Centre committed to work with states in building GCCs: Sitharaman

New Delhi: The central government is committed to partnering with states in creating the right ecosystem for multinational corporations to set up their captive units in India, known as global capability centres (GCCs), and to enable smaller cities to compete with metros in this regard, finance minister Nirmala Sitharaman said on Wednesday.

Speaking at the Confederation of Indian Industry (CII)'s GCC business summit in Andhra Pradesh, Sitharaman said that in order to maximize India’s advantage for these units that contribute to technology development tapping into India’s skilled workforce, it is critical to align national and state-level policies.

The policies also need to be adapted so that each state builds on its unique comparative advantage, the minister said.

GCCs are captive offshore units set up by multilateral corporations in countries such as India to handle key business functions, including technology development, for their global operations.

On India’s potential in this sector, Sitharaman said GCCs have acquired an Indian flavour and the sector’s growth has been consistent with expectations.

The minister also highlighted the need for building infrastructure ecosystems that allow smaller cities to attract global talent and corporate reinvestment and facilitate high-value innovation and service delivery. These steps will help make these cities credible alternatives to the metros, she said.

Sitharaman explained that the central government has been steadily increasing its capital expenditure for building infrastructure and reducing the bottlenecks.

Infra spending hits peak

The government's capital investment has increased from 1.7% of GDP in FY14 to 3.2% in FY25, with effective capital expenditure at 4.1% of GDP. Effective capex includes the Centre’s assistance to states to make capital expenditure.

“Over the last 11 years, 88 airports have been operationalized, 31,000 km of new rail tracks laid, metro networks expanded over fourfold, port capacity doubled and the national highway network has extended by 60%,” the minister said.

The central government has sanctioned over ₹3.6 trillion as 50-year interest-free loans to states, and incentivized increased capex by the states, the minister said adding that 22 states had recorded more than 10% growth in capital expenditure from their own resources.

Andhra Pradesh chief minister N. Chandrababu Naidu, who was present on the occasion, spoke about making Andhra Pradesh a global hub for knowledge-driven growth.

Naidu has set a target to make Andhra Pradesh a $2.4 trillion economy by 2047, supported by initiatives in infrastructure, technology, and sustainability.

The chief minister said every GCC entering the state would be encouraged with full facilitation for land, power, skill development, and digital infrastructure. “My promise is that Andhra Pradesh will not only give you the best policies, but also perfect execution.”

From ‘one family, one IT professional’, we are now moving towards ‘one family, one entrepreneur', Naidu said on his government’s motto.

A model state GCC framework brought out by CII provides a clear roadmap for states to scale up their efforts, attract investment and build resilient ecosystems, Sitharaman said.

“By working together—the Centre, states, industry associations like CII and global companies—we can ensure that India’s GCC growth is both broad -based and future-ready,” Sitharaman said, adding that it will consolidate India’s leadership in the sector and create new opportunities for innovation, job creation and inclusive regional development.