India hosts half of the world's GCCs, emerges as second-largest hub for enterprise AI talent: CEA
New Delhi, July 9
India now hosts around half of the world's Global Capability Centres and has emerged as the second-largest base for enterprise artificial intelligence talent globally, reflecting the country's growing role in innovation, technology and high-value global business operations, Chief Economic Adviser V. Anantha Nageswaran said on Thursday.
Addressing the CII GCC Business Summit, Nageswaran said India's GCC ecosystem has undergone a remarkable transformation over the past two decades, evolving from a handful of back-office operations into more than 2,000 centres employing over 2 million professionals.
He said employment in the sector is now moving towards 2.3 million, while annual revenues have exceeded $60 billion and are on track to approach $100 billion.
"India now hosts around half of the world's GCCs. This did not happen by accident; it happened because of our people, because talent is the heart of the matter," Nageswaran stated.
"These centers first came to India for cost; they stayed for capability," he mentioned.
The CEA said GCCs now contribute nearly 2 per cent of India's gross domestic product (GDP) and account for a significant share of new office space developed across major Indian cities. He noted that no other country comes close to India's scale, with around half of the world's GCCs now operating from the country.
Explaining the evolution of the sector, Nageswaran said Indian GCCs have moved far beyond their traditional role of providing cost-efficient back-office support. Today, they undertake high-value work across technology, engineering, research, product development, analytics and digital transformation.
He said global banks manage risk systems and trading platforms from Mumbai and Bengaluru, automobile manufacturers design vehicles and embedded systems from Chennai and Pune, semiconductor firms carry out chip design in India, pharmaceutical companies conduct clinical analytics, and consumer companies develop digital products from their Indian centres.
"The intellectual property created in these centres is real. The patents are filed here, the products are shipped from here, and global roles are increasingly held by people sitting here," he said, adding that Indian GCCs have become the core of operations for many multinational companies.
— IANS
Reader Comments
As someone working in a GCC in Bangalore, I can confirm this. The work we do now is genuinely cutting-edge – chip design, AI models, full product development. The CEA's line "came for cost, stayed for capability" is spot on. We're not just a cheap labor hub anymore.
The numbers are impressive, but I hope this growth translates into better working conditions and wages for the average employee, not just the big companies. Yes, we have talent, but the attrition rates and unrealistic targets in some GCCs are also real. Let's aim for quality of jobs too.
"$60 billion and growing to $100 billion" – that's revenue, but how much of that actually stays in India? We need to ensure these GCCs are paying fair taxes here and training local talent, not just importing talent for short-term gigs. Good news, but let's be vigilant about economic benefits.
As an AI researcher, this news is a huge validation. The fact that we are now the second-largest hub for enterprise AI talent means our universities and upskilling programs are paying off. But we need to keep investing in fundamental research and not just application-based work. Kuddos to everyone making this happen.
Interesting to see India's transformation from a back-office to a front-office for global R&D. I've seen firsthand how Indian teams in Pune are designing auto parts for global models. The CEA is right – patents are filed from India now. This ecosystem is a win-win for both India and the MNCs.
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