India a Conducive Destination for UK MNCs Eyeing to Set up GCCs: Inductus India offers a highly cost-effective environment compared to the UK, with lower operational and labor costs. Skilled labor in India is generally 60-70 per cent cheaper than in the UK

The Indian market is a conducive destination for UK enterprises eyeing to set up global capability centres (GCCs) as it offers an innovative, cost-effective digital infrastructure and a workforce with minimal operating expenses, according to a report by Inductus GCC. UK-based companies like HSBC, Standard Chartered, and Barclays already have their GCCs in India.

"Businesses can establish their GCC in India with the best amenities by using models like COPO (company-owned partner operated). Also, businesses can monitor their operations in real time with the use of digital twin processes," Inductus said.

The COPO model enables an enterprise to establish a GCC with absolute control over intellectual assets (IP), agility, and scalability while the partner manages day-to-day operations, ensuring zero liability, compliance, and maximum efficiency.

India offers a highly cost-effective environment compared to the UK, with lower operational and labor costs. Skilled labor in India is generally 60-70 per cent cheaper than in the UK. This percentage reflects the significant cost advantage that companies can leverage when setting up GCCs in India.

The second advantage, Inductus highlights, is access to a skilled workforce. AI is transforming careers in India, with 94 per cent of professionals believing AI skills will boost career growth, according to a 2025 study by Emeritus.

"Indian workers lead global AI adoption, with 96 per cent using AI tools at work. India has a vast pool of skilled professionals, especially in technology, finance, engineering, and operations. This enables UK companies to tap into top talent for critical functions like software development, data analysis, and customer service," the Inductus report stated.

India is rapidly becoming a hub for digital transformation. UK companies benefit from cutting-edge innovations in areas such as artificial intelligence, machine learning, cloud computing, and automation, enhancing their global competitiveness.

Moreover, India offers scalability with a large, flexible labor force that allows companies to scale operations quickly without the need for significant upfront investments, making it easier to adapt to market changes or business demands. Further, tax incentives, SEZ benefits, multiple GCC policies of individual state governments, and pro-business reforms make it a highly attractive investment destination.

UK enterprises are battling several adversaries which in turn is an opportunity for India to help set up GCCs. Economic uncertainty is the most frequent issue reported by UK enterprises with 29 per cent saying that it is currently influencing their turnover. While it is still a smaller percentage than in 2022, more firms are citing this as a challenge now than they did a few months ago. The cost of labour, the cost of materials (18 per cent), competition (18 per cent), and a lack of domestic demand (17 per cent) are other frequent issues that each affect somewhat less than 5 per cent of enterprises.

"As the UK contends with macroeconomic challenges, including inflationary pressures, stagnation, and rising labor costs, India offers a highly attractive alternative, providing UK enterprises with access to cost-efficient operational models, a technically proficient workforce, and advanced digital infrastructure. The ongoing discussions around a Free Trade Agreement (FTA) further enhance the economic synergy between the two countries, paving the way for optimized trade flows and investment," the report stated.