Karnataka Launches Pioneering Global Capability Centre Policy, Aims for $50 Billion Economic Output

Karnataka Unveils Groundbreaking GCC Policy

In a landmark move, Karnataka has become the first Indian state to launch a dedicated Global Capability Centre (GCC) policy, setting ambitious targets for economic growth and job creation in the technology sector 1

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. The policy, unveiled by Chief Minister Siddaramaiah, aims to double the number of GCCs in the state to 1,000 and generate an economic output of $50 billion by 2029 2

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Ambitious Targets and Incentives

The GCC policy sets forth several key objectives:

1. Increase the number of GCCs from the current 400+ to 1,000 by 2029
2. Boost economic output from $36 billion to $50 billion
3. Create employment opportunities for 400,000 professionals
4. Expand GCC presence beyond Bengaluru to other cities in Karnataka

To achieve these goals, the state government has outlined a range of incentives for companies establishing GCCs in Karnataka. These include reimbursement of stamp duty and registration charges, power tariff subsidies, and patent filing cost reimbursements 3

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Focus on Innovation and Skill Development

The policy emphasizes innovation and skill development, with plans to:

1. Establish Centers of Excellence (CoEs) in emerging technologies
2. Provide rental reimbursements for companies setting up GCCs in government-owned IT parks
3. Offer special incentives for GCCs focusing on deep tech areas like AI, machine learning, and cybersecurity

Expanding Beyond Bengaluru

A key aspect of the policy is the promotion of GCC establishment beyond Bengaluru. The government aims to encourage companies to set up centers in other cities across Karnataka, fostering balanced regional development and creating job opportunities in tier-2 and tier-3 cities 1

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Industry Response and Future Outlook

The policy has been well-received by industry leaders, with many praising Karnataka's proactive approach to attracting global investments. Priya Kanduri, Chair of the NASSCOM GCC Council, commended the state's efforts, stating that the policy would further strengthen Karnataka's position as a leading destination for GCCs 2

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As Karnataka implements this pioneering policy, it is expected to enhance the state's competitiveness in the global tech landscape and create a robust ecosystem for innovation and growth in the GCC sector.