Gujarat's GCC Push: Attracting Global Capability Centers with a ₹10,000 Crore Plan
Gujarat GCC Policy 2025-2030 Quick Analysis
India has around 1,600–1800 GCCs with about 150 of them located in tier-2 cities. Ahmedabad, Mysuru, Vadodara, Nashik, Tirunelveli, Bhubaneswar, and Coimbatore have so far emerged as key hubs among the tier 2 cities.
Considering the near term, a 30%–40% increase in demand for GCCs in tier-2 cities is expected. In the medium to long term, Tier-2 cities will drive more growth as the cities offer a 10%–35% lower cost of living compared to the nearest Tier-1 location. Currently, 11%-15% of India’s tech talent resides in tier-2 and tier-3 cities, and talent pool costs are 25%-30% lower than those in mature hubs, with a 50% cost savings in real estate rentals compared to mature hubs.
This is also corroborated by the fact that some of the large MNC banks are setting up their presence in these key tier 2 cities in India
With the announcement in the budget to focus GCCs in Tier-2 cities, will be initiated, to provide employment and also focus on providing relevant skills to people; this will boost the investments from overseas.
Introduction of Gujarat GCC Policy 2025-2030
Last week, the Gujarat government launched Global Capability Centres (GCCs) 2025-2030 to establish 250+ GCC in Gujarat with a projected investment of over ₹10,000 crores, generating more than 50,000 job opportunities.
The policy focuses on various incentives in the form of CAPEX and OPEX support to position Gujarat as a premier hub for Global Capability Centers by driving high-value employment, skill development, innovation, and digital transformation.
The Gujarat Global Capability Centre (GCC) Policy includes the following key provisions:
1. Establishment of at least 250 new GCC units in Gujarat, generating over 50,000 employment opportunities.
2. Expected investment inflow exceeding ₹10,000 crore.
3. Capital expenditure (CAPEX) assistance of up to ₹50 crore for units with a Gross Fixed Capital Investment (GFCI) below ₹250 crore and up to ₹200 crore for those with a GFCI above ₹250 crore.
4. Operational expenditure (OPEX) assistance of up to ₹20 crore for units with a GFCI below ₹250 crore and up to ₹40 crore for those with a GFCI above ₹250 crore.
5. Employment generation incentives under GCC policy, includes one-time assistance of 50% of one month’s Cost-to-Company (CTC) for newly recruited local employees retained for at least one year, with up to ₹50,000 for male employees and ₹60,000 for female employees.
6. A 7% interest subsidy on term loans under the Special Incentive Policy, with a cap of ₹1 crore.
7. Reimbursement of the employer’s statutory Employee Provident Fund (EPF) contribution under the Atmanirbhar Gujarat Rojgar Sahay Yojana, covering up to 100% for female employees and 75% for male employees.
8. Full reimbursement of electricity duty paid to the Government of Gujarat.
9. Skill development incentives, offering up to 50% reimbursement of course fees for working professionals and up to 75% for undergraduate and graduate students.
10. Financial support for quality certification, covering up to 80% of certification costs, subject to a maximum of ₹10 lakh.
It will increase competitiveness among other states and will help Gujarat attract more GCC investment in the state.