CII unveils model policy to expand Global Capability Centres beyond metros

New Delhi: The Confederation of Indian Industry (CII) on Sunday released a comprehensive model policy for Global Capability Centres (GCCs), urging state governments to take the lead in attracting the next wave of multinational tech hubs beyond India’s traditional metros.

CII estimates that the GCC sector could add nearly $200 billion to the economy by 2030 if the expansion accelerates across the country.

The model framework calls for state governments to establish dedicated state-level facilitation cells to streamline approvals, design sharper fiscal incentives, and invest in digital infrastructure ranging from high-performance computing clusters to data centres. It also presses states to integrate housing, transport, and civic amenities into GCC planning, ensuring that new hubs offer a quality of life comparable with global cities.

“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 industry body said in a statement.

“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,” it added.

To be sure, nearly 95% of India’s 1,800-plus GCCs—multinational corporations' offshore centres that handle everything from engineering and analytics to artificial intelligence research—are concentrated in the country's six tier-1 cities.

Boosting innovation and jobs

CII’s proposed roadmap, pitched as a “toolkit” for states, seeks to diversify that footprint by enabling tier-2 and tier-3 cities to emerge as future hubs of high-quality jobs and innovation.

“The extraordinary rise of GCCs has been one of the most important developments in our economic journey,” said Chandrajit Banerjee, CII’s director general.

“But to sustain leadership and expand our share of global value chains, states must step up with clear, competitive, and innovation-oriented policies,” he added.

CII’s recommendations go beyond traditional tax incentives. They include viability gap funding for infrastructure, tax holidays for research and development, green building support aligned with global ESG (environmental, social, and governance) norms, and state-specific data protection frameworks. The policy also encourages partnerships between GCCs, start-ups, and research institutions in frontier areas such as quantum computing and energy-efficient digital twins. A digital twin is a digital replica of a physical object, person, system, or process.

The CII emphasized that branding and international outreach will be critical. It has urged states to build city-specific GCC pitches and target underpenetrated markets like Japan, the Nordic region, and the Middle East, rather than relying solely on India’s national brand campaigns.

The move reflects growing recognition that states will determine whether India can evolve from a back-office powerhouse into a global hub of intellectual property and leadership talent.

“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,” Banerjee said.

“CII stands ready to partner with states in operationalizing these recommendations, through joint task forces, investment promotion campaigns, and skill development initiatives,” he added.

He noted that 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.

CII said that its Model State GCC Policy has already attracted interest from several states, with some governments exploring adoption and localization of the recommendations.