The Karnataka government has recently introduced the Global Capability Centres (GCC) Policy 2024, with the aim of positioning the state as a global innovation hub and creating 3.5 lakh jobs by 2029. The policy targets the establishment of 500 new GCCs in the state, bringing the total to 1,000 and generating an economic output of $50 billion. The government is also targeting 330 Forbes 2000 companies to set up their GCCs in Karnataka by 2030.
The GCC policy focuses on regional development, particularly through the ‘Beyond Bengaluru’ initiative. This program aims to decentralize GCC activities by promoting cities like Mysuru, Mangaluru, and Tumakuru as viable alternatives for establishing new centres. The government is dedicated to providing incentives and promoting innovation in tier 2 cities, in order to democratize opportunities for prosperity.
The policy has four key pillars: workforce development, innovation ecosystem enhancement, regulatory reforms, and tailored incentives. It includes initiatives such as the creation of 1 lakh internships and a global leadership development skilling program to equip the workforce with advanced skills in technologies like artificial intelligence and machine learning.
Bengaluru currently hosts 875 GCC units, contributing significantly to sectors like IT, banking, and life sciences. However, the government aims to extend this dominance to other regions through the ‘Beyond Bengaluru’ cluster seed fund and infrastructural investments such as expanding metro networks and enhancing airport connectivity.
Industry representatives have welcomed the policy, with a senior GCC executive stating that Karnataka’s targeted approach with infrastructure and talent skilling ensures seamless expansion for businesses. The policy also includes a dedicated GCC Acceleration and Investment Council and specific fiscal incentives for enterprises establishing operations outside Bengaluru.
The state is also setting up innovation hubs and centres of excellence in AI, cybersecurity, and quantum computing to foster advanced research. The government’s goal is to position Karnataka as a global leader in the GCC landscape, with plans to double its current contribution of $22.2 billion to the GCC market by 2029.
In conclusion, the Karnataka government’s GCC policy 2024 is a significant step towards bolstering the state’s reputation as a global innovation hub and creating job opportunities. With its focus on regional development and tailored incentives, the policy aims to attract more GCCs to the state and promote balanced growth across different regions.
