CII suggests national framework to position India as global headquarters for innovation-driven GCCs

New Delhi, Sep 14 (PTI) The Confederation of Indian Industry (CII) on Sunday suggested a framework for a National Global Capability Centres (GCC) Policy, that can position the country as the global headquarters for innovation-driven GCCs, generate 20-25 million jobs and contribute up to USD 600 billion in economic impact.

The framework for National GCC Policy, encompasses the setting up Digital Economic Zones, deepening industry-academia partnerships and establishing a GCC Council for inter-ministerial coordination and centre-state alignment.

The implementation of the National GCC Policy framework, alongside the Model State Policy, can double India's GCC footprint by 2030, and make India the world's premier architect of enterprise innovation, the industry lobby argued.

It has been proposed in the Union Budget 2025-26 that a National Framework will be formulated as guidance to states for promoting Global Capability Centres in emerging tier II cities.

The framework suggested by CII calls for clear performance metrics for job creation, innovation, exports, and regional spread, with feedback loops for continuous policy improvement and adaptive strategies to respond to global market and technology shifts.

It calls for national GCC growth to be integrated with initiatives such as Smart Cities and Gati Shakti to promote Tier-II and Tier-III cities as alternative hubs. This requires addressing gaps in transport, utilities, and Grade-A office infrastructure, thereby ensuring balanced and inclusive regional growth.

Moreover, GCCs should be encouraged to act as R&D powerhouses for global companies, supported by corporate venture capital arms and innovation linkages with start-ups.

Incentives for ESG-led innovation -- ranging from green infrastructure to responsible AI adoption -- should be built in, ensuring alignment with India's net-zero commitments and sustainability goals, suggests the framework.

The framework is anchored in three pillars -- national direction, enabling ecosystem, and measurable outcomes -- supported by four critical success factors: talent, infrastructure, regional inclusion, and innovation.

Over the past three decades, India's GCC journey has evolved in four phases -- from cost-focused IT and back-office hubs in the 1990s, to multi-function delivery centres in the 2000s, to digital and innovation hubs post-2015, and now into global enterprise hubs of resilience and digital acceleration.

Key achievements include India's commanding global share, with nearly half of the world's GCCs located here; direct employment of 2.16 million professionals supporting almost 10.4 million jobs in total; an economic contribution of USD 68 billion in gross value added that is projected to rise to between USD 154 and USD 199 billion by 2030; and a job creation potential of 20-25 million roles by the end of the decade, including 4-5 million direct positions.

Investor confidence remains strong, with 3 new GCCs being set up every two weeks.

CII also announced that it is in the final stages of preparing a Model State GCC Policy. This will provide a practical template for states to design their own GCC promotion policies, ensuring alignment with the national vision while allowing for state-specific flexibility and innovation.

"The Model State Policy will complement the national framework by providing a ready playbook for state governments. Together, they will unlock inclusive, distributed growth across India's cities and regions," according to CII.

The suggested framework for the model state GCC policy would be the key focus of discussion at the GCC Business Summit in Vizag on September 17.

CII called upon all stakeholders -- central and state governments, global enterprises, academia, and start-ups -- to collaborate in turning this vision into reality. PTI RSN DRR