Karnataka Sets Ambitious Goal to Double Global Capability Centres by 2029; Aims to Create 3,50,000 New Jobs by 2029 The government is keen to expand beyond Bengaluru, promoting cities such as Mangaluru, Mysuru, and Tumakuru as attractive alternatives for foreign companies to set up operations.
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Karnataka has unveiled an ambitious plan to double the number of Global Capability Centres (GCCs) in the state to 1,000 by 2029, as outlined in a draft policy released on Friday. The initiative also aims to create 3,50,000 new jobs and attract more foreign companies to establish local offices, reinforcing the state's position as a key player in India's tech landscape. The draft policy marks the first of its kind by any Indian state and offers a range of incentives to lure foreign investors.
These include reimbursements on office rents and patent fees, along with exemptions from electricity duties. Companies will benefit based on the number of employees they add to their GCC operations. The state government is also eyeing an economic output of $50 billion from these new centres by the end of the decade. Karnataka's push to expand its GCC ecosystem comes as the sector shows promising growth. A recent report by Nasscom and Zinnov, reported via HT, projected that India's GCC footprint could rise to 2,100-2,200 by 2030, with an employee base of 2.5 to 2.8 million. This underscores the potential for significant growth and job creation in the coming years, with Karnataka poised to be at the forefront.
Bengaluru, Karnataka's capital and India's tech hub, has traditionally been the focal point for most GCCs. However, the government is keen to expand beyond Bengaluru, promoting cities such as Mangaluru, Mysuru, and Tumakuru as attractive alternatives for foreign companies to set up operations. This move aims to spread economic development across the state, ensuring a more balanced distribution of tech-driven growth.
In addition to incentivizing foreign companies, Karnataka's policy includes several initiatives to boost innovation and local talent. The government plans to establish three new technology parks and fund skills training courses, particularly those focused on artificial intelligence. Research grants will also be offered for projects that drive cutting-edge advancements in tech.
With these measures, Karnataka aims to position itself as a global hub for technology and innovation, fostering economic growth while ensuring that job creation and development extend beyond its traditional tech centres.
