India's next wave of GCC growth to extend beyond metros, driving balanced regional development: FM Sitharaman
New Delhi, July 9
India's next phase of global capability centre expansion will be far more geographically diverse, with Tier-II and Tier-III cities emerging as key hubs of innovation, Finance Minister Nirmala Sitharaman said on Thursday.
Addressing the CII National GCC Business Summit 2026 here, the Finance Minister said the first 2,000 GCCs were largely concentrated in metropolitan centres, but the next wave of growth is expected to spread across a wider range of cities as the geography of global value creation undergoes a transformation.
FM Sitharaman said future breakthroughs in artificial intelligence, engineering design and product development could emerge from cities such as Varanasi, Chandigarh, Visakhapatnam, Tiruchirappalli and Mysuru, just as readily as from established technology hubs like Bengaluru, Hyderabad and Gurugram.
"This locational choice is deliberate because the next phase of our GCC story cannot remain confined to a handful of metropolitan centres," the finance minister said.
The Finance Minister said that whenever a GCC establishes operations in a city, it creates a multiplier effect by generating demand for advanced skills and specialised training.
It also boosts start-ups, professional services, housing, urban infrastructure and research collaborations, while strengthening partnerships between universities, industry and local institutions.
"When a GCC establishes itself in one of these cities, there is a multiplier impact. It creates demand for advanced skills and specialised training," FM Sitharaman mentioned.
The finance minister said such developments help transform cities into vibrant innovation ecosystems and position GCCs as important drivers of balanced regional economic development.
"In doing so, GCCs become catalysts for balanced regional development. This presents an important partnership opportunity for GCCs in shaping the next generation of innovation-led economic regions across India," FM Sitharaman explained.
Highlighting the role of states, FM Sitharaman said the response from state governments has been encouraging, with each state possessing distinct competitive advantages.
— IANS
Reader Comments
This is music to my ears! As someone who moved from Bengaluru to Visakhapatnam for work, I can confirm the quality of life is so much better - less traffic, cleaner air, and affordable housing. With GCCs spreading out, my friends back in Hyderabad are now considering similar moves. Local talent will flourish without having to migrate to metros. Balanced development is exactly what India needs! 🎉
Interesting perspective from FM Sitharaman. As someone who works in a GCC in Gurugram, I see the logic. But talent remains a concern - are tier-2 cities ready with enough skilled graduates for advanced roles in AI and engineering design? The multiplier effect only works if there's a solid talent pipeline. Let's hope the education system catches up quickly.
Great initiative but execution is key! I've seen how GCCs in Chandigarh have transformed the local economy - more start-ups, better colleges, and even co-working spaces. If the government provides tax incentives and faster clearances for cities like Varanasi and Tiruchirappalli, we could see a real revolution. But one concern - will state governments cooperate on land and regulations? 🤔
Having worked in Bangalore for over a decade, I see the logic behind decentralization. But there's a catch - most MNCs want ecosystem readiness. Will these cities have enough service providers, vendors, and support staff? Tier-2 growth is good in theory, but it'll need massive private investment in housing and retail too. Still, respect to the FM for thinking beyond the usual suspects!
A Ananya R < We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.