What It Is:

The Finance Minister recently emphasized the need to accelerate the establishment of Global Capability Centres (GCCs) across India to strengthen the country’s digital economy. GCCs, also known as Global In-house Centres (GICs), are offshore units set up by multinational corporations to handle key functions such as IT services, R&D, analytics, and customer support. India currently accounts for nearly 50% of all global GCCs and has seen 11% CAGR growth in the sector over the past five years. These centres are crucial for driving innovation, employment, and high-value digital exports.

Launched By / Date / Participants:

Highlighted By: Union Finance Minister of India
Date: July 15, 2025
Participants: Fortune 500 Companies, Industry Chambers, NASSCOM, State Governments, Ministry of Electronics and IT (MeitY)

Objectives:

Attract More Fortune 500 Companies: Make India the top destination for GCC establishment globally.
Strengthen Digital Services Exports: Use GCCs as a platform for IT, AI, fintech, and cloud innovation.
Encourage Tier-II and III Expansion: Decongest metros and create job hubs in emerging cities.
Bridge Skill Gaps: Promote upskilling, hybrid work models, and inclusive digital workforce strategies.

Key Features:

Dominance in Global GCC Market:
- India hosts more than 1,800 GCCs, nearly half of the global total, supporting digital, analytics, and R&D operations.
Economic Impact:
- Direct gross value added (GVA) from GCCs is $68 billion in 2025, projected to reach $150–200 billion by 2030.
Employment Generation:
- The sector employs over 2.16 million people and is expected to create up to 2.8 million jobs by 2030.
Growth Trends:
- GCCs are growing at 11% CAGR, contributing 1.6% to India’s GDP through high-value services.
Challenges and Reforms Needed:
- Key issues include infrastructure gaps, lack of skilled talent in smaller cities, regulatory complexities, and cybersecurity threats. Suggested reforms include agile governance, sustainability alignment, and tech adoption.

About Ministry of Electronics and Information Technology (MeitY)

Full Name: Ministry of Electronics and Information Technology
Headquarters: New Delhi, India
Established: 2016 (after bifurcation from Ministry of Communications & IT)
Minister-in-Charge (June 2025): Shri Ashwini Vaishnaw
Key Mandate: Promote digital India initiatives, IT development, electronic governance, and support innovation-driven sectors including AI, cybersecurity, and digital skilling.

Significance for UPSC/SSC:

For UPSC, this topic is relevant for GS Paper 3 (Economy, IT Infrastructure, Employment) and GS Paper 2 (Governance & Policy Reform). For SSC, this is critical under current economic and digital infrastructure developments with factual and sectoral implications.

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