Govt prepares national GCC policy to streamline expansion across India

The proposed national framework seeks to simplify approvals, strengthen coordination between ministries and states, promote expansion into Tier-II cities, and encourage innovation-driven Global Capability Centres as India targets 5,000 GCCs by 2030.

The Union Government is working on a comprehensive national policy framework for Global Capability Centres (GCCs), with the objective of creating a more uniform and business-friendly environment for multinational companies establishing operations in India. The framework, expected to be finalised later this year, will provide broad policy guidance to states while improving coordination across ministries involved in approvals and compliance.

According to reports, an Inter-Ministerial Group comprising officials from the Ministry of Electronics and Information Technology (MeitY), the Ministry of Commerce and Industry, and the Ministry of Finance has been tasked with preparing the framework. Once the draft is completed, it will be circulated among industry stakeholders and other concerned parties for consultation before being finalised.

The proposed policy follows the government's announcement in the Union Budget 2025-26 to create a national roadmap for GCC development. It is intended to make India a more attractive destination for multinational corporations by reducing administrative complexity and improving the ease of establishing new centres.

Focus on easier approvals and digital compliance

A major feature of the framework is the introduction of a single-window clearance mechanism designed to simplify the approval process. Companies currently need to secure more than 30 permissions from various central and state authorities before becoming operational. The new system aims to consolidate these procedures, reducing paperwork and shortening project timelines.

The government is also evaluating an entity-based digital locker that would allow companies to securely store regulatory documents and reuse them for multiple approvals instead of repeatedly submitting the same information to different agencies.

While the framework will establish national guidelines, it is not expected to replace or dilute existing GCC policies already implemented by states such as Karnataka, Telangana, Tamil Nadu, Haryana and Uttar Pradesh. Instead, it will complement these initiatives by offering a common policy direction for future expansion.

Tier-II cities and innovation to shape next phase of growth

The proposed framework is expected to encourage companies to consider well-connected Tier-II cities for future GCC investments. Policymakers believe major technology hubs such as Bengaluru, Hyderabad and Chennai are approaching infrastructure and capacity limits, making smaller cities an important part of the sector's next growth phase. The strategy also places emphasis on the availability of quality housing, educational institutions and urban infrastructure to support a skilled workforce.

Another key priority is strengthening research and development capabilities within GCCs. The government wants India to move beyond traditional back-office functions and expand into advanced engineering, product development and innovation-led services.

Unlike several state-level incentive programmes, the national policy is unlikely to include direct tax concessions or capital subsidies. Instead, it will focus on creating a predictable regulatory environment and stronger inter-ministerial coordination to improve the overall business ecosystem.

India currently hosts more than 2,100 GCCs, employing over 2.3 million professionals and generating close to $100 billion in annual revenue. Addressing the CII GCC Business Summit 2026, Finance Minister Nirmala Sitharaman said the pace of GCC establishment has increased significantly—from roughly one new centre every week in 2024 to nearly one every day. She expressed confidence that India can achieve its target of 5,000 GCCs by 2030, noting that a large share of Fortune Global 2000 companies are yet to establish such centres in the country.

Beyond direct employment, GCCs continue to generate substantial economic activity by driving demand across real estate, logistics, professional services and other supporting industries, reinforcing their growing role in India's digital and economic transformation.