September 23, 2025

Big news from the Confederation of Indian Industry (CII)! They're shouting out to Indian states: set up special facilitation cells and single-window clearance systems just for Global Capability Centres (GCCs). Why? To make it smoother and faster for these centres to grow and succeed. But that's not all! CII also pushes for pumped-up digital infrastructure and direct money support to help GCCs roar louder. CII isn’t stopping there. They want states to launch cool programs like joint accelerators and venture-building to link GCCs closely with startups and the whole economy. They've released a guide called "Suggestions for a State Framework for GCCs" aiming to turn tier-2 and tier-3 cities into shining GCC hubs—not just the usual big players like Bengaluru or Delhi. India already shines with over 1,700 GCCs employing 1.9 million people! These centres brought in $64.6 billion in FY24, and guess what? Expected to hit a whopping $100 billion by 2030. But most are still in big metros. CII director-general Chandrajit Banerjee says, "The Model State GCC Policy released by the CII offers a ready framework, helping states design their own strategies, accelerate GCC growth beyond the metros, and generate large-scale, high-quality jobs." So what’s the secret sauce to become a GCC magnet? CII’s framework highlights four magic ingredients: physical readiness, a strong digital backbone, city infrastructure, and a liveable environment. Skilled workers matter, so it urges states to invest in deep skilling, partner with academics, and embrace AI. The talent race is tough because most skilled workers are in just a few states. The solution? Offer financial incentives that encourage GCCs to set up small satellite offices in smaller cities. Why smaller cities? Because they’re cheaper—up to 30% lower rent, 25-30% less talent cost, and 30% lower employee turnover. CII suggests a smart double strategy: boost tier-1 city strengths while activating tier-2 and tier-3 cities for shared growth. Also, sweet financial treats like land rebates, capital grants, and duty waivers can attract big GCC players to smaller towns. States should also create digital economic zones tailored for GCCs. To make a splash, states can brand themselves as the go-to place for specific GCC strengths—like "The BFSI and Fintech Capital of India" or "The Hub for Automotive ER&D and Smart Manufacturing." This sizzling advice follows last week’s CII national framework, aiming to blend federal and state plans so India can proudly wear the crown of the "Gateway to Global Capability." The future looks bright, vibrant, and full of new GCC hotspots outside the usual metros. Are India’s tier-2 and tier-3 cities ready to steal the spotlight?

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Tags: Global capability centres, Cii, Indian economy, Tier-2 cities, Digital infrastructure, Startups,