India needs a sharper push to power next GCC wave: DEA secretary

Mint

14-07-2025

New Delhi: India's Global Capability Centres (GCCs) have flourished on the back of robust infrastructure, business-friendly reforms and a deep talent pool but sustaining this momentum will require more work, Department of Economic Affairs (DEA) secretary Anuradha Thakur said on Monday.
A targeted policy push, deeper Centre-state coordination and curriculum upgrades were among tasks lying ahead.
Speaking at the CII (Confederation of Indian Industry) GCC's Business Summit, Thakur said the core drivers of India's rise as a global hub for GCCs included strong physical and digital infrastructure, the Digital India mission, and a decade of regulatory reforms aimed at streamlining approvals, taxation, and compliance.
These interventions laid the foundation for India's dominance in the space, with over 1,800 GCCs now operating in the country, she said.
"Over the years initiatives like streamlined tax regulations, compliance procedures, all of this together, have built up this segment," she added.
Thakur also emphasized the need to study state-level success stories, particularly Karnataka, Tamil Nadu and Telangana, to understand what early policy and infrastructure choices helped attract GCCs.
'Whether we need to replicate these models or enhance them further is something we need to deliberate today. Perhaps a bit of both,' she said.
The rapid expansion of GCCs into engineering, research and development (R&D), artificial intelligence (AI), and emerging technologies underscores the need for curriculum reform, Thakur added.
She also suggested the introduction of specialized engineering courses in ITIs and greater alignment between industry needs and academic training.
Highlighting that India's demographic advantage continues to play a critical role, with 2.1 million STEM (science, technology, engineering and mathematics) graduates emerging annually, over 35% female participation in the sector, and a median workforce age of 28, she added that the talent pool needs better integration into national skilling initiatives.
Citing her experience in the ministry of corporate affairs, Thakur said programmes like the PM Internship Scheme suffered from slow uptake by the GCC sector due to delayed decision-making, despite their potential for mutual benefit.
"Unfortunately, the GCCs could not participate to the extent that we had expected, and we found the decision-making probably could have been faster," she added.
Thakur also flagged the importance of geographic diversification beyond traditional metro hubs, suggesting that many tier-2 cities with rich talent pools could become cost-effective alternatives with the right infrastructure and state support.
"Many of the states where we have a bulk of talented human resources, probably don't have the bulk of the GCCs, which could be there, which could be another way of (being) competitive on cost," she added.
As more global players, from beyond the US, look to India as a GCC destination, Thakur called for broader international outreach to attract newer businesses and investment.
She added the need to step up outreach to countries exploring GCC destinations and underscored the need for closer government-industry partnerships to shape supportive policy frameworks.