The Karnataka Government on September 27 launched a draft Global Capacity Centres (GCC) policy with the aim to attract 500 new GCCs by 2029, making the southern state the first in the country to launch a dedicated framework towards this segment.
GCCs are offshore captive centres of multinationals that handle support operations such as back-office functions, IT assistance and customer relationship management, among others. Some large companies use GCCs as centres of excellence as well.
Also Read: Bengaluru leads office space absorption by global capability centers in India at 4.3 mn sq ft: Report
According to a report by property consultancy CBRE, Bengaluru led office leasing by GCCs between 2022 to H1 2024 with a 40% share in the overall 53 million square feet of office space taken up by the segment across the top six cities in India during the 30-month period.
Real estate experts have welcomed the Karnataka government’s move, stating that the draft policy announcement aligns favourably with the growth momentum prevailing in the sector. “The new (draft) policy, coupled with strategic interventions, is poised to strengthen the GCC ecosystem further, thereby attracting both occupiers and investors to the state,” said Ram Chandnani, Managing Director, Advisory and Transaction Services, CBRE India.
Also Read: 5 factors that make Bengaluru and Hyderabad leading hubs for global capability centres
Five key takeaways
Here are five key announcements from the draft policy which is now open for public comments.
1) The 2024-2029 draft policy aims to create 3.5 lakh new jobs and generate an economic output of $50 billion.
2) As per the state government, a key objective of the draft policy is to ensure balanced growth throughout the state by championing the ‘Beyond Bengaluru’ initiative.
The government will provide reimbursement on property tax and rental expenses for GCCs setting up their centres in Beyond Bengaluru clusters such as Mangaluru, Mysuru, Hubballi-Dharwad – Belagavi, Kalaburagi, Tumakuru, and Shivamogga.
“Setting up co-working spaces in (a) Beyond Bengaluru area will be promoted by reimbursing operational expenses,” the draft policy document stated.
Also Read: Bengaluru leads leasing by Global Capability Centres in India with 40% share between 2022 to H1 2024: Report
3) As part of the draft policy, the government will establish three new technology parks—Global Innovation Districts—including one in Bengaluru and two in the Beyond Bengaluru clusters. Companies establishing their GCCs as anchor investors in Beyond Bengaluru’s Global Innovation Districts will receive special incentive packages.
The government will consider a customised package of incentives for mega projects.
4) The draft policy also proposes creation of a dedicated GCC support unit to act as a single point of contact to streamline approvals, enhance coordination, promote integration with local ecosystems and so on.
The unit will develop and manage a live digital portal in collaboration with real estate partners, offering GCCs a one stop platform to explore listings of available commercial spaces across Karnataka.
5) The state government will also establish a Centre of Excellence (CoE) for artificial intelligence in Bengaluru as part of the draft policy.
