Published Wed, 11 Feb 2026 | Updated Wed, 11 Feb 2026 Startup

Why Global MNCs are choosing India for Global Capability Centres (GCCs)

In the last decade, Global Capability Centres (GCCs) have moved from being cost-effective back offices to strategic centers for innovations in technologies, analytics, finance, R&D, and enterprise transformation for multinational organizations.

Today, India is located at the epicenter of such a change.

There are already over 1,700 GCCs operating in India. Moreover, there are more in the making. India has emerged as the new destination of choice for global enterprises wanting to set up future-ready infrastructure.

Understanding GCCs: More Than Just Offshore Centres

Global Capability Centre is an offshore or near-shore operating unit established by an MNC to carry out critical business operations including:

• Technology & digital engineering
• Finance, accounting & controllership
• Data Analytics & AI
• R&D and product development
• Legal, compliance & risk management
• Shared services HR

Unlike other outsourcing processes, these GCCs are captive operating units fully under the control of the parent organization to ensure data security and long-term creation of shareholder value.

India’s Game Changer: State-Led GCC Incentive Policies

What differentiates India most today is the high degree of competition at the state level to attract global GCC investments. The majority of the major states have announced their policy for GCC investors, providing incentives and exemptions.

Here is a snapshot of the ways in which the Indian states are wooing the foreign MNCs:

Key State GCC Policies & Incentives

1. Karnataka Global Capability Center (GCC) Policy- 2024-2029

Karnataka’s GCC Policy 2024–2029 focuses on strengthening Bengaluru while promoting Beyond Bengaluru locations

Key Incentives Include:

1. Fund for setting up of 'GCC Immersive Hubs’ to demonstrate innovation and R&D being undertaken in the State, on Public-Private Partnership (PPP) mode.
2. For Real estate entities, Government will Reimbursement for vacant seat costs in co-working spaces for three years based on the number of vacant seats.
3. For any new GCCs in the Beyond Bengaluru area with minimum 100 employees:
   • Reimbursement of EPF contributions for new employments upto INR 3000 per employee per month, for 2 years.
   • Reimbursement of 25% of internet expenses upto 12 Lakh for three years
   • 100% reimbursement of electricity duty and option to switch from Commercial to Industrial power tariffs
4. For any new or existing GCCs in the Beyond Bengaluru area with minimum 100 employees:
   • Reimbursement of recruitment costs based on the number of new hires, capped at 50% of the total expenses, up to a maximum of INR 7 crore.
   • Reimbursement of rent expenses based on the number of employees, capped at 50% upto INR 2 crore.
5. For any new or existing GCCs in the Beyond Bengaluru area:
   • Funding up to 75% of capital expenditure upto INR 3 crore in Beyond Bengaluru clusters.
   • Government will form Cluster Anchor Groups and support the matchmaking for GCCs planning to setup each of the six Beyond Bengaluru clusters
   • Reimbursement of 30% property tax for 3 years
   • 50% reimbursement of patent filing fees, max INR 3 lakh.
   • 80% reimbursement of certification fees up to INR 8 lakh.
6. For any new or existing GCCs in the state:
   • 100% reimbursement of the cost incurred by startups, for using GCC facilities, capped at ₹40 lakh per GCC.
   • Grants up to 40% or INR 50 crore for developing R&D facilities.
   • A dedicated platform/ a operational helpdesk where GCCs can share their needs/ requirement/ pain points /ask questions, etc, will be setup.
   • 50% reimbursement of domestic patent filing fees, upto INR 2 lakh.
   • Funding up to 40% of capital expenditure upto INR 5 crore in Bengaluru Urban District.

2. Uttar Pradesh – High-Incentive, High-Growth Destination

UP’s GCC Policy is among the most incentive-heavy in India, aimed at creating large-scale employment.

