Centre Plans National GCC Framework to Cut Red Tape, Boost Global Investments

The central government is likely to finalise a national policy framework for Global Capability Centres (GCCs) this year, Moneycontrol reported. The overarching framework aims to streamline operations and guide state governments on foreign enterprise expansion.

The government has constituted an Inter-Ministerial Group comprising representatives from the Ministry of Electronics and Information Technology, the Commerce Ministry and the Finance Ministry to draft the rules. The draft will be circulated for stakeholder comments before it is finalised, the source said.

The government first flagged the need for a national framework to guide states on GCCs in the Union Budget 2025-26.

Cutting Regulatory Red Tape

A proposed single-window clearance system aims to eliminate redundant administrative hurdles. The system will streamline the 30-plus regulatory approvals currently required by central and state agencies to establish an operational hub.

An entity-based digital locker is also under discussion to prevent companies from repeatedly uploading identical compliance documents.

The national guidelines will not override existing state-level frameworks already notified by Karnataka, Telangana, Haryana, Tamil Nadu and Uttar Pradesh. "

Expanding Beyond Tier-I Cities

The policy intends to steer new capability centres toward well-connected Tier-II cities equipped with adequate housing, schools and social infrastructure, given that Bengaluru, Hyderabad and Chennai cannot absorb the sector's next phase of growth.

The draft also includes a strong emphasis on research and development to help India move up the value chain from back-office operations to higher-value engineering and innovation.

Unlike existing state regulations, the national framework will not offer capital subsidies or tax breaks.

Industry experts expect the framework to improve ease of doing business through stronger inter-ministerial coordination. It will be crucial to acknowledge that the growth of GCCs depends on the entire ecosystem enabling talent mobility and economic opportunity.

Targeting Five Thousand Centres

The regulatory push aligns with the rapid expansion of multinational outposts across the country.

At present, the nation is home to upwards of 2,100 such centres, providing jobs to more than 23 lakh individuals and producing close to $100bn in yearly revenue.

Speaking today at the CII GCC Business Summit 2026, Finance Minister Nirmala Sitharaman said that the setup pace has accelerated from one a week in 2024 to nearly one a day.

She described the government's ambition of scaling this to around 5,000 GCCs by 2030 as "realistic and achievable", noting that roughly two-thirds of Fortune Global 2000 companies are yet to set up a GCC in India.

The sector continues to drive secondary economic growth across real estate, professional services, logistics and consumption.

Capability centres hired approximately 200,000 people over the past year alone, generating an indirect economic impact expected to reach hundreds of billions of dollars.