Budget 2026: What the Global Capability Centres are pinning their hopes on

With Budget 2026 around the corner, the focus on Global Capability Centres (GCCs) has been sharper than ever. What started two decades ago as offshore support units have today evolved into powerful engines driving innovation, digital transformation, product development, and enterprise-wide decision-making for global corporations. India now has close to 1,800 such centres, employing nearly 2 million people and generating well over $60 billion in exports, marking a strong 40% growth over the previous year contributing significantly to exports, employment, and the country’s technology-led growth narrative. Looking ahead, India could have more than 2,400 GCCs, with industry revenues reaching $100-110 billion and job creation between 2.5 million and 2.8 million. As the Union Budget is fast approaching, this shift in mindset deserves more than a passing mention to cement India’s role as the world’s preferred GCC destination by moving beyond scale to value creation.

One of the key expectations from Budget 2026 is policy stability and regulatory clarity for GCC operations. While India has made real progress in improving ease of doing business, yet anyone running a GCC in a regulated industry knows that approvals, interpretations, and compliance expectations still feel uneven. This becomes even more critical as global enterprises are centralising more data, more IP, and more AI-led decision systems move into India. An alignment between India’s Digital Personal Data Protection framework and global compliance standards will significantly enhance confidence and long-term investment commitment. Easier and faster approval mechanisms for setting up new GCCs, faster expansion approvals, and consistent labour regulations across states would help growth happen faster.

India’s biggest strength is its diversified talent pool, but the demand for skills that GCC needs is rapidly evolving. This year’s Budget should focus on building future-ready skills in areas such as AI, cybersecurity, cloud engineering, and data science. Strong partnerships between industries and universities must lead this effort. Real incentives for reskilling, for applied research, and for industry-linked education would probably do more for India’s long-term competitiveness than any short-term tax benefit. Tax benefits or grants for companies investing in large-scale reskilling and upskilling initiatives would speed up talent development. Equally important is making global talent movement easier by short-term international assignments, cross-border leadership roles, and simplified visa process. These steps will help GCCs operate as truly integrated global hubs, not just offshore extensions.

India’s digital infrastructure has been a strong advantage from UPI to wider Digital Public Infrastructure (DPI) stack. Budget 2026 can build on this advantage by focussing on a next-generation digital system that meets the GCC needs. Stable cloud environments, high-quality data centres, low-latency networks, and serious cybersecurity are not “nice to have” anymore. They are what decide where the next wave of high-value work goes. Equally important is taking this infrastructure beyond Tier I cities. Investing in Tier II and Tier III cities can open up new talent pools, lower cost, and support GCC models that are spread across more locations.

As GCCs increasingly take ownership of core intellectual property, product engineering, and enterprise innovation, Budget 2026 has an opportunity to reposition India as a global R&D powerhouse. R&D support, applied research funding, and deeper collaboration between GCCs, startups, and universities need to move from being talked about to being properly funded and measured.

Just as SEZs played a catalytic role for accelerating India’s exports, focussed innovation zones—with plug-and-play infrastructure, regulatory flexibility, and access to funding—could further enhance India’s attractiveness as a destination for high-value work.

In the end, Budget 2026 should send a clear message for GCC growth by having clear policies, strong digital infrastructure, future-ready talent, and support for innovation. This can help India secure its position as the world’s most trusted hub for global capabilities. India is competing in a global race with other countries that may offer cost advantages or regional proximity, but India has a unique pool of deep talent, robust digital infrastructure, and mature ecosystem. Budget 2026, if executed well, can position India as the most trusted and strategically essential partner for GCCs.

(The authore is Partner, Grant Thornton Bharat. Views are personal)