The Confederation of Indian Industry (CII) announced the release of its Model State Policy on Global Capability Centres (GCCs), a comprehensive blueprint designed to guide states across India in attracting, enabling, and scaling the next generation of global enterprise hubs. This policy framework comes at a crucial moment when India is transitioning from being a global delivery destination to an innovation and leadership capital for multinational corporations. The new model policy provides states with a pragmatic, forward-looking, and investment-friendly roadmap that complements national efforts but also builds distinct advantages at the local level.
Commenting on the policy, Mr. Chandrajit Banerjee, Director General, CII, said, “The extraordinary rise of GCCs in India has been one of the most important developments in our economic journey over the past two decades. But to sustain leadership and expand our share of global value chains, states must step up with clear, competitive, and innovation-oriented policies. The Model State GCC Policy released by CII today offers a ready framework to guide this effort – helping states design their own strategies, accelerate GCC growth beyond the metros, and generate large-scale high-quality jobs. This is about ensuring that India’s knowledge capital is inclusive, future-ready, and globally benchmarked”
Promoting the engines of growth
The policy assumes significance because nearly 95% of India’s 1,800-plus GCCs are currently concentrated in just six Tier-1 cities. While these metros have been the engines of growth, future expansion will depend on the ability of states to unlock potential in Tier-2 and Tier-3 cities. The CII model policy focuses on enabling these emerging hubs, diversifying the geographic footprint of GCCs, and building state-level ecosystems that are attractive to global enterprises.
The release of this policy is intended to provide states with actionable measures across infrastructure, incentives, regulatory frameworks, and talent development, with the ultimate objective of creating seamless, resilient, and globally competitive ecosystems. Importantly, the model policy has been shaped by best practices from successful state-level initiatives in India, combined with global benchmarking of leading GCC destinations.
In launching the policy, CII emphasised that while the national framework provides the overarching direction and vision, it is the states that will ultimately determine how quickly and effectively India can scale up GCCs in terms of size, scope, and sophistication. As Mr. Banerjee noted, “States today are the frontline drivers of India’s competitiveness. With this model policy, we are equipping them with a toolkit to attract global corporations, nurture local ecosystems, and ensure balanced and sustainable growth of GCCs across the country.”
Model State GCC Policy contains several key recommendations
First, the policy calls for the establishment of State-level Facilitation Cells dedicated to GCCs, serving as a single point of contact for investors and enterprises. These cells would streamline approvals for land, utilities, and infrastructure, while also acting as investor support desks to resolve issues in real time. Such dedicated structures will not only reduce transaction costs but also enhance the confidence of global firms in engaging with state authorities.
Second, the policy recommends targeted fiscal and regulatory incentives for GCCs that go beyond generic IT/ITES schemes. These include viability gap funding for integrated infrastructure projects such as smart mobility and transit corridors, time-bound tax holidays, and exemptions on customs duties for imported R&D equipment and technology tools. The model proposes that in the initial phase, states may identify and develop 8–10 priority hubs, chosen through transparent challenge-based selection processes, ensuring competitive site allocation and efficient clustering of facilities.
Third, the policy highlights the need for dedicated digital infrastructure investment at the state level, including compute subsidies for AI/ML model training, government-backed service-level agreements to guarantee uninterrupted connectivity, and incentives for setting up edge data centres in Tier-2 and Tier-3 locations. By embedding digital backbone elements into local infrastructure policy, states can ensure that GCCs in emerging cities operate at par with global hubs.
Fourth, the policy encourages states to launch joint accelerator and venture-building programmes that connect GCCs with local start-ups and research institutions. This approach will allow multinational enterprises to co-create solutions in frontier technologies such as quantum computing, ESG-aligned applications like digital twins for energy efficiency, and enterprise SaaS with export potential. Grants and proof-of-concept funding mechanisms should be established to fast-track these collaborations.
Fifth, the model proposes that green infrastructure should become a standard in GCC development at the state level. Capex support should be offered for facilities certified under internationally recognised standards such as LEED or GRIHA, ensuring low-carbon, resource-efficient operations. This would not only align with India’s sustainability goals but also make state ecosystems more attractive to ESG-conscious global investors.
Sixth, the policy recommends that states should develop locational capability by integrating housing, smart mobility, and civic infrastructure into their GCC planning frameworks. This means convergence of multiple state schemes whether in affordable housing, multi-modal transport, or smart city projects—to create holistic “Champion Cities” where GCCs can thrive alongside strong quality of life indices for professionals and their families.
Seventh, the model advocates the creation of state-specific data security and IP facilitation frameworks aligned with the Digital Personal Data Protection Act but tailored to local conditions. Sandbox environments, accelerated intellectual property approvals, and sector-specific data trust models are suggested to give states an edge in hosting data-intensive GCCs such as those working in AI, fintech, or healthcare analytics.
Eighth, the policy calls for incentive support for high-performance computing clusters and federated compute pools under public-private partnership models. States should co-invest in these digital assets alongside industry, ensuring that their cities are not only competitive today but also future-proofed for tomorrow’s technology demands.
Ninth, the policy stresses the importance of branding and outreach by states in partnership with CII. This includes developing city-specific GCC value propositions, participating in international roadshows, and building sector-focused campaigns targeting underpenetrated markets such as Japan, the Nordics, and the Middle East. The aim is to ensure that state-level ecosystems are visible and attractive to global decision-makers, not just reliant on national branding campaigns.
Tenth, the model recommends the institutionalisation of continuous monitoring and feedback mechanisms so that states can adapt to the fast-changing needs of global enterprises. A multi-tier architecture involving state nodal departments, industry partners, and innovation agencies can ensure that regulatory issues are addressed promptly, incentive schemes are evaluated in real time, and course corrections are swiftly implemented.
Creating innovation clusters
CII underlined that these recommendations are designed to empower states to compete globally while collaborating nationally. By implementing such measures, states can ensure not only the expansion of GCCs within their territories but also the creation of innovation clusters that rival the best in the world.
Mr. Banerjee stated, “The model policy makes it clear that the next wave of GCC growth must be geographically inclusive. States that act early and decisively will be the ones to reap the benefits of high-quality employment, deepened innovation ecosystems, and stronger integration into global value chains. CII stands ready to partner with states in operationalising these recommendations, through joint task forces, investment promotion campaigns, and skill development initiatives.”
He further added, “The GCC sector has the potential to transform India’s economic trajectory, not only through jobs and exports but by positioning India as a global hub of intellectual property, digital innovation, and leadership talent. With a national framework providing direction and the model state policy equipping states with actionable levers, India can look forward to scaling its GCC sector to contribute nearly $200 billion in direct value to the economy by 2030.”
CII’s Model State GCC Policy has already attracted interest from several states, with some governments exploring adoption and localisation of the recommendations. The Confederation announced that it will organise regional workshops and state-level consultations in the coming months to facilitate dialogue between policymakers, industry leaders, and global enterprises on tailoring the model to state-specific contexts.
The press release concluded with CII reaffirming its commitment to support states in their policy innovation journeys. As Mr. Banerjee observed, “The time has come for India to move decisively from a few metropolitan GCC hubs to a pan-India network of knowledge centres. This will not only strengthen India’s position as the preferred global destination for GCCs but also ensure that the benefits of this sector touch every region of our country.”
ALSO READ: Assam CM Himanta Biswa Sarma pays floral tribute to Zubeen Garg
Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
