Karnataka Launches GCC Policy, Targets $50 Billion Economic Output by 2029.

Karnataka government has launched its first-ever Global Capability Centres (GCC) policy, aimed at establishing 500 new GCCs by 2029. The policy, which targets creating 3.5 lakh jobs and generating $50 billion in economic output, positions Karnataka as a leader in global business services and innovation.

Chief Minister Siddaramaiah announced plans to establish three dedicated global innovation districts in Bengaluru, Mysuru, and Belagavi, designed specifically for GCCs. The policy also includes the launch of India’s first Policy Centre for GCCs, as well as the Nipuna Karnataka program, which aims to upskill 100,000 individuals in cutting-edge technologies.

“The establishment of the Centre of Excellence in AI, in partnership with IIT Alumni Center Bangalore, further strengthens Karnataka’s position as a hub for advanced research, development, and startup innovation,” Siddaramaiah said. He added that the state is targeting investments worth $17.5 billion and has already forged partnerships with Switzerland, Finland, and Sharjah.

Minister for IT-BT Priyank Kharge highlighted the creation of a dedicated vertical within the department to support GCCs and emphasized the importance of having a council with leaders from various industries such as IT, biotech, finance, and manufacturing. This will ensure the policy is comprehensive and caters to sector-specific needs.

In a move to promote balanced development, the policy includes a "Beyond Bengaluru" initiative, aimed at creating job opportunities in tier-2 and tier-3 cities like Mysuru, Mangaluru, Shivamogga, and Hubballi-Dharwad. The policy estimates that Bengaluru will generate over 5,000 jobs, while an additional 1,000 will come from other cities.

Karnataka’s GCC market, which currently contributes $22.2 billion of India’s total $64.6 billion GCC market, houses over 875 GCCs, making it the leading hub for global business services in the country. Kharge emphasized the importance of the state's talent, infrastructure, and social ecosystem as key drivers for the growth of GCCs across the region.

The government is also working on developing plug-and-play facilities in tier-2 and tier-3 cities to help companies tap into regional talent pools. These facilities will allow companies to start small and expand as they integrate into local ecosystems.

HBL