Gujarat aims to be global IT hub with new GCC policy

Karnataka and Tamil Nadu have long been frontrunners in the GCC sector, each implementing targeted policies to attract investments. While Tamil Nadu concentrated on tax incentives linked to salaries and hiring, Karnataka introduced a comprehensive strategy encompassing Tier-II city investments and academic collaborations. Now, Gujarat has stepped into the spotlight with a holistic new GCC policy, designed to leverage emerging industry trends and position the state as a global hub for IT-enabled services and digital transformation.

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In recent years, Karnataka and Tamil Nadu have emerged as frontrunners in India’s Global Capability Center (GCC) landscape, each implementing industry-specific policies to attract investments. Tamil Nadu focused on tax incentives based on salaries and hiring, while Karnataka rolled out a comprehensive framework covering Tier-II city investments, academic partnerships, and infrastructure development. Now, Gujarat has joined the race with a bold and strategic new GCC policy, aiming to position itself as a global hub for IT-enabled services and digital transformation.

Gujarat’s Vision for a Global GCC Destination

The Gujarat Global Capability Center (GCC) Policy (2025-30) seeks to leverage the state’s strategic location, robust logistics, advanced digital connectivity, green energy leadership, and pro-business governance to establish itself as a premier GCC destination. The policy targets high-growth sectors, including IT & ITeS, AI-driven digital transformation, financial services, data centers, R&D hubs, and cybersecurity innovation. With a comprehensive and forward-thinking approach, Gujarat aims to attract global companies seeking to expand or establish their capabilities in India.

Key Highlights of the Gujarat GCC Policy 2025-30

1. Investment and Employment Targets

The Gujarat government has set ambitious goals for its GCC policy, aiming to attract 250 new GCC units while generating more than 50,000 employment opportunities. The state has committed to facilitating investments worth INR 10,000 crore, reinforcing its intent to become a GCC powerhouse.

2. Comprehensive CAPEX & OPEX Support

To encourage investments, Gujarat is offering robust capital expenditure (CAPEX) and operational expenditure (OPEX) support based on project categories:

• Category I investments (Global Financial Center Index (GFCI) less than INR 250 Cr) can avail up to INR 50 Cr CAPEX support and INR 20 Cr annual OPEX support.
• Mega Projects (Category II) can receive up to INR 200 Cr CAPEX support and INR 40 Cr annual OPEX support.
• The support covers building construction, hardware, software, and networking infrastructure, ensuring seamless operations for GCCs.

3. Employment Generation Incentive (EGI)

The policy encourages job creation and gender diversity through structured incentives:

• Companies receive one-time support of up to INR 50,000 per male employee and INR 60,000 per female employee.
• To promote local talent development, the policy provides funding for globally recognized skilling programs, offering up to INR 50,000 per course or 50% of the course fee for working professionals.
• Students receive even higher support, with 75% of the course fee covered.
• Organizations can also benefit from EPF contribution reimbursement for five years, reducing operational costs significantly.

4. Infrastructure and Operational Support

The Gujarat GCC Policy provides several additional benefits to facilitate smooth business operations:

• Electricity duty reimbursement for five years, reducing energy costs for companies.
• Interest subsidy of 7% on term loans (up to INR 1 Cr per annum) to ease financial burdens.
• Quality certification reimbursement up to 80% (maximum INR 10 lakh) to help GCCs maintain global standards.
• Special incentives for firms offering incubation facilities and startup support, fostering an innovation-friendly ecosystem.

A Game-Changer for Gujarat’s GCC Ambitions

Gujarat’s foray into the GCC sector with a well-structured policy is a strategic move to compete with established hubs like Bengaluru and Chennai. By focusing on investment-friendly policies, employment generation, infrastructure development, and sectoral specialization, the state is positioning itself as a formidable player in the GCC domain.

With strong government backing, attractive incentives, and a business-friendly environment, Gujarat’s new policy has the potential to attract global corporations looking for cost-effective, well-connected, and innovation-driven locations. As companies evaluate their next GCC destination, Gujarat is making a compelling case to be their preferred choice.

While Karnataka and Tamil Nadu have enjoyed the first-mover advantage in the GCC landscape, Gujarat’s aggressive and comprehensive policy framework is set to challenge the status quo. By addressing critical investment concerns and fostering a thriving ecosystem, the Gujarat GCC Policy (2025-30) is expected to usher in a new era of growth, employment, and innovation in the state. The coming years will determine whether Gujarat can achieve its ambitious targets and emerge as a true global GCC hub.