Karnataka's GCC policy to focus on employee well-being, work-life balance and Beyond Bengaluru clusters

Karnataka's Chief Minister Siddaramaiah along with other dignitaries during the announcement of the GCC Policy at the Bengaluru Tech Summit

Karnataka on November 19 unveiled India's first dedicated Global Capability Centre (GCC) policy, with an aim to create 3.5 lakh new jobs and generate $50 billion in economic output.

The policy stated that state will champion workforce empowerment and equity, flexible and adaptive work models and sustainable and ethical business practices. Aiming to position Karnataka as a global hub for cutting-edge innovation by 2030, the policy seeks to nurture a diverse, future-ready workforce.

This includes fostering upskilling initiatives, mentorship programs for women, and support for specially-abled employees. The policy also highlights the importance of embracing remote and hybrid work arrangements to prioritise employee well-being and work-life balance.

Also read: Karnataka's draft GCC policy: 3.5 lakh jobs by 2029, special package for Beyond Bengaluru clusters

The policy proposes to lead in green initiatives, adhere to Environmental, Social, and Governance (ESG) norms, and embrace digital transformation, fostering sustainability, inclusivity, and ethical governance.

The 'Beyond Bengaluru' initiative is a key feature of the policy with a focus on emerging cities like Hubballi-Dharwad, Mysuru, Mangaluru, Kalaburagi, Tumakuru and Shivamogga. It also aims to create technology and innovation hubs across the state, ensuring balanced regional development.

The government plans to provide extensive support to GCCs establishing operations in these areas, including rental reimbursements, tax incentives, and utility subsidies.

For example, new GCCs located in these clusters will benefit from reimbursements on property taxes and electricity charges, along with financial support for employee recruitment and training programmes.

To drive innovation, the state will establish three Global Innovation Districts, one in Bengaluru and two in Beyond Bengaluru clusters.

Also read: Karnataka to set up 3 Global Innovation Districts for GCCs: Siddaramaiah

These districts will offer state-of-the-art infrastructure, streamlined regulatory processes, and a collaborative ecosystem connecting startups, academic institutions, and technology leaders.
The government will also launch an Innovation Fund worth Rs 100 crore to encourage joint research projects between GCCs and academic institutions.

The policy also aims to position the state as a global leader in artificial intelligence (AI). A new Centre of Excellence for AI will be set up in Bengaluru, functioning on a hub-and-spoke model with academic institutions across the state. This initiative will focus on creating an AI R&D ecosystem, developing ethical AI practices, and accelerating AI-focused startups.

The state government has set ambitious targets under this policy. It plans to attract 500 new GCCs by 2029, raising the total number of such centres in Karnataka to 1,000. This expansion is expected to create 3.5 lakh new jobs and generate $50 billion in economic output. Karnataka, which already hosts around 35 percent of India’s GCC workforce, seeks to consolidate its leadership in this sector.

The policy also seeks to decentralise development by encouraging GCCs to invest in smaller-scale operations, known as Nano GCCs, in Beyond Bengaluru areas. These facilities, employing between 5 and 50 people, will enjoy various incentives without being subject to strict employment or investment thresholds, enabling companies to operate flexibly and adapt quickly.