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With 80 per cent of global firms yet to establish GCCs in India, the initiative to expand these centres into tier II cities unlocks the potential to transform the country’s attractiveness as the global GCC capital while creating millions of skilled jobs, industry players noted.
On Saturday, as part of the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced the formulation of a national framework to guide states in promoting Global Capability Centres (GCCs) in emerging tier II cities. This will suggest measures to enhance the availability of talent and infrastructure, building-byelaw reforms, and mechanisms for collaboration with industry.
According to Lalit Ahuja, the CEO of ANSR, the proposed framework for expanding GCCs into tier-II cities marks a pivot in India’s tech evolution and the recognition of their potential as a force multiplier for the country’s economic growth.
“This recognition marks a pivotal moment for our sector, poised to break through the sound barrier of growth and emerge as a vital component of India’s IT landscape. The proposed national framework will be instrumental in unlocking the potential of tier II cities, driving the next wave of growth, and enabling us to build a robust talent supply engine that fuels innovation and excellence.”
The announcement of the National framework to promote will transform India’s economic landscape, creating a balanced economic development across States, echoed Neeti Sharma, CEO of TeamLease Digital. She explained that as GCCs are projected to generate millions of jobs, this framework will facilitate the growth of formal employment opportunities for the youth, capitalize on talent availability in India’s Tier II and III cities, upgrade infrastructure and make these cities more attractive for global businesses.
India has led the global GCC expansion strategy over the past five years, with over 400 new GCCs and about 1,100 new units established. The number of GCCs in India has risen from around 1,430 in FY19 to over 1,700 in FY24, employing nearly 1.9 million professionals.
By 2026, the sector is expected to surpass a workforce of 2.2 million. As part of its expansion strategy, it was already focusing on tier II and tier III cities to tap into a large pool of unexplored talent. Data indicates that the demand for GCCs in these cities is projected to rise by 25-30 per cent.
Jaspreet Singh, Partner and GCC Industry Leader, Grant Thornton Bharat, shared, “By unlocking access to a wider talent pool, including professionals who prefer to stay in their hometowns, this initiative will enhance workforce stability and retention. Improved infrastructure will further enable seamless operations, making Tier-II cities attractive destinations for high-value global work. As GCCs evolve into strategic hubs for innovation and technology, this expansion will drive inclusive growth, reduce regional disparities, and position India as a global leader in digital and business services.”
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