What is the GCC Policy Framework in India?
The GCC Policy Framework in India refers to the central government’s proposed national policy blueprint designed to streamline operations, reduce administrative friction and position India as a premier hub for high-value engineering, AI and enterprise capability centres. The framework was first mentioned in Union Budget 2025-26 and expanded in Union Budget 2026-27. An Inter-Ministerial Group comprising the Ministry of Electronics and IT, the Commerce Ministry and the Finance Ministry has been constituted to draft the rules. The policy aims to scale India’s GCC ecosystem from over 2,100 in 2026 to 5,000 by 2030. Key features include a single-window clearance system, expansion into Tier II cities, and long-term tax incentives for cloud and data centre entities.
Which states offer GCC incentives in 2026?
Several states have introduced dedicated GCC policies. Karnataka’s GCC Policy 2024-29 offers up to 50% rental reimbursement in the first year for Beyond Bengaluru GCCs with 100+ employees, up to 75% capex (capped at INR 3 crore) for innovation labs, and payroll support of up to INR 3,000 per employee per month. Maharashtra’s GCC Policy 2025 provides capital subsidy of up to 20% of eligible fixed capital investment, rental assistance of 10% in Zone I (MMR/Pune) and 20% in Zone II, and payroll subsidy of 40–50% for up to three years. Gujarat’s GCC Policy 2025-30 offers capex support of up to 20% for buildings and 30% for computers/software, opex support of 15% for five years, and employment incentives of up to INR 50,000–60,000 per new employee. Telangana’s GCC Policy 2025-2030 provides capex support of 20–30% for Tier II locations, 100% stamp duty reimbursement, and electricity duty exemptions for up to seven years. Tamil Nadu’s GCC Policy 2024-29 offers a PLI-style payroll subsidy of 30% in year one, 20% in year two and 10% in year three for new GCC roles paying above INR 1 lakh per month. Other states including Rajasthan, Kerala, Haryana, Madhya Pradesh, Uttar Pradesh and West Bengal have also introduced frameworks.
What are the key incentives available for GCCs?
Incentives vary by state but generally include capital subsidies, payroll subsidies, rental reimbursements, electricity duty exemptions, stamp duty exemptions, R&D grants, training support and land rebates. For example, Rajasthan offers a capital subsidy of 30% of project cost (capped at INR 10 crore), payroll reimbursement of 30% for three years, and rental assistance of 50% for three years. Madhya Pradesh offers capex subsidy of 40% (capped at INR 15–30 crore), interest assistance of 6%, and payroll subsidy of 50% in year one, 30% in year two and 20% in year three. Uttar Pradesh offers capital subsidy of 25% (capped at INR 10–25 crore), operational subsidy of 20% for five years, and payroll subsidy of up to INR 10–25 crore annually. Haryana offers capital subsidy of up to 50% in Gurugram and up to 75% outside Gurugram, with overall capital support capped at INR 150 crore, plus employment subsidy of up to INR 1–1.2 lakh per employee per year for up to 10 years.
What are the impacts on businesses and the economy?
The framework reduces regulatory friction, de-risks global supply chains, and supports data sovereignty and AI governance. It encourages regional economic decentralisation, easing pressure on Tier I hubs like Bengaluru, Mumbai and Pune. For businesses, it offers significant cost and operational advantages, but eligibility thresholds, financial caps and compliance requirements vary considerably across states. Companies are advised to evaluate overall operational costs, regional talent availability and long-term infrastructure readiness rather than relying solely on government incentives. The growth of GCCs generates economic ripple effects across commercial real estate, hospitality and facilities management, and promotes GCC-startup incubation programmes.
What should organisations do to prepare?
Conduct a state and city-level assessment before selecting a GCC location, considering talent and infrastructure over the long term. Assess the wider business environment, including employee mobility and infrastructure readiness. Compare the overall cost of establishing and running a GCC across states, not just incentives. Do not assume GCC policies are standardised across states; monitor policy updates from each state government. Establish an internal process to track changes to state policies and operational guidelines. Consider a phased approach when expanding into emerging locations, starting with a smaller team or specialised function. Consider a multi-location GCC model for critical operations to improve business continuity. Monitor broader changes in the GCC ecosystem across India, as increasing competition between states may lead to new incentives and policy changes.
Frequently asked questions
How many GCCs are in India in 2026?
India hosts over 2,100 operational GCCs employing more than 1.9 million professionals.
What is the target for GCCs by 2030?
The central government aims to scale India’s GCC ecosystem to 5,000 by 2030.
Which states have dedicated GCC policies?
Karnataka, Maharashtra, Rajasthan, Gujarat, Kerala, Haryana, Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Telangana and West Bengal.
What is the single-window clearance system?
It is a proposed mechanism to replace 30+ regulatory approvals with a unified approval process, reducing time-to-market from 6–9 months to 6–8 weeks.
Download the full report now
MitKat’s Special Report on the GCC Policy Framework in India carries the complete state-wise incentive tables, eligibility criteria and impact assessment. Download the full report now to brief your investment and expansion teams.
Filed under: India-South AsiaThreat Intelligence Special Reports
