Amid GCC-IT services overlap concerns, how industry is pushing for global centres, Pg 15.

Key Highlights:

• CII has outlined steps for India to promote Global Capability Centers (GCCs), which are becoming key operation hubs.
• India hosts nearly half of all GCCs globally, with numbers potentially rising from 1,800 to 5,000 by 2030.
• The GCC sector contributes around $68 billion as Direct Gross Value Addition (GVA), approximately 1.8% of India's GDP.
• India-based GCCs employ over 2 million professionals in 2025, with potential to generate 20-25 million jobs through GCC-led growth.

Detailed Insights:

• In the 1990s, India became known as the world's back office; now, it exports high-tech services like data analysis and R&D.
• India has become the equivalent of China for tech hardware, hosting approximately 1,600 GCCs from multinational companies across various sectors.
• Key trends driving this movement include a large pool of engineers, relatively cheap labor, lower real estate costs, and simpler labor laws.
• 64% of GCCs in India serve US-headquartered organizations, while 28% support companies in Europe, Middle East, and Africa.
• The GCC sector could contribute between $470-$600 billion to India’s GDP by FY30, including direct, indirect, and induced economic impacts.
• Every direct job in a GCC generates one indirect job in allied services and three induced jobs through spending on housing, retail, and education.
• CII suggests identifying high-priority sectors for GCC promotion and reforms in taxation and infrastructure to further boost growth.
• CII recommends concessional tax regimes for centers engaged in R&D, product development, and IP creation within notified digital economic zones.

Key Concepts Involved:

• Global Capability Centers (GCCs): Centers established by multinational corporations in different countries to perform specific business functions.
• Gross Value Addition (GVA): A measure of the value of goods and services produced in an area, industry, or sector of an economy.
• Digital Economic Zones: Designated areas with regulations designed to promote digital economy activities through tax incentives and infrastructure.