STATES
Karnataka’s draft GCC policy targets to double centres to 1,000 by 2029
- IBJ Bureau
- Sep 28, 2024
Karnataka aims to double the count of its global capability centres (GCCs) to 1,000 and create 3,50,000 new jobs by 2029, according to a draft policy launched on Friday. The policy is aimed at attracting more foreign companies to set up local offices.
According to the draft policy, the first by any State, the government has outlined incentives such as reimbursing rent and some patent fees, and an exemption from electricity duty, depending on how many employees a GCC adds.
It is also aiming to generate economic output of $50 billion through the new offices by 2029.
GCCs, which were low-cost outsourcing hubs for global firms, have evolved over the last few years and are now used to support their parent organisations in multiple functions, including daily operations, finance and research and development.
More than 1,700 GCCs operate across India, employing over 19 lakh people.
A report by IT industry body NASSCOM and consulting firm Zinnov earlier this month estimated that this number could rise to about 2,200 by 2030, employing around 28 lakh people.
The government has said that these incentives are also meant to encourage companies to set up operations in cities outside the tech hub of Bengaluru, such as Mangaluru, Mysuru and Tumakuru.
Apart from this, the government also plans to establish three new tech parks, fund some skills courses and provide grants for research projects – especially those that focus on artificial intelligence.
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