Karnataka launches India’s first GCC Policy, aiming $50 billion economic output by 2029

The state government has now set an ambitious goal to establish 500 new GCCs by 2029, generate 3.5 lakh jobs, and drive an economic output of $50 billion. The policy has been crafted after extensive consultations with over 500 industry experts.

Nolan Patrick Pinto

Published Sep 27, 2024 | 5:51 PM ⚊ Updated Sep 27, 2024 | 5:51 PM

Unveiling of the Karnataka GCC policy.

In a first in India, the government of Karnataka launched the draft of the Global Capability Centres (GCC) Policy (2024-2029) on Friday, 27 September.

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To foster the GCC ecosystem

Speaking at the launch event in Bengaluru, Karnataka Electronics, Information Technology (IT), Biotechnology (BT) and Science & Technology (S&T) Minister Priyank Kharge highlighted the significance of the policy and said: “Today, we proudly launch India’s first dedicated policy for Global Capability Centres, reaffirming Karnataka’s position as the top destination for innovation and business transformation.

The minister added that through this policy, the government expected annual growth of 12-14 percent and foresees Karnataka holding nearly 50 percent of India’s GCC market share by 2029.

Karnataka IT, BT and S&T Secretary Dr Ekroop Caur emphasised that the policy sought to expand the GCC ecosystem beyond Bengaluru through the introduction of the Beyond Bengaluru Package.

According to officials, Karnataka is already a leader in the GCC sector, with Bengaluru housing over 30 percent of the country’s GCCs and 35 percent of its workforce. The policy builds on this momentum by aiming to foster innovation, talent development, and Research and Development (R&D) and ensure that the state remains a top destination for GCCs globally.

The draft policy is currently open for public comments, and the government is inviting feedback from stakeholders to further refine the framework.

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Key highlights

Global Innovation Districts: The establishment of three state-of-the-art technology parks, one in Bengaluru and two in “Beyond Bengaluru” regions, designed to foster collaboration between startups, tech leaders, and academia.
Beyond Bengaluru Package: To expand the GCC ecosystem beyond the capital, Karnataka will offer recruitment assistance, rental support, and property tax reimbursements to attract companies to other regions of the state.
Artificial Intelligence (AI) Skilling and Research: A Centre of Excellence for AI will be set up in Bengaluru, along with an AI Skilling Council to promote AI R&D and talent development. This initiative will include curriculum development and research collaborations between academia and industry.
Single Point of Contact (SPOC): A dedicated unit within the Department of Electronics, IT, BT, and S&T will streamline approvals and provide real estate support for incoming GCCs, making it easier for businesses to establish operations in Karnataka.
Investment and Talent Development: The GCC Acceleration and Investment Council, comprising global leaders and experts, will guide the state’s initiatives to attract investments and foster innovation.
Talent Pillar: The policy also aims to facilitate internships for 1 lakh individuals in leading GCCs and has set aside ₹100 crore for joint research projects between academia and GCCs.

(Edited by Muhammed Fazil)