**Executive Summary**
This report addresses questions regarding the growth and promotion of Global Capacity Centres (GCCs) in India, particularly in tier 2 and tier 3 cities. The report outlines the Government of India's active role in promoting the IT sector, including the expansion of GCCs. It highlights the projected growth of the GCC market and the implementation of a National Framework to guide states in promoting GCCs in tier-II cities, following the Union Budget 2025-26 announcement.
**Key Points / Main Content**
* **IT Sector Growth and Revenue:**
* The IT sector has demonstrated strong growth over the past five years.
* Estimates for 2024-25 show total revenue of $282.6 billion, including $224.4 billion in export revenue and $58.2 billion in domestic revenue.
* GCCs generated USD 64.6 billion in revenue during FY 2024–25.
* **GCC Landscape:**
* India hosts over 1,750 GCCs with approximately 2,975 units nationwide.
* Over 220 GCC units are located in Tier-2 and Tier-3 cities.
* The number of GCCs is expected to grow to around 2,400–2,550 by 2030.
* Industry estimates project India's GCC market to reach USD 110 billion by 2030.
* **National Framework for GCC Promotion:**
* The Union Budget 2025-26 announced the formulation of a National Framework to guide States in promoting GCCs in Tier-II cities.
* The framework suggests measures to enhance talent availability, infrastructure, bylaw reforms, and industry collaboration mechanisms.
* **State and Union Government Roles:**
* Several states have already notified dedicated GCC or IT/ITeS policies.
* The proposed National Framework is intended as an enabling and guiding mechanism for States.
* Financial incentives are implemented through State-specific policies.
* The Union Government supports the ecosystem through digital infrastructure, skilling initiatives, and ease-of-doing-business reforms.
**Impact Analysis**
**States, including Andhra Pradesh, Karnataka, Telangana, Uttar Pradesh and Madhya Pradesh**
* **Impact:** The National Framework is intended to guide and enable these States in promoting GCCs in Tier-II cities, further attracting and expanding GCC operations in Tier-2 and Tier-3 cities.
* **Action Required:** States should review the framework and implement state-specific policies to provide financial incentives and support for GCCs, complementing the Union Government's initiatives.
**Global Capability Centres (GCCs)**
* **Impact:** GCCs will benefit from the enhanced ecosystem, including improved infrastructure, talent availability, and ease of doing business, leading to further growth and expansion.
* **Action Required:** GCCs should leverage the state-specific incentives and the support provided by the Union Government to expand their operations, particularly in Tier-2 and Tier-3 cities.
Key Entities Referenced
Global Capacity Centres (GCCs): Companies establishing centers across India, particularly in Tier-2 and Tier-3 cities
Union Budget 2025–26: Announced the formulation of a National Framework to guide States in promoting GCCs in Tier-II cities.
Ministry of Electronics and Information Technology: The ministry answering the questions regarding Global Capability Centres (GCCs).
National Framework to guide States: A proposed framework to guide states in promoting GCCs in Tier-II cities, which will suggest measures for enhancing the availability of talent and infrastructure, building byelaw reforms, and mechanisms for collaboration with industry.
Andhra Pradesh: State mentioned as being especially important in the construction of Global Capacity Centres
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 2931
TO BE ANSWERED ON: 17.12.2025
GLOBAL CAPACITY CENTRES IN ANDHRA PRADESH
2931. SHRI B K PARTHASARATHI:
SHRI BASTIPATI NAGARAJU:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the number of Global Capacity Centres (GCCs) that have been constructed in tier 2 and tier 3 cities
across the country especially in Andhra Pradesh, district wise;
(b) the total annual revenue generated by GCCs present in tier 2 and tier 3 cities, year and State-wise;
(c) whether National framework to guide States on promoting GCCs in tier II cities has been framed by
the Union Government;
(d) if so, the details thereof and if not, the reasons therefor;
(e) whether in the framework Union Government is likely to financially assist States in attracting GCC
at tier 1 and tier 2 cities; and
(f) if so, the details thereof and if not, the reasons therefor?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (f): Government of India is actively promoting the growth of the IT sector across the country.
The performance of this sector over the last 5 years and estimates for 2024-25 are mentioned below:
(in billion dollars)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25(E)
Export revenue 147 152 178 194 199.5 224.4
Domestic revenue 44 45 49 51 54.4 58.2
Total Revenue 191 196 227 245 254 282.6
(E) = Estimate Source: NASSCOM
This strong growth momentum has created a favourable ecosystem for the expansion of Global
Capability Centres (GCCs) in India. At the same time, GCCs themselves have also contributed to
this growth of the IT sector.
India currently hosts more than 1,750 Global Capability Centres (GCCs) with about 2,975 GCC
units across the country. Over 220 units are located in Tier-2 and Tier-3 cities which reflects the
increasing decentralisation of GCCs beyond metropolitan centres.These GCCs together generated USD 64.6 billion in revenue during FY 2024–25.
As per industry’s estimate, India’s Global Capability Centre (GCC) market is projected to reach
USD 110 billion by 2030. The number of GCCs in the country is expected to grow from the current
levels to around 2,400–2,550 by 2030
Strengthening the GCCs
To further strengthen the GCC ecosystem, the Union Budget 2025–26 announced the formulation
of a National Framework to guide States in promoting GCCs in Tier-II cities.
This framework suggest measures for enhancing the availability of talent and infrastructure, building
byelaw reforms, and mechanisms for collaboration with industry.
Several States, including Andhra Pradesh, Karnataka, Telangana, Uttar Pradesh and Madhya
Pradesh, have already notified dedicated GCC or IT/ITeS policies to attract and expand GCC
operations in Tier-2 and Tier-3 cities.
The proposed national framework is intended to act as an enabling and guiding mechanism for
States.
Financial incentives for GCCs are implemented through State-specific policies, while the Union
Government supports the ecosystem through digital infrastructure, skilling initiatives, and ease-
of-doing-business reforms.
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