linkages with local innovation and startup ecosystems.” According to the data, as of FY24, India has over 1,700+ GCCs, employing over 19 lakh professionals, making it the largest global hub for captive centres.
Last year in her Budget speech, Finance Minister Nirmala Sitharaman stated the government’s intention to formulate a national framework. "A national framework will be formulated as guidance to states for promoting Global Capability Centres in emerging Tier II cities. This will suggest measures for enhancing the availability of talent and infrastructure, building by-law reforms, and mechanisms for collaboration with industry," she said. However, even after one year that is yet to take shape. Currently GCCs are heavily concentrated in Tier I cities and Bengaluru housing nearly a third of all of GCCs operating in the country.
With the GCC sector increasingly becoming an important employment engine, a Budget Preview report by Motilal Oswal Financial Services expects broader science-led competitiveness (notably GCC in science) emerging as a thematic priority in this year's budget. While State-led GCC policies such as thosein Karnataka, Maharashtra, Tamil Nadu and UP with special incentives could accelerate setting up of new ones, a broader nationwide policy could accelerate the process.
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“What the GCC ecosystem now needs is a national GCC framework from the Centre, one that standardises definitions, offers baseline regulatory and tax clarity, enables single-window approvals, and aligns talent and skilling initiatives nationally” says Lalit Ahuja, Founder & CEO, ANSR, a specialist firm that offers end-to-end GCC solutions.
With long-term investments at stake and technology being at the forefront of growth conversation globally, Raghu Pareddy, Founder & CEO, Wissen Technology, sees policies that support deep-tech innovation, AI, data engineering and cybersecurity directly influencing the confidence for global enterprises continue to place their core technology work in India.
“With continued focus on data infrastructure, semiconductor design, and R&D, India has the opportunity to move from being a delivery hub to becoming a true innovation nerve-centre. A Budget that treats technology—and the talent behind it—as a long-term national asset will define our next phase of global leadership,” Pareddy says. To help the sector grow ever further, he sees thoughtful taxation and ESOP reforms, coupled with simpler compliance, and investment in upskilling as essentials.