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Writer's pictureRamessh Ramani

Driving Growth Beyond Bengaluru: Karnataka’s Draft GCC Policy 2024-2029 and the Future of Global Capability Centers





India has emerged as a top destination for Global Capability Centers (GCCs), thanks to its large talent pool, cost-effective operations and a thriving ecosystem. Multinational corporations have established their GCCs in India, evolving from back-office operations to hubs of innovation, research and development. With cities like Bengaluru, Hyderabad and Pune offering world-class infrastructure and connectivity, India has become the go-to market for organizations seeking to establish or expand their global footprints.


However, as competition among Indian states heats up, each is working to create policies and infrastructure that further solidify its position in this growing sector. Karnataka, with Bengaluru as the flagship GCC hub, already houses more than 500 centers, representing 30% of India’s total GCCs. The state is home to global giants and a highly skilled workforce, supported by strong IT infrastructure, modern transport networks and an entrepreneurial spirit that continues to attract top talent and investments.


Recognizing the need to extend this success beyond Bengaluru, Karnataka’s new draft GCC Policy 2024-2029 is a bold initiative aimed at spreading the benefits of GCC growth to other cities in the state. The 'Beyond Bengaluru' strategy promotes growth in cities like Hubballi-Dharwad, Mysuru and Belagavi, extending the benefits of GCC expansion across the state. This balanced growth strategy ensures that Karnataka continues to lead in the GCC sector while creating job opportunities and fostering economic development across the state.


In line with this ambitious vision, Karnataka’s draft Global Capability Centre (GCC) Policy 2024-2029 marks a significant step towards reinforcing Bengaluru’s position as a global leader and ensuring the growth of other city clusters across the state. With a clear focus on extending the benefits of the GCC ecosystem "Beyond Bengaluru," this policy is designed to encourage investments in emerging hubs like Hubballi-Dharwad, Mysuru and Belgavi, all while maintaining Karnataka’s competitive edge in talent, infrastructure and innovation.


Key Objectives and Vision:

i. Expansion and Job Creation: The policy seeks to double the number of GCCs in Karnataka to 1,000 by 2029, generating an estimated economic output of USD 50 billion and creating 350,000 new jobs. Karnataka already accounts for around 35% of India's GCC workforce, with over 500 centers currently operating in the state.


ii. Beyond Bengaluru Development: To decentralize economic growth, the policy introduces the 'Beyond Bengaluru Package' to promote investments in other regions such as Hubballi-Dharwad, Mysuru and Belagavi. This includes support like recruitment assistance, rental reimbursements and tax incentives to encourage companies to establish operations in these areas.


iii. Innovation and R&D Focus: The draft policy emphasizes Karnataka's vision of becoming a leader in research and development, especially in sectors like artificial intelligence, pharmaceuticals, renewable energy and aerospace. The establishment of Global Innovation Districts and three state-of-the-art technology parks aims to facilitate collaboration between startups, tech leaders and academic institutions.


iv. Incentives and Support: Various financial incentives, such as recruitment support, rental reimbursements, property tax exemptions and power tariff concessions, are part of the policy. Customized packages are also available for large-scale projects, alongside a focus on land acquisition and labor reforms to ease the operational hurdles for new GCCs.


v. AI and Talent Development: Karnataka will establish a Centre of Excellence for AI in Bengaluru and an AI Skilling Council to develop talent and expertise in AI-driven technologies. The policy also plans to facilitate internships for up to 100,000 individuals in leading GCCs.


vi. Sustainability and Growth: The policy aims for inclusive and balanced development across sectors like electric vehicles, healthcare and renewable energy, fostering sustainable growth. The government also plans to streamline processes for setting up GCCs, making it easier for companies to navigate regulatory frameworks.


The draft policy is currently open for public consultation and is expected to be a major step toward consolidating Karnataka’s leadership in the GCC sector, offering a template for other Indian states looking to attract global investments in this area.


Karnataka’s draft Global Capability Centre (GCC) Policy 2024-2029 is a crucial step in reinforcing the state’s leadership while laying the groundwork for sustained innovation and job creation. Its ambitious goal of expanding GCC operations beyond Bengaluru to cities like Hubballi-Dharwad, Mysuru and Belagavi signifies a forward-looking approach toward balanced development. As Karnataka continues to attract global investments through these initiatives, the state is poised to remain at the forefront of the GCC revolution in India, driving both economic progress and innovation while shaping the future of the global corporate landscape.


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