Key Points

The Confederation of Indian Industry has released a model state policy to transform India's Global Capability Centre landscape. This framework aims to create millions of high-quality jobs while expanding innovation ecosystems beyond metropolitan areas. The policy provides actionable measures across infrastructure development, fiscal incentives, and regulatory frameworks to make Tier-2 and Tier-3 cities attractive destinations. CII estimates this strategy could contribute nearly $200 billion in direct economic value by 2030.

Key Points: CII Model GCC Policy Aims for Millions of High-Quality Jobs Across India

  • Policy aims to decentralize GCCs from six Tier-1 cities to Tier-2 and Tier-3 hubs
  • Proposes fiscal incentives like tax holidays and customs duty exemptions for R&D
  • Recommends investment in digital infrastructure including AI computing and data centers
  • Encourages collaboration between GCCs, startups, and research institutions for innovation
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CII's model state GCC policy aims to create millions of high-quality jobs across India: Director General

CII's new model state policy for Global Capability Centres targets millions of jobs, expanding innovation beyond metros and boosting India's global digital services leadership.

"States that act early and decisively will benefit from high-quality employment, stronger innovation ecosystems, and deeper integration into global value chains - Chandrajit Banerjee, CII Director General"

New Delhi, Sep 21

The Confederation of Indian Industry (CII) on Sunday released its Model State Policy on Global Capability Centres (GCCs), offering a comprehensive roadmap for states to attract, support, and scale the next generation of global enterprise hubs.

The policy aims to create millions of high-quality jobs, expand innovation ecosystems beyond metropolitan areas, and strengthen India’s position as a global destination for knowledge and digital services.

CII Director General, Chandrajit Banerjee, said the rapid growth of GCCs over the past two decades has been a key driver of India’s economic journey.

"To sustain leadership and deepen our integration into global value chains, states must adopt clear, competitive, and innovation-oriented policies. This model policy provides a ready framework to guide states, accelerate GCC growth beyond the metros, and generate high-quality employment," he said.

Currently, nearly 95 per cent of India’s 1,800-plus GCCs are concentrated in six Tier-1 cities.

The CII policy seeks to change this by enabling Tier-2 and Tier-3 cities to become attractive destinations for global enterprises.

It provides actionable measures across infrastructure development, fiscal incentives, regulatory frameworks, digital infrastructure, talent development, and sustainability, allowing states to create seamless, resilient, and globally competitive GCC ecosystems.

The policy proposes the establishment of state-level Facilitation Cells as single points of contact for investors, along with targeted fiscal and regulatory incentives such as tax holidays, customs duty exemptions for imported R&D equipment, and viability gap funding for integrated infrastructure projects.

It also encourages investment in digital infrastructure, including AI/ML computing support and edge data centres, to ensure emerging hubs operate at global standards.

In addition, the policy recommends collaboration between GCCs, start-ups, and research institutions to drive innovation in technologies like quantum computing, ESG-aligned solutions, and enterprise software.

Green infrastructure, smart mobility, affordable housing, and civic amenities are highlighted as key factors to make state-level hubs attractive for professionals and their families.

Data security and IP facilitation frameworks tailored to local conditions are also emphasised to support data-intensive GCCs.

Banerjee said the model policy is designed to make GCC growth geographically inclusive.

“States that act early and decisively will benefit from high-quality employment, stronger innovation ecosystems, and deeper integration into global value chains,” Banerjee stated.

"CII is ready to partner with states to operationalise these recommendations through task forces, investment promotion campaigns, and skill development initiatives," he added.

The CII estimates that a well-executed GCC strategy across India could contribute nearly $200 billion in direct economic value by 2030.

- IANS

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Reader Comments

P
Priya S
As someone who moved from Indore to Bangalore for better opportunities, I would love to see these jobs come to my hometown. The infrastructure development mentioned is crucial - without good connectivity and amenities, professionals won't relocate.
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Aman W
$200 billion by 2030 sounds ambitious but achievable if states actually implement this properly. Hope they focus on sustainable development and not just concrete jungles. Green infrastructure is a welcome mention!
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Sarah B
Working in a GCC in Hyderabad, I've seen the positive impact on local economy. Expanding this to smaller cities could be transformative. The single window clearance system is much needed - bureaucracy often delays projects.
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Karthik V
While the policy looks good on paper, implementation will be key. States need to work on improving power supply, internet connectivity and transportation first. Many tier-2 cities still face frequent power cuts and poor internet.
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Nisha Z
Great initiative! This will help reduce migration to metro cities and balance regional development. Hope they include provisions for women professionals and childcare facilities to encourage more women to join workforce. 👩‍💼
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Michael C
The focus on AI/ML infrastructure and quantum computing is forward-thinking. India needs to move beyond traditional IT services to high-value innovation. This could position us

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