Ecosystem, AI to shape next phase of India's GCC growth: GIFT City CEO
New Delhi, July 9
The next generation of global capability centres will be driven by the strength of the ecosystem they operate in rather than location or incentives alone, Sanjay Kaul, Group CEO and Managing Director of GIFT City, said on Thursday.
Speaking at the session on "The Evolving GCC Ecosystem: Key Insights" during the second edition of the National CII GCC Business Summit organised by the Confederation of Indian Industry (CII) in New Delhi, Kaul said the rapid adoption of artificial intelligence (AI) across industries has made the need for robust digital infrastructure and innovation-friendly regulatory frameworks more critical than ever.
"With AI entering all spheres of industry, we need a robust ecosystem supported by strong connectivity and digital infrastructure. We also need an ecosystem where innovation can thrive, backed by a regulatory framework that facilitates it. We have it in GIFT City," he said.
Kaul said similar ecosystems across the country would enable GCCs to flourish, adding that future GCCs would increasingly choose destinations offering integrated capabilities rather than isolated fiscal incentives.
"The next generation of GCCs would not be driven purely by locational factors or by incentives but by an ecosystem. They will look for a strong ecosystem where one system feeds another; it is a whole continuum," he said.
He noted that while GCCs initially established operations in India because of the country's large talent pool, they are now being attracted by India's expanding capabilities and the broader ecosystem supporting innovation, making the country an even more compelling destination for global enterprises.
According to Kaul, companies are increasingly prioritising locations that offer quality infrastructure, digital connectivity, predictable regulations, high standards of living and opportunities for innovation instead of standalone incentives.
The session also examined India's emergence as the world's leading GCC destination, with speakers observing that the country has moved beyond cost arbitrage to capability arbitrage and is now entering an era of "control arbitrage", where global companies are entrusting Indian GCCs with strategic decision-making and enterprise-wide transformation.
— IANS
Reader Comments
Great to see India's GCC story evolving. But let's be real - while GIFT City has potential, the rest of India still struggles with basic infrastructure and regulatory consistency. We need replicable ecosystems across states, not just one-off success stories. Hope the government takes note.
Finally someone talking about ecosystem over incentives! As someone working in a GCC, I can tell you that talent quality, digital infrastructure, and ease of doing business matter way more than tax breaks. India needs more integrated hubs like GIFT City. AI-driven innovation is the future and we're well-positioned if we get the basics right.
Interesting point about 'control arbitrage' - Indian GCCs now managing global strategic decisions. But we must ensure our educational system keeps pace with AI requirements. Just building infrastructure isn't enough; we need updated curricula, upskilling programs, and research partnerships. The ecosystem Kaul talks about must include talent development too.
I work in a multinational GCC and have seen the shift firsthand. Five years ago, we were just implementing tasks from headquarters. Now our Indian team is driving global AI strategy. The ecosystem approach is spot on - when you have good connectivity, reliable power, and predictable policies, innovation happens naturally. GIFT City is proof of concept. Let's replicate this across Bangalore, Hyderabad, Pune too!
Good vision but implementation matters. We've seen many such promises before. The real test will be whether other states can create similar ecosystems without getting bogged down by bureaucracy. Also, what about tier-2 cities? They have talent but lack the ecosystem. We need inclusive growth, not just Ahmedabad-centric
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