Key Incentives Include:

1. Front end land subsidy 30-50% subsidy on land from State Industrial Development Authorities or any other State Govt Agency
2. 100% exemption/ reimbursement on land/office space purchase with bank guarantee or post-commencement reimbursement.
3. Capital Subsidy @25% of Eligible Capital Investment (ECI), up to Rs 10 Cr for Level-1 GCC and Rs 25 Cr for Advanced GCC, over seven years.
4. Interest Subsidy: 5% subsidy on term loans for up to Rs 1 Cr per year for five years.
5. Operational Subsidy @20% subsidy on operating expenses including on Lease rentals, Bandwidth expenses, Power Charges & Data Centre/ Cloud Service Costs, up to Rs 40 Cr per annum to Level-1 GCCs and upto maximum of Rs 80 Cr per annum to Advanced GCCs, for five years.
6. Startup Ideation Support: Reimbursement of 50% of costs incurred in running proof of concepts upto maximum of Rs. 50 Lakh per annum for 5 years.
7. Payroll subsidy shall be paid in form of reimbursement for a period of 03 years upto max ₹10 crore per year for a Level-1 unit and upto max of ₹20 crore to Advanced GCC towards on-roll employees having continuous enrolment for atleast 1year.
8. Subsidy for IPR: Reimbursement of full cost incurred for filing patents upto maximum of Rs 5 lakh for domestic patents and upto maximum of Rs 10 lakh for international patents.
9. R&D and Innovation Incentives: Grants of maximum Rs 10 Cr. for setting up Centres of Excellence, support for startup ideation, and academic partnerships, as per IIEPP-2022.
10. EPF Reimbursement: 100% reimbursement for EPF contributions for women, SC/ST, transgender, and Divyangjan employees, up to Rs 1 Cr annually for three years.

 

3. Odisha – Emerging GCC Destination with Strong Incentives

Odisha’s newly announced GCC Policy 2025 focuses on attracting first-time GCC investors.

Key Incentives Include:

1. Concessional land rates
2. Lease rental support
3. Power tariff incentives
4. Interest subsidies
5. SGST reimbursement
6. PF/ESI contributions
7. Capital and infrastructure assistance including relocation support for domestic and international firms

 

4. Maharashtra – Financial & Commercial Powerhouse

Maharashtra’s GCC Policy 2025 aims to position Mumbai–Pune as a global enterprise services hub.

Key Incentives Include:

The GCC units under the Maharashtra Global Capability Centre Policy-2025 will be provided with fiscal and non-fiscal incentives as mentioned in the policy

Fiscal Incentives

• Capital Subsidy or Rental Assistance, Payroll Subsidy and Interest Subsidy
•  Incentives on Incremental Investment
• Patent filing assistance and green certification support
• Power tariff subsidy and electricity duty exemption
• Research and Development Grants
• Stamp duty and property tax exemptions

Non-Fiscal Incentives

• Industry Status to GCC
• Additional Floor Space Index (FSI) and Mixed-Use Permission
• Open Access, Right of Way, Zoning Relaxation
• Reserved MIDC Land and Priority Allotment, ensuring quick access to prime business locations.
• Ease of Doing Business (EoDB) Reforms, including streamlined approvals and single-window clearances.
• Digital Data Repository
• Power Supply, Uninterrupted Water Supply, 24 X 7 Operations and Flexible Employment Conditions.

 

5. Gujarat – Business-Friendly & Manufacturing-Linked GCCs

Gujarat’s GCC Policy 2025–2030 focuses on ease of doing business and industrial integration.

Key Incentives Include:

1. Interest Subsidy on term loans
2. GCC can claim reimbursement on the employer’s statutory contribution under Employees’ Provident Fund (EPF) made by them for their employees working in the offices situated within Gujarat for a period of five years.
3. GCC can claim the entire amount of electricity duty paid by them to the Government of Gujarat for a period of five years from the date of start of commercial operations or in-principle approval, whichever is later.
4. Skill development reimbursements

 

6. Madhyapradesh Global Capacity Center Policy (GCC) 

Madhya Pradesh has a strong presence in IT/ITeS, Automobile, Geographic Information System (GIS), Pharmaceutical, and Textile Industries. For these industries to grow faster, the state intends to attract sector specific GCCs to support specific industries. With this policy, the state intends to attract more than 50 GCCs with a target of employing over 37,000 direct employees.  

