Finance Minister Sitharaman announces national framework to accelerate GCC growth in Tier 2 cities

LRS Scheme

Finance Minister Nirmala Sitharaman said on February 1 that a national framework will be set up to guide states in promoting Global Capability Centres in emerging tier 2 cities, a sector poised to contribute 3.5 percent of India’s GDP by 2030.

"This will suggest measures for enhancing the availability of talent and infrastructure, building bye-law reforms, and mechanisms for collaboration with industry," Sitharaman said while presenting the Budget.

On January 31, the Economic Survey highlighted that the number of GCCs in India has grown to over 1,700 in FY24 from approximately 1,430 in FY19. As of FY24, GCCs in India employ nearly 19 lakh professionals.

Further, the survey expects global roles from India to grow to over 30,000 by 2030 from currently 6,500 through GCCs, supported by robust leadership training programs.

This is driven by the adoption of AI and ML, and the setting up of AI Centres of Excellence further enhances India's GCC landscape by tapping into the strong middle-management talent, the survey said.

GCCs are powering the next wave of software job creation, outpacing the traditional information technology (IT) sector in 2024, which has struggled to maintain its momentum.

India, now hailed as the GCC capital of the world, has added over three lakh employees and nearly $20 billion in export revenue in 2024.

In stark contrast, IT companies have added less than a lakh in headcount and just $6 billion in market size during the same period. The stark decrease in numbers comes at a time when the IT industry is facing demand pressure triggered by a macroeconomic slowdown in the key markets of North America and Europe.

Also, read: GCCs outpace IT in 2024; way ahead in job addition, export revenue