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Finance Minister Smt Nirmala Sitharaman stated that Global Capability Centres (GCCs) in India could contribute up to USD 200 billion to the country's economy by 2030 and significantly increase job creation. She highlighted the rapid pace of GCC establishment, with one new centre being launched weekly in 2024. Currently, around 50% of Fortune 500 companies operate GCCs in India, employing 2.16 million professionals. This workforce is projected to expand to 2.8 million by the end of the decade, reflecting the sector's steady 11% CAGR over the past five years.
Finance Minister Smt Nirmala Sitharaman remarked that India's Global Capability Centres (GCCs) hold the potential to contribute as much as USD 200 billion to the national economy by 2030. She made these comments during the CII-GCC Business Summit held in New Delhi, pointing to the sector's promising trajectory and its growing strategic significance within the global corporate ecosystem. Advertisement
She noted that, on average, one new GCC has been established each week in 2024, underlining the sector's remarkable growth momentum. Approximately half of all Fortune 500 companies have already set up their capability centres in India, underscoring the country's emerging prominence in this space.
The GCC sector currently employs around 2.16 million professionals, and this figure is projected to rise to 2.8 million by 2030. Over the last five years, the sector has recorded a compound annual growth rate (CAGR) of 11%, reflecting consistent expansion and a deepening of operations.
Sitharaman also highlighted that the current contribution of GCCs to India's direct gross value addition (GVA) stands at USD 68 billion, equivalent to nearly 1.6% of the country's GDP. She said that by 2030, the gross value added by GCCs could realistically lie between USD 150 billion and USD 200 billion. This projection, she added, demonstrates the considerable potential and scale the sector is poised to reach.
She further noted that engineering research and development-focused GCCs have expanded at a pace 1.3 times faster than the general rate of GCC establishment over the past five years. This shift indicates that India is increasingly being seen as a hub for high-value, innovation-led operations rather than merely a location for backend processes.
Currently, around 1,800 GCCs operate in India, and Sitharaman suggested that the projected headcount of 2.8 million professionals by 2030 may, in fact, be a conservative estimate. She also highlighted India's comparative cost advantage, stating that the operational costs for talent are 30-50% lower than in the United States, the United Kingdom, and Australia.
Over the last decade, the GCC ecosystem in India has transitioned from being primarily execution-driven to serving as strategic centres of innovation, leadership, and transformation for multinational corporations.
The sector's rapid expansion, enhanced focus on R&D, and rising contribution to GDP collectively reflect its critical role in the country's economic transformation. As costs remain competitive and talent deepens, India is well-positioned to solidify its standing as the global capital for high-value capability centres.
Source - PTI
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