Key Points

The total revenue generated by these GCCs in last 5 years has grown from $40.4 billion in FY19 to $64.6 billion in FY24 with CAGR of 9.8 per cent, Jitin Prasada, Minister of State of Electronics and Information technology, said in a written reply in Lok Sabha, citing National Association of Software and Services Companies (Nasscom) data.

GCCs have grown from being support centres for basic tasks to research and development and design hubs, the minister said. Together, these GCCs employ more than 19 lakh people in the country.

In the Union Budget 2025-2026, it was declared that a national framework would be established to direct states in promoting GCCs in tier II cities, thereby fortifying India's GCC ecosystem.

The framework will make recommendations for ways to improve infrastructure and talent availability, create byelaw reforms, and establish industry collaboration mechanisms.

Further, many state governments, such as Madhya Pradesh, Uttar Pradesh, Karnataka, Tamil Nadu, and Telangana, have come up with dedicated policies to support the establishment and expansion of GCCs, the minister stated.

Earlier last week, SBI Capital Markets (SBICAPS) in its report said that the number of GCCs in India is expected to increase from 1,700 to over 2,200 by 2030.

There will be a 25-30 per cent increase in REIT asset under management (AUM) in the coming years due to a wider range of asset classes and a steady stream of investable assets, the report stated.

Leasing for office spaces broke the previous record by 20 per cent in CY24, with rents increasing and vacancy decreasing.

According to the report, momentum continues in CY25, with activity particularly strong in Bengaluru, Delhi-NCR, and Pune, according to the report by the investment banking arm of State Bank of India (SBI).

GCC were the main demand source, with multinational firms using India for core activities rather than labour arbitrage. The report predicted a 1.3 times growth for these facilities in the next few years.

- IANS