BENGALURU: The Karnataka government on Friday launched the draft Global Capability Centres policy (GCC 2024-2029). Being the first state in the country to do so, the government aims to add 500 more GCCs in Karnataka by 2029, which will create 3.5 lakh new jobs and generate an economic output of $50billion. Currently, the state has over 500 GCCs which comprise 30 per cent of the country’s GCCs and 35 per cent of the workforce.
To support the state’s pursuit of 1,000 GCCs, the draft policy includes several incentives, collaboration, research and development (R&D), talent development and a robust ecosystem for industries. The policy mentioned that the GCC sector is set to grow at a compound annual rate of 12-14% over the next decade, and foresees Karnataka holding nearly 50% of the national GCC market share by 2029.
Speaking at the launch of the draft policy, Priyank Kharge, Minister for IT-BT and Rural Development and Panchayat Raj (RDPR), said, “GCCs have evolved from back-office operations to becoming critical drivers of global strategic initiatives, R&D, and technology solutions. With a workforce of over 1.2 million and contributing $22.2 billion to the economy, GCCs have been a vital source of growth and employment for Karnataka. Through this policy, we are committed to creating an ecosystem that fosters innovation, supports R&D and nurtures top talent, ensuring Karnataka remains the most attractive destination for GCCs globally.”
One of the main aspects of the policy is to extend investments beyond IT hub Bengaluru. Ekroop Caur, secretary, Department of Electronics, IT,-BT, and Science and Technology, in her comprehensive address, spoke about the ‘Beyond Bengaluru Package’ under which the government will provide recruitment assistance, rental support, co-working space creation, property tax reimbursement and the formation of Cluster Anchor Groups. Nano GCCs will be promoted in clusters such as Hubballi-Dharwad-Belagavi, Mysuru and Kalaburagi, and incentives will promote flexible operations and staffing ranging from 5 to 50 employees.
Global Innovation Districts, with three new state-of-the-art technology parks — one in Bengaluru and two in ‘Beyond Bengaluru’ clusters -- will be established. These parks will feature cutting-edge infrastructure to foster collaboration between startups, tech leaders and academia. Anchor investors in these districts will receive special incentives, with mega projects eligible for customised packages.
The draft policy is available in public domain for comments and inputs from stakeholders and feedback from citizens.
KEY LAUNCHES
Centre of Excellence for AI in Bengaluru, to support AI research across academic institutions
AI Skilling Council with industry participation, government will fund curriculum development
Single Point of Contact (SPOC) for GCCs established within the Department of Electronics, IT- BT, S&T
Talent Pillar: Policy aims to facilitate internships for up to 1 lakh individuals in leading GCCs
Rs 100 crore Innovation Fund to support joint research projects between academia and GCCs