BENGALURU, Sept 27 (Askume) – The Indian state of Karnataka aims to double the number of its global capability centres (GCCs) to 1,000 by 2029 and create 350,000 new jobs, a draft policy released on Friday aimed at attracting more foreign companies to set up local offices.
Under the draft policy, a first for any Indian state, the government has outlined incentives such as reimbursement of rent and certain royalties as well as waiver of electricity bills, depending on how many employees are added in the GCC.
It also plans to generate $50 billion in economic output through new offices in 2029.
GCC is a low-cost outsourcing hub for global companies and has evolved over the years to support its parent company in a number of functions including day-to-day operations, finance, and research and development.
There are over 1,700 GCCs across India. They employ over 1.9 million people.
A report released earlier this month by IT industry body Nasscom and consultancy Zinnov expects this number to grow to 2,100-2,200 by 2030, providing employment opportunities to 2.5 million to 2.8 million people.
The incentives are aimed at encouraging companies to set up operations outside Bengaluru’s tech hub to cities such as Mangaluru, Mysuru and Tumakuru, the government said in a statement.
In addition, the government plans to set up three new technology parks, fund skills courses, and provide funding for research projects – particularly those focusing on artificial intelligence.
Karnataka’s draft policy will be open for comments till November 11.
