India's Expanding GCC Market Sees New Contenders
For years, India's Global Capability Center (GCC) landscape has been dominated by established tech hubs such as Bengaluru and Hyderabad. However, as the market rapidly expands, new contenders are emerging, making a strong case for a significant share of