Tamil Nadu Industries Minister TRB Rajaa made a compelling pitch to Global Capability Centres (GCCs) in the GCC Next Conclave, on August 7, highlighting the state's infrastructure, workforce, and policy advantages while positioning Tamil Nadu as a global destination for investment.
Tamil Nadu does not view itself in competition with other Indian states, Rajaa said, speaking at the event. "We compete with other countries, not Indian states."
He added the state’s rapid industrial growth across regions, including Chennai, Coimbatore, Madurai, Hosur, and Thoothukudi. "You can close your eyes, put your finger anywhere on the map of Tamil Nadu, and you'll find infrastructure, growth, and talent," he said.
Nonetheless, India as a whole has seen tremendous growth of GCCs and companies capitalising on the talent pool and English-speaking youth, with over 1,700 such captives present today. So much so that the sector is poised to contribute roughly 3.5 percent to the GDP by 2030.
Also read: Karnataka, Tamil Nadu woo GCCs with incentives in state budgets
Speaking on the sidelines of the event, DLF Rental Business’ managing director Sriram Khattar said foreign companies mulling setting up GCCs in India look for high-quality assets, credible ecosystem players, and a high level of safety. “The next few years augur quite well for these companies to come to the country.”
Another consensus that was arrived at the conclave unanimously was that the number of leadership roles from Indian GCCs would increase exponentially. The Economic Survey 2024-25 predicts that global roles from India are expected to grow to over 30,000 from currently 6,500 by 2030.
“It is time to define and give quasi-industry status to the GCC industry,” said Shalini Pillay, India Leader – GCCs, KPMG in India, while delivering a keynote at the conclave.
Also, read: Tamil Nadu announces four new GCC hubs to expand beyond Chennai
From SaaS to AI: “Chen.AI” Vision
Meanwhile, Rajaa said Tamil Nadu, and Chennai in particular, had already proved its leadership in the software-as-a-service (SaaS) sector. The next goal, he said, is for Chennai to emerge as the AI capital of India.
Rebranding Chennai with a tech twist, he joked, “It’s not Chennai. It’s Chen.AI,” and added that he had already registered the name to make the point. Rajaa said Tamil Nadu’s legacy in computing goes back to the 1960s, with the state adopting computer education even before most of India was introduced to the term.
He credited past leaders like Annadurai and Karunanidhi for introducing computing into schools and making Tamil Nadu an early mover in digital literacy. “We were the first to put computers in schools. We’re now emerging as the R&D capital of India and Southeast Asia,” he said.
GCC Policy, Ease of Doing Business
On GCC policy, Rajaa said others can copy the GCC Policy first drafted by Tamil Nadu, “but they won’t have the talent, administrative will, or governance to execute it the way Tamil Nadu can,” he added.
Also, read: TN budget proposes sops for high-paying jobs in capability centres, to promote women workers
Further saying that ease of doing business is a priority. The state’s investment promotion agency, Guidance Tamil Nadu, was described as “India’s best” and already has dedicated desks for GCCs. Rajaa offered prospective investors the ability to “test the waters” by setting up their teams within Guidance TN offices for free before making larger commitments.
Rajaa said he personally meets with top secretaries and industry heads every two months to track the status of investment MOUs.
Also, read: Chennai tops GCC headcount growth in FY24; Hyderabad, Bengaluru follow
“Hosur Will Enable Bengaluru”
When asked about Bengaluru’s well-established tech and startup ecosystem as a rival, he said Hosur’s strategic position near Karnataka’s capital would “enable Bengaluru,” comparing it to Johor Bahru’s role in relation to Singapore. “We don’t mind going to Bengaluru on weekends,” he quipped.
On urban lifestyle comparisons, he addressed concerns about Chennai’s limited nightlife.
“Chennai is a no-nonsense city. I’ll keep my leisure healthy,” he said, proposing a more wellness- and nature-driven lifestyle centered around hiking, green spaces, and Tamil Nadu’s blue-flag certified beaches.
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