Key Incentives Include:

Fiscal Incentives

• Incentives available to IT/ITeS units in the Madhya Pradesh IT, ITeS & ESDM Investment Promotion Policy 2023 would be made available to GCCs establishing operations in the state.
• CAPEX Subsidy and Payroll Subsidy
• Dedicated support to academia will be provided, covering 100% of costs up to ₹50 lakh per year per institute, specifically for Research and Development in the GCC shared spaces domain.
• Skilling reimbursement will be provided to eligible GCCs at the rate of ₹50,000 per employee for course fee or 50% of the costs for conducting training programs.
• Eligible GCCs hosting/cohosting events in the state of Madhya Pradesh will be provided ’Hosting/Co-Hosting Events Assistance’ of one-third of the cost up to ₹ 25 lakhs for hosting/cohosting events/conferences (up to 2 per annum) in Madhya Pradesh.
• 100% assistance for filing patents up to ₹ 20 lakhs for domestic & ₹ 30 lakhs for international patents in the policy once per annum.

Non-Fiscal Incentives

• Exemptions under Shops and Establishments Act
• Women workers are allowed to work in any factory or manufacturing shop floor during night shift subject to the conditions as specified under the Factories Act 1948 and as per notifications issued.
• Eligible GCC units are considered independent employers in the schedule of Minimum Wages Act 1948 so that the workers are classified separately, and their wages can be fixed as per their efficiency and skill level.
• Exemptions for Eligible GCC units from inspections under Madhya Pradesh Udyog Ki Sthapana Evam Parichalan ka Saralikaran Adhiniyam- 2023 from obtaining specified approvals and inspections for establishing and operationalising units in MP for 3 years.

 

7. Rajasthan Global Capacity Center (GCC) Policy

Key Incentives Include:

1. Capital Subsidy: The Government will provide assistance in setting up GCCs (including CoEs) by way of Capital Subsidy equivalent to 30% of the project cost (excluding the cost of land and buildings) for GCCs set up by private enterprises, subject to a maximum of INR 10 crores for a period of 10 years.
2. Land Cost Incentive: Reimbursement of 50% of cost of purchase of land or lease of floor area up to a maximum ofINR1 crore for setting up of GCCs.
3. Stamp Duty Exemption: Exemption from payment of 75% stamp duty and reimbursement of 25% stamp duty.
4. Electricity Duty Exemption:100% exemption of Electricity Duty for 7 years
5. Green Incentive: Global Capability Center (GCC) that implement green initiatives or develop innovation aimed at enhancing sustainability will be eligible for a 25% subsidy on the cost of establishing environment projects, with a maximum limit of INR 1 CRORE.
6. Training Incentive-R&D training incentive of 50% of the cost of training up to INR 10,000 per person per month can be availed for 12 months. Training must be from an accredited institution, relevant to the operations & management of such enterprise.
7. IP Creation Incentive: The State shall pay 50% of the cost incurred for patent, copyright, trademark, and registration of geographical indicators up to INR 5 crores for standalone GCCs dedicated to R&D.

 

Central Government Advantages That Strengthen GCC Economics

Besides these state-specific incentives, India has the following national-level benefits:

• Special Economic Zone (SEZ) benefits
• Software Technology Park schemes
• Liberal FDI regime with 100% automatic route in most services sectors
• Stable regulatory and corporate law framework

Put these together and they are the ingredients for low-risk, high-return, long-term GCC investments.

Final Thoughts

For multinational corporations evaluating global expansion, India offers a rare combination of scale, skill, cost efficiency, and policy support.

Whether you are setting up your first GCC or expanding an existing global footprint, India is not just an option — it is the strategic choice.

Ready to Set Up Your GCC in India?

Our experts help foreign MNCs evaluate locations, structure entities, secure incentives, and go live—end to end.

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Disclaimer:

All incentives and exemptions referred to above are subject to eligibility conditions and approvals as prescribed under the applicable State Government policies. Global Capability Centres (GCCs) must satisfy the prescribed criteria and comply with all relevant rules, guidelines, and regulatory requirements to avail such benefits.
The above information has been compiled based on general information available in the public domain and is provided for informational purposes only. It should not be construed as professional, legal, or tax advice, and users are advised to seek appropriate professional guidance before taking any action.

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