India Emerges as a Global Capability Centre (GCC) Hub

India is rapidly becoming a preferred destination for Global Capability Centres (GCC), with over 1,600 multinationals setting up operations. The government plays a pivotal role in encouraging this growth through supportive policies, streamlined processes, and infrastructure development. This trend is contributing significantly to India's GDP and economic growth.

India is gaining popularity as a destination for Global Capability Centres (GCCs), according to the Economic Survey released on Monday. The government plays a pivotal role in enabling international businesses to establish GCC operations in the country.

The survey lauds India's growth in this sector, noting that government interventions like Digital India, streamlined tax regulations, and flexible labor laws have significantly eased the process for multinational companies. Such steps have helped over 1,600 GCCs set up operations, contributing more than 1% to the country's GDP.

India's journey started with Texas Instruments in 1985 and has now transformed, attracting companies across varied sectors including banking, software, and healthcare. Recently, there has been a shift towards tier-II towns, driven by cost advantages and improved infrastructure, further boosting the GCC landscape in India.

(With inputs from agencies.)