Published Sep 27, 2024 | 8:33 AM ⚊ Updated Sep 27, 2024 | 8:48 AM
The strategic initiative highlights Karnataka’s commitment to solidifying its position as a premier destination for GCCs, leveraging its strong technology infrastructure, skilled workforce, and innovative governance.(Wikimedia Commons)
Karnataka will become the first Indian state to roll out an exclusive Global Capability Centers (GCC) policy on Friday, 27 September. The policy is aimed at bolstering new operations and fostering a resilient ecosystem for businesses.
IT Minister Priyank Kharge said in an X post that the strategic initiative highlighted Karnataka’s commitment to solidifying its position as a premier destination for GCCs, leveraging its strong technology infrastructure, skilled workforce, and innovative governance.
By offering a wide range of incentives and promoting expansion beyond Bengaluru, the policy is set to revolutionise the state’s industrial landscape, positioning Karnataka as a leader in India’s digital revolution.
Karnataka stands as the GCC hub for key industries in India, hosting 44 percent of the country’s retail and Consumer Packaged Goods (CPG) GCCs, 33 percent of Banking, Financial Services, and Insurance (BFSI), 31 percent of Healthcare, and 27 percent of Manufacturing GCCs, Kharge said.
Kharge, who also holds Biotechnology, Rural Development, and Panchayat Raj portfolios, will launch the GCC policy on Friday.
Earlier this year, Karnataka launched the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) Policy (2024-29), which is set to revolutionise the AVGC industry.
As the state’s leadership in the IT, biotechnology, and pharmaceutical sectors continues to grow, the GCC policy is expected to further strengthen Karnataka’s standing as a premier destination for capability centres.
“We also have Global Capability Centres in the IT, biotechnology, and pharmaceutical sectors. Karnataka hosts a GCC from Novo Nordisk, the world’s largest insulin manufacturer. When it comes to GCCs, Karnataka stands tall compared to other states, particularly in the IT, IT-enabled services (ITeS), and automotive sectors,” an official told South First.
“Under the GCC policy, we offer incentives in four different categories: skilling, ‘Beyond Bengaluru’, and incentives based on talent acquisition and the capacity of the GCC,” the official added requesting anonymity since he was not authorised to speak to the media.
On the role of Karnataka’s skilled workforce and technology infrastructure in the success of GCC, he said, “It will play a vital role in the success of GCCs. No other state can provide a human resources structure like we do.”
“It is why GCCs can set up training programmes in Bengaluru and North Karnataka. We are now working to expand these Bengaluru-based GCCs to other regions under the ‘Beyond Bengaluru’ initiative. We are also committed to supporting GCCs and boosting our global competitiveness,” he explained.
“Karnataka is the first state to introduce a GCC policy. No other state has rolled out such a policy, and we believe none will shortly. Additionally, Karnataka was the first to launch an AVGC-XR policy. Our IT and biotechnology policies are also pioneering, with other states following our lead,” he added.
Terming Karnataka a pathbreaker in policy innovation, the official cited the GCC policy as proof of the state’s forward-leaning approach. “In terms of international collaboration, we are already working with industry chambers and cooperative unions such as the US-India Business Council (US-IBC).”
“Karnataka has established a focused partnership with US-IBC specifically for GCC development. While these partnerships are crucial, they do not work for us directly but in collaboration with our goals. We’ve also partnered with the American Chamber of Commerce (AMCHAM) and the Global Innovation Alliance, which includes 28 other countries,” he further stated.
Regarding job and skill development opportunities expected to create through the GCC policy, the official said the centres would offer a wide spectrum of jobs for everyone in the state, be it technical or non-technical fields. “While we produce many engineers annually, not all of them meet the skill requirements of global corporations.”
“That’s why the IT Department and the Skill Development, Entrepreneurship, and Livelihood Department have partnered with US-IBC, Amsam, and others to create a comprehensive skill policy,” he said.
“The Nipuna Karnataka scheme is a direct result of this collaboration, bringing together industries and academic institutions to equip youth with the best possible skills,” the official added.
The policy aims to establish 500 new GCCs across Karnataka over the next three to four years. “While Bengaluru will remain in focus, these centres will also be set up in Hubballi and Mysuru. Depending on industrial needs, the policy may extend to Mangaluru, and we are negotiating further expansion beyond Hubballi and Belagavi,” the official elaborated.
Minister Kharge said the policy would create a thriving business environment and establish the state as the country’s premier destination for GCCs.
“Karnataka leads India’s digital revolution with Global Capability Centers (GCCs) as key growth drivers. Our state hosts innovative, diversified GCC hubs across vital industries, powered by skilled professionals and advanced tech infrastructure,” the minister said on X.
Karnataka leads India’s digital revolution with Global Capability Centers (GCCs) as key growth drivers. Our state hosts innovative, diversified GCC hubs across vital industries, powered by skilled professionals and advanced tech infrastructure.
To further strengthen our… pic.twitter.com/9IjDXqLkm2
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) September 25, 2024
“To further strengthen our position, we are implementing strategic interventions to create a resilient ecosystem for GCCs. I’m proud to announce that the Government of Karnataka will introduce India’s first GCC policy, supporting new operations in our state,” he said.
Earlier in July 2024, Kharge said an analysis suggested that Karnataka has the potential to emerge as a leading hub for GCCs, with the possibility of hosting over 15 percent of Forbes 2,000 companies.
“By 2030, the state could accommodate approximately 330 of these firms. Additionally, GCC employment in Karnataka is projected to grow at a compound annual growth rate (CAGR) of 10 percent,” the minister added.
(Edited by Majnu Babu).
