Union Budget 2025 Promotes Growth of GCCs in Tier-2 Cities in India The proposed framework for expanding GCCs into tier-2 cities marks a strategic pivot in India's tech evolution and the recognition of the immense potential of GCCs as a force multiplier to our economic growth.
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A national framework will be formulated as guidance to states for promoting Global Capability Centers (GCCs) in emerging tier-2 cities, Finance Minister Nirmala Sitharaman said at the Union Budget 2025. With a focus on skilling, digital transformation, and industry-led workforce development, this budget can play a key role in accelerating the growth of GCCs in India.
"This will suggest 16 measures for enhancing availability of talent and infrastructure, building byelaw reforms, and mechanisms for collaboration with industry," Sitharaman said.
"The proposed framework for expanding GCCs into tier-2 cities introduced by the Finance Minister marks a strategic pivot in India's tech evolution and the recognition of the immense potential of GCCs as a force multiplier to our economic growth. With 80 per cent of global firms yet to establish GCCs in India, this initiative unlocks tremendous potential for transforming India's attractiveness as the global GCC capital, while creating millions of skilled jobs across the country's emerging urban centers," said Lalit Ahuja, CEO of ANSR, a GCC consulting firm.
In fact, ANSR has partnered with organizations such as KDEM, GIFT City, and several state governments to amplify the GCC expansion to tier-2 cities. "It's truly heartening to see the Finance Minister acknowledge the GCC industry in this year's budget. This recognition marks a pivotal moment for our sector, poised to break through the sound barrier of growth and emerge as a vital component of India's IT landscape," said Ahuja.
According to TeamLease Degree Apprenticeship, a national guidance framework for states to attract and expand GCCs must include targeted tax reliefs similar to SEZ benefits, a separate apprenticeship quota, and structured incentives to encourage GCCs in tier-2 and -3 cities.
"Moreover, a dedicated academia-industry-government skilling framework tailored for GCCs can enable faster workforce ramp-ups and seamless global mobility for apprentices. By integrating apprenticeships into tax breaks and policy support, the government can ensure a steady pipeline of future-ready talent while strengthening India's positioning as a premier global GCC hub," said Dhriti Prasanna Mahanta, Vice President, TeamLease Degree Apprenticeship.
"With a forward-thinking approach, the 2025-26 Budget ensures that India's youth and industries are equipped with the skills, resources, and opportunities to thrive in a competitive global economy. By fostering an enabling ecosystem for GCCs, this budget has the potential to unlock India's vast talent pool, accelerate innovation, and drive long-term economic growth in the digital and technology-led sectors," Mahanta added.
