The Karnataka Government launched a draft Global Capacity Centres (GCC) policy earlier this week, aiming to generate an economic output of USD 50 billion and attract 500 new GCCs by 2029, which would create approximately 350,000 jobs. With this initiative, the government has set a target to double the number of global capability centres in the State to 1,000 by 2029.

A key feature of the policy, according to officials, is the establishment of Global Innovation Districts, which will include three new state-of-the-art technology parks-one in Bengaluru and two in clusters located "Beyond Bengaluru."

These parks are designed to offer cutting-edge infrastructure that promotes collaboration among startups, technology leaders, and academic institutions. It was mentioned that anchor investors in these districts will receive special incentives, while mega projects will be eligible for customised packages.

To support AI research, the government will establish a Centre of Excellence (CoE) for AI in Bengaluru, which will operate through a hub-and-spoke model involving various academic institutions. An AI Skilling Council, featuring industry participation, will also be launched, with government funding allocated for curriculum development, as stated in an official announcement.

Officials indicated that the policy places significant emphasis on expanding the GCC ecosystem beyond Bengaluru. It introduces a 'Beyond Bengaluru Package', which offers recruitment assistance, rental support, the creation of co-working spaces, property tax reimbursement, and the formation of Cluster Anchor Groups.

Speaking at the event, Information Technology and Biotechnology Minister Priyank Kharge expressed pride in launching India's first dedicated policy for Global Capability Centres (GCCs), reaffirming Karnataka's status as the leading destination for innovation and business transformation. He remarked that GCCs have evolved from back-office operations to become crucial drivers of global strategic initiatives, research and development, and technology solutions. He emphasised that with a workforce exceeding 1.2 million and contributing USD 22.2 billion to the economy, GCCs have served as a vital source of growth and employment for Karnataka.

Kharge stated that through this policy, the government expects the GCC sector to grow at a compound annual rate of 12-14 per cent over the next decade and anticipates that Karnataka will hold nearly 50 per cent of the National GCC market share by 2029. He emphasised the commitment to creating an ecosystem that fosters innovation, supports research and development, and nurtures top talent, ensuring Karnataka remains the most attractive destination for GCCs globally.

According to the draft policy, a dedicated GCC support unit will be established within the Department of Electronics, IT, BT, and S&T to serve as a Single Point of Contact (SPOC) for GCCs. This unit will streamline coordination with government departments, expedite approvals, provide real estate scouting support, and facilitate integration within the local ecosystem. Additionally, a Global Outreach Initiative with a substantial marketing budget will promote Karnataka's GCC ecosystem on the international stage.

A key element of the policy is the creation of the GCC Acceleration and Investment Network, which will be a strategic body composed of global leaders and industry experts. This network will guide Karnataka's GCC initiatives, attract investments, promote innovation, and drive talent development.

Crafted through extensive industry research and consultations with stakeholders, the policy draws insights from over 500 discussions with experts and industry leaders. Officials mentioned that the result is a comprehensive framework that sets ambitious goals for growth, incentives, and collaboration. The draft policy is currently open for public comments, and the government has invited input from all stakeholders to further refine and strengthen it.

Ekroop Caur, Secretary to the Government of Karnataka's Department of Electronics, IT, BT, and S&T, provided an overview of the draft GCC policy, detailing its objectives, vision, and goals. She emphasised that the policy aims to expand the GCC ecosystem beyond Bengaluru through the introduction of the 'Beyond Bengaluru Package', which is designed to attract investments and foster development across the state. She indicated that the target is to establish 500 new GCCs by 2029, which would create approximately 350,000 new jobs and generate an economic output of USD 50 billion.

Karnataka's GCC Policy 2024-2029 serves as a testament to the state's proactive approach to enhancing global competitiveness, driving innovation, and positioning itself as a premier destination for GCCs worldwide, according to the policy statement.

To further strengthen the talent ecosystem, the draft policy will incentivise GCCs to develop local talent through skilling initiatives, including both technical and soft skill enhancement for graduates and diploma holders. Support will be provided for the development of future-oriented curricula, along with funding for training students and master faculties.

Reimbursement will be available to GCCs for internship stipends, aiming to provide internships for a total of 100,000 students during the policy period. The policy will also support joint research projects between academic institutions and GCCs by funding project costs to encourage the industrial application of academic research. Additionally, recruitment assistance will be offered to GCCs that are setting up or expanding operations beyond Bengaluru.

Karnataka's GCC Policy 2024-2029 represents a strategic initiative to foster growth, innovation, and talent development, solidifying the state's position as a global business hub.