"Karnataka Targets 500 New Global Capability Centers by 2029"

The Karnataka government has set an ambitious target to attract 500 new Global Capability Centres (GCCs) by 2029, aiming to create 3.5 lakh jobs and generate $50 billion in economic output. This move will bring the total number of GCCs in the state to over 1,000.

As part of the newly launched GCC Policy 2024-2029, Karnataka, which currently contributes $22.2 billion to India’s GCC market, is poised to solidify its leadership in the sector. India is home to over 1,700 GCCs employing more than 19 lakh people, with Karnataka accounting for over 6 lakh of these jobs.

At the policy launch event, Priyank Kharge, Minister for IT BT and RDPR, highlighted Karnataka’s pioneering role: “We proudly launch India’s first dedicated policy for GCCs, reaffirming Karnataka’s position as a top destination for innovation and business transformation. GCCs have evolved into drivers of global strategic initiatives, contributing $22.2 billion to our economy and fostering growth and employment.”

According to the policy, the GCC sector is expected to grow at a compound annual rate of 12-14% over the next decade, with Karnataka projected to capture nearly 50% of the national GCC market by 2029. The report noted that India’s GCCs have transformed the economic landscape, particularly in engineering, research, and development (ER&D), which account for more than half of the sector's revenue.

The government’s new initiatives include a ₹100 crore Innovation Fund for joint research between academia and GCCs, as well as incentives to promote skills development. These include a 20% reimbursement of skilling expenses for new and existing GCCs and 50% reimbursement for internship stipends from state universities.

Additionally, Karnataka plans to establish Global Innovation Districts, featuring new state-of-the-art technology parks in Bengaluru and beyond, to foster collaboration between start-ups, academia, and tech leaders. Anchor investors in these districts will receive special incentives, and mega projects will be eligible for customised packages. The government will also launch a Centre of Excellence for AI in Bengaluru to boost AI research and innovation across the state.

To streamline operations for GCCs, the government will establish a dedicated support unit within the Department of Electronics, IT, Bt, and S&T, serving as a single point of contact to expedite approvals and provide real estate support.

HBL