India's Bold Plan to Become the Global Hub for Capability Centers

India is on the cusp of a major economic transformation, thanks to an ambitious new policy framework proposed by the Confederation of Indian Industry (CII). This visionary plan aims to position India as the undisputed global leader for Global Capability Centres (GCCs), promising a massive surge in job creation and economic prosperity.

With a clear target of generating 3-3.5 million new jobs by 2030, this initiative could fundamentally reshape India's role in the global economy.

The stakes are high, and the potential rewards even higher. The CII's strategy is designed to catapult India's share in the global GCC market from a mere 1% (value-wise) to a staggering 10%, and from 8% to an impressive 20% by volume.

This isn't just about numbers; it's about cementing India's reputation as a powerhouse of innovation, talent, and operational excellence.

Currently, India is already a significant player, hosting approximately 1,580 GCCs that employ a formidable 1.66 million people and contribute a substantial $46 billion in revenue, accounting for 1% of the nation's GDP.

These centres are pivotal in driving growth across various sectors, from technology and finance to manufacturing and healthcare. The CII's recommendations are a strategic blueprint to unlock even greater potential, transforming India into an irresistible magnet for global enterprises.

At the heart of the CII's proposal is the call for a dedicated, comprehensive policy for GCCs.

Much like the successful Special Economic Zones (SEZs), this new policy would offer tailored incentives, subsidies, and a streamlined single-window clearance system. Such a framework would dramatically simplify the establishment and operation of GCCs, making India an even more attractive destination for international investment.

Beyond policy, the plan emphasizes critical enablers.

A robust, employable talent pool is paramount. The CII advocates for a concerted effort to upgrade skills, establish new, cutting-edge engineering and management colleges, and significantly boost the number of STEM (Science, Technology, Engineering, and Mathematics) graduates. This focus on human capital ensures that India continues to supply the world-class expertise that GCCs demand.

Infrastructure development is another cornerstone.

The proposal highlights the urgent need for advanced digital infrastructure, including widespread 5G connectivity and state-of-the-art data centres. Alongside this, smart city development and the provision of affordable housing are crucial for creating vibrant, supportive ecosystems where GCC employees can thrive.

To further sweeten the deal, the CII recommends simplifying India's tax structure, offering attractive tax holidays, and importantly, removing retrospective taxation to foster a predictable and business-friendly environment.

Flexible labour laws are also on the agenda, designed to adapt to the dynamic needs of modern workplaces.

Finally, the policy aims to aggressively promote India as the preferred global GCC hub through targeted marketing and diplomatic efforts. Encouraging robust collaboration between industry, academia, and government will create a synergistic environment, fostering innovation and continuous improvement.

As CII President R.

Dinesh rightly points out, a dedicated policy is not just a wish but a necessity to fully capitalize on this opportunity. Industry experts like Anshul Lodha of EY India echo this sentiment, emphasizing India's untapped potential and the need for a conducive regulatory and policy environment. With global GCC market projections soaring to $100-120 billion by 2030, employing 4.5-5 million people, India stands at the precipice of a golden era.

The CII's new policy could be the catalyst that propels the nation to the forefront of this global revolution, securing a future of unprecedented growth and opportunity.