Karnataka’s Global Capability Centers (GCC) Policy: A New Era of Economic Growth
The Karnataka government has recently introduced a groundbreaking draft policy for Global Capability Centers (GCCs), presented on 27 September. This comprehensive strategy aims to significantly enhance the state’s economic landscape by targeting a remarkable output of US$50 billion by 2029. Alongside this ambitious goal, the policy also envisions the creation of 350,000 new jobs and the establishment of 500 new GCCs, highlighting Karnataka’s commitment to becoming a global hub for innovation and technology.
Understanding Global Capability Centers (GCCs)
Global Capability Centers are specialized units of multinational corporations situated outside their home countries. These centers perform vital functions such as IT service management, financial operations, human resources, and advanced analytics, thereby providing essential support to their parent companies while simultaneously contributing to the local economy.
Boosting Investor Confidence and Innovation
The proposed policy is not just about job creation; it’s designed to enhance investor confidence and foster seamless collaboration with the local innovation ecosystem. Karnataka aims to position itself as a leader in Artificial Intelligence (AI) research and development, amplifying its status as a hub for technological advancements.
Government’s Vision and Objectives
During the unveiling of the policy, Priyank Kharge, the stateโs Minister of Information Technology and Biotechnology, emphasized the significance of establishing a unique policy for GCCs. He noted, โToday marks the launch of India’s first dedicated policy for Global Competence Centres, reaffirming Karnataka’s pivotal role in the GCC landscape. These centers have evolved from supporting back-office operations to becoming central drivers of global strategic initiatives, technology solutions, and innovative research.โ
The Economic Impact of GCCs in Karnataka
Globally, GCCs currently employ over 1.2 million individuals in Karnataka, contributing about US$22.2 billion to the state’s economy. The government is eager to hear feedback and suggestions from stakeholders regarding the draft policy, ensuring it meets the needs of the industry.
Creating Employment Opportunities and Supporting Innovation
Ekrup Kaur, Secretary of the Department of Electronics, IT, and Biotechnology, highlighted that the policy sets a target of establishing 500 new GCCs by 2029. This initiative is projected to generate 350,000 new jobs and bolster economic output to US$50 billion.
In addition to job creation, the policy promises to offer internship opportunities valued up to Rs 1 lakh in leading GCCs. Furthermore, a financial allocation of Rs 100 crore has been earmarked for an Innovation Fund aimed at supporting collaborative research projects between academic institutions and GCCs.
Expanding Beyond Bengaluru
Recognizing the potential of cities beyond Bengaluru, the policy targets key cities like Mangaluru, Mysuru, Hubli-Dharwad, Belagavi, Kalaburagi, Tumkuru, and Shivamogga for GCC expansion. These regions already possess a robust foundation in IT and technology, making them prime candidates for this initiative. An official statement underlined the benefits that these cities will reap from this strategic move.
Streamlined Support and Integration
The policy also proposes the establishment of a dedicated GCC support unit focused on streamlining approval processes, facilitating real estate scouting, and promoting integration with local ecosystems. A Single Point of Contact (SPOC) will be designated to ensure smooth communication and support for new GCCs.
Conclusion
Karnataka’s forward-thinking policy on Global Capability Centers represents a significant stride toward industrial growth and technological advancement. With a clear vision and strategic initiatives, the state is well on its way to becoming a key player in the global economy, driving innovation, creating jobs, and enhancing the overall quality of life for its residents.
