K’taka unveils GCC policy, aims to generate USD 50 billion economic output by 2029

PTI, Sep 27, 2024, 1:52 PM IST

The Karnataka Government on Friday launched a draft Global Capacity Centres (GCC) policy with the aim to generate USD 50 billion economic output and attract 500 new GCCs by 2029, creating 3.5 lakh jobs.

According to officials, this policy is designed to enhance investor confidence, promote seamless collaboration with the local innovation ecosystem, and position Karnataka as a global leader in AI research and development.

Crafted through extensive industry research and stakeholders consultations, it draws insights from over 500 discussions with experts and industry leaders, they said, adding, the result is a comprehensive framework that sets ambitious goals for growth, incentives, and collaboration.

Speaking at the event, Information Technology and Biotechnology Minister Priyank Kharge said: “Today, we proudly launch India’s first dedicated policy for Global Capability Centres (GCCs), reaffirming Karnataka’s position as the top destination for innovation and business transformation. GCCs have evolved from back-office operations to becoming critical drivers of global strategic initiatives, R&D, and technology solutions.” He emphasised that with a workforce of over 1.2 million and contributing USD 22.2 billion to the economy, GCCs have been a vital source of growth and employment for Karnataka.

“Through this policy, we expect the GCC sector to grow at a compound annual rate of 12-14 per cent over the next decade and foresee Karnataka holding nearly 50 per cent of the National GCC market share by 2029. We are committed to creating an ecosystem that fosters innovation, supports R&D, and nurtures top talent, ensuring Karnataka remains the most attractive destination for GCCs globally,” Kharge said.

The draft policy is now open for public comments, and the government invited inputs from all stakeholders to refine and strengthen the policy further.

Secretary to the Government of Karnataka’s Department of Electronics, IT, BT and S&T, Ekroop Caur, presented an overview of the draft GCC policy, detailing its objectives, vision, and goals and emphasised that it seeks to expand the GCC ecosystem beyond Bengaluru through the introduction of the ‘Beyond Bengaluru Package’, aimed at attracting investments and fostering development across the state.

“Our target is to establish 500 new GCCs by 2029, which will create 3.5 lakh new jobs and generate an economic output of USD 50 billion,” she said.

According to officials, a key highlight of the policy is the establishment of Global Innovation Districts, with three new state-of-the-art technology parks — one in Bengaluru and two in “Beyond Bengaluru” clusters.

These parks will feature cutting-edge infrastructure to foster collaboration between startups, tech leaders, and academia. Anchor investors in these districts will receive special incentives, with mega projects eligible for customised packages, they said.