Karnataka has announced India’s first dedicated Global Capability Centre (GCC) policy on November 19, aiming to create 350,000 new jobs and generate $50 billion in economic output.
The policy emphasizes workforce empowerment, equity, and flexible work models while promoting sustainable and ethical business practices. With a vision to establish Karnataka as a global innovation hub by 2030, it seeks to develop a diverse and future-ready workforce.
Key initiatives include upskilling programs, mentorship for women, and support for differently-abled employees. The policy also recognizes the importance of remote and hybrid work arrangements, prioritizing employee well-being and work-life balance.
In addition, the policy promotes green initiatives and adherence to Environmental, Social, and Governance (ESG) standards, while advocating for digital transformation to ensure sustainability and inclusivity.
A notable aspect of the policy is the ‘Beyond Bengaluru’ initiative, which targets emerging cities such as Hubballi-Dharwad, Mysuru, Mangaluru, Kalaburagi, Tumakuru, and Shivamogga. This initiative aims to create technology and innovation hubs across these regions to facilitate balanced regional development. The government plans to offer substantial support to GCCs setting up in these areas, including rental reimbursements, tax incentives, and utility subsidies.
For instance, new GCCs in these regions will receive reimbursements for property taxes and electricity charges, as well as financial assistance for employee recruitment and training programs.
To spark innovation, the state will introduce three Global Innovation Districts—one in Bengaluru and two in the Beyond Bengaluru areas. These districts will feature advanced infrastructure, streamlined regulatory processes, and a collaborative ecosystem connecting startups, academic institutions, and technology leaders. An Innovation Fund worth ₹100 crore is also set to be launched to promote joint research projects between GCCs and academic institutions.
Additionally, the policy aims to position Karnataka as a global leader in artificial intelligence (AI), with plans to establish a Centre of Excellence for AI in Bengaluru. This center will operate on a hub-and-spoke model linked to various academic institutions across the state, focusing on building an AI research and development ecosystem and fostering ethical AI practices.
The state government has set ambitious targets, planning to attract 500 new GCCs by 2029, bringing the total to 1,000 centers in Karnataka. This growth is anticipated to create 350,000 new jobs and contribute $50 billion to the state’s economy. Currently, Karnataka hosts about 35% of India’s GCC workforce, aiming to strengthen its leadership in this sector.
The policy aims to promote decentralized development by encouraging GCCs to invest in smaller-scale operations, referred to as Nano GCCs, in areas beyond Bengaluru. These facilities, which will employ between 5 and 50 people, will benefit from a variety of incentives while avoiding strict employment or investment requirements, allowing companies the flexibility to operate and adapt swiftly.
