India looks to set up a mini Silicon Valley for GCCs in Goa, says Piyush Goyal

Commerce Minister Piyush Goyal

India plans to set up a mini Silicon Valley for global capacity centers (GCCs) in Goa, Commerce Minister Piyush Goyal said on November 8.

Goyal's comments around GCCs comes at a time when they are in the middle of an exponential rise in India since the past couple of years, providing services in operations, product development, and innovation. More than 150 multinational companies have set up their GCCs in the country, increasing the number from 760 in 2012, to over 1,600 GCCs as of March 2023.

"Confident that the Centre and the Goa government will create additional framework where high-tech industry will come to Goa in a big way in which we are able to develop the state as a preferred destination for data centers for developing high-quality semiconductor chips, electronics and automobile products," the minister said.

Goyal was speaking virtually at the Amazing Goa Global Business Summit.

The Economic Survey 2024 presented in July this year said that GCCs may contribute roughly 3.5 percent of India’s GDP by 2030, generating an estimated revenue of $121 billion by then. The survey quoted a PwC report, saying that by 2028, the country is poised to have 2,100 GCCs, with the market size of the facilities touching $90 billion.

A GCC is a dedicated offshore unit a company sets up in a foreign country to in-source IT and related business functions.

The commerce minister reiterated the central government's commitment to ease compliances for businesses in a bid to attract more foreign investment into the country. "A young population in India connected digitally, thanks to the lowest cost of data anywhere in the world, is a potent combination to attract investors looking for high quality and sustainable business operations," he said.