Recently, Uttar Pradesh (UP) unveiled an ambitious roadmap designed to transform the state into a magnet for Global Capability Centres (GCCs)—strategic offshore hubs for multinational corporations. Spearheaded by Invest UP, the state’s investment facilitation agency, the GCC Policy 2024 and its launch at the Global Capability Conclave in Lucknow has garnered widespread attention.
This blog post delves into:
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What GCCs are and why they matter
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Key pillars of the new policy
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Highlights from the Lucknow Conclave
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Projected economic and social gains for UP
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Challenges, opportunities, and strategic outlook
1. What GCCs Are—and Why They Matter
Global Capability Centres, once known as captive centres or in-house shared services, are units set up by multinationals globally to support their corporations via technology, analytics, R&D, finance, HR, and more. Initially focused on back-office cost arbitrage, they now serve as innovation engines—fueling AI, cloud, cybersecurity, engineering, and advanced analytics initiatives.
Today, India hosts over 1,700 operational GCCs, and this number is expected to grow to around 2,200 by 2029. These centers not only generate high-value employment but also anchor large-scale digital innovation ecosystems, providing India and states like UP a strategic role in the global tech value chain.
2. Inside the GCC Policy 2024: A Multi-Pronged Incentive Package
The UP Cabinet approved the GCC Policy 2024 in early May. This forward-thinking framework offers sweeping fiscal and non-fiscal incentives to attract GCCs across multiple industries—including IT/ITeS, BFSI, telecom, healthcare, pharmaceuticals, automotive, and next-gen tech.
Key benefits include:
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Operational subsidy: Up to 20% rebate on lease, bandwidth, power, cloud costs, capped at ₹40 crore/year (Level-1 GCCs) and ₹80 crore/year (Advanced GCCs), for five years.
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Payroll support: ₹1.8 lakh per local employee & ₹1.2 lakh per non-local, reimbursed (₹20 crore/year cap for three years).
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Freshers recruitment subsidy: ₹20,000 per graduate hired from UP colleges (min. 30 recruits), for five years.
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EPF reimbursements: Up to ₹1 crore/year for livelihoods supporting women, SC/ST, transgender, and Divyangjan talents for three years.
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Land incentives & duty waivers: 30–50% subsidy on land cost, 100% stamp duty waiver.
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Capital subsidy & interest support: ₹10–25 crore cap depending on GCC tier.
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SGST refunds, IPR grant support, startup ideation and R&D funding, internship and skill training reimbursements.
GCC categories:
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Level‑1 GCC: ₹15 crore + 500 jobs outside NCR; ₹20 crore inside NCR.
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Advanced GCC: ₹50 crore + 1,000 jobs outside NCR; ₹75 crore inside NCR.
Policy goals:
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Attract 1,000+ new GCCs in UP, creating over 500,000 jobs.
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Enhance ecosystem through infrastructure, SEZs, tech parks, sustainability standards.
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Leverage Advantage UP: talent, location, transport, expressways & airports .
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Develop CoEs in AI, ML, blockchain, cybersecurity, digital engineering.
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Support infrastructure in Tier‑2/3 areas to drive inclusive growth .
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Simplify red tape through single-window clearance systems and investor handholding.
3. GCC Conclave: Spotlight on Strategy & Stakeholder Buy-In
On June 10, 2025, UP hosted its first-ever GCC Conclave in Lucknow at Hotel Taj—an event that marked a significant milestone .
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| PS, IIDD, Govt. of Uttar Pradesh |
Who attended:
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Chief Secretary Manoj Kumar Singh, Principal Secretaries, industry leaders from NASSCOM, Microsoft, TCS, HCL, MAQ, Standard Chartered, Deloitte, Trident, and more.
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~20 leading firms showcased potential GCC set‑ups with pledges to invest in UP.
Key themes discussed:
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Infrastructure & CRE frameworks – vital for commercial space and CoE development .
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Talent ecosystem – bridges between colleges/training institutions and GCC needs .
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Ease of doing business – reviewing bye‑laws, approvals, single-window governance .
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Regional development – spotlighting Jhansi’s planned city; momentum in Lucknow, Varanasi, Kanpur, Prayagraj.
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Innovation & R&D – startups, IPR, CoE focus.
Highlighted statements:
“I have witnessed UP’s journey—from Delhi to Davos… Few global economies possess the potential to double their size in such a short span.” — Chief Secretary Manoj Kumar Singh.
The conclave also served as a springboard for future regional engagement—with planned events in Bengaluru, Chennai, Hyderabad, and global roadshows targeting Europe and the US.
4. Expected Impacts: Jobs, Investment, Balanced Growth
Massive Employment Scale-Up
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Estimated 200,000–500,000 new jobs over the next 5 years, spanning IT, analytics, finance, HR, customer support.
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Focused inclusion via freshers’ hiring subsidies and provisions for social justice group EPF support.
Increased Investment & Global Profile
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Aimed at drawing Fortune 500 firms, top Indian corporates with ≥₹100 crore FDI.
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Microsoft and MAQ have already chalked out massive centers in Noida—10,000 and 3,000 seats respectively.
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Enhanced by ongoing Dev‑Corridor, expressways, airports, and Noida International Airport near Jewar .
Tier 2 & 3 Development
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Moves beyond NCR to Lucknow, Kanpur, Varanasi, Prayagraj, Jhansi—stimulating growth, job markets, and urban quality of life.
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The hub-and-spoke model underpins this urban devolution strategy .
Ecosystem & Infrastructure Strengthening
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Offers immediate support with land subsidies, stamp-duty waivers, and CoE facilitation.
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Infrastructure investments totaling ₹5.31 lakh crore support expressways, airports, IT parks, SEZs, and data-centric clusters.
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Launch of an AI engineering hub and semiconductor park near Jewar International Airport.
Digital & Startup Ecosystem Boost
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CoE in emerging fields plus IPR grants and startup ideation support.
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Early investments support internship programs, skill training ties with local institutions .
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Reflects UP’s push to become a “digital-first” state—AI, IT, cloud, and cybersecurity integration.
5. Challenges & Strategic Outlook
Policy Execution & Investor Experience
The success hinges on UP’s ability to operationalize red-tape reduction and single-window clearance—delivering speed, predictability, and transparency for investors .
Skill Availability & Quality
Though UP has a large youth pool, upskilling and aligning education to real GCC demands—especially in tech, analytics, and fintech—is essential. Close collaboration between academia and industry is key .
Tier 2/3 Infrastructure Readiness
Cities like Jhansi offer land and ambition, but need supporting education, transport, housing, and urban ecosystems. Investments similar to those in Noida and Lucknow must be replicated .
Sustaining Beyond Incentives
While initial subsidies attract GCCs, long-term retention depends on maintaining competitiveness, regulatory stability, robust infrastructure (power, air, rail), and enabling lifestyle amenities to retain talent.
Environmental & Inclusive Balance
The policy’s green building norms and risk frameworks reflect a commitment to sustainable growth. Integrating GCCs into UP’s broader socioeconomic fabric—including agriculture-enhanced growth and regional balance—is still in progress.
6. Conclusion: A Defining Moment
Uttar Pradesh’s GCC Policy 2024 and the Clarke-econ-inclined Lucknow conclave represent a watershed moment—signaling UP’s move from agrarian dominance to a digital services powerhouse. The policy’s scope is vast: over 1,000 new GCCs, half a million high-value jobs, ecosystem development, startup innovation, and regional inclusion.
A quote from the Chief Secretary captures the ambition well:
“Few global economies possess the potential to double their size in such a short span”.
Realizing this vision will require seamless policy execution, quality infrastructure, talent alignment, and sustained collaboration across government, industry, and academia. If successful, UP stands to redefine not only its own economic narrative but also India’s role as a destination for global digital services—and it all starts here.
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