The Karnataka government on Friday unveiled a draft Global Capacity Centers (GCC) strategy, with the goal of generating USD 50 billion in economic output and attracting 500 new GCCs by 2029, creating 3.5 lakh employment. According to authorities, the strategy aims to boost investor trust, foster seamless collaboration with the local innovation ecosystem, and position Karnataka as a worldwide leader in AI research and development.
It was developed through intensive industry research and stakeholder engagements, using inputs from over 500 meetings with experts and industry leaders, they claimed, resulting in a complete framework that sets ambitious goals for development, incentives, and collaboration.
Speaking at the occasion, Priyank Kharge, Minister of Information Technology and Biotechnology stated, "Today, we proudly launch India's first dedicated policy for Global Capability Centers (GCCs), reaffirming Karnataka's position as the top destination for innovation and business transformation." GCCs have progressed from back-office operations to key drivers of global strategic objectives, R&D, and technological solutions." He emphasized that GCCs, which employ over 1.2 million people and provide $22.2 billion to the economy, have been an important source of growth and employment in Karnataka.
"Through this policy, we estimate the GCC industry to develop at a compound annual rate of 12-14 percent over the next decade, with Karnataka capturing over half of the national GCC market share by 2029. We are committed to building an ecosystem that fosters innovation, supports R&D, and nurtures top talent, ensuring that Karnataka remains the most appealing destination for GCCs globally," Kharge stated.
The draft policy is now up for public review, and the government has sought feedback from all stakeholders to help improve and enhance it further.
Ekroop Caur, Secretary to the Government of Karnataka's Department of Electronics, IT, BT, and S&T, presented an overview of the draft GCC policy, detailing its objectives, vision, and goals, emphasizing that it seeks to expand the GCC ecosystem beyond Bengaluru through the implementation of the 'Beyond Bengaluru Package', which aims to attract investments and foster development across the state.
"Our target is to establish 500 new GCCs by 2029, which will create 3.5 lakh new jobs and generate an economic output of $ 50 billion," she said the audience. According to authorities, the policy's main focus is the creation of Global Innovation Districts, which include three new cutting-edge technology parks, one in Bengaluru and two in "Beyond Bengaluru" clusters.
These parks will include cutting-edge infrastructure to encourage cooperation among businesses, tech leaders, and academics. Anchor investors in selected regions would receive extra incentives, while megaprojects will be eligible for customized packages, they stated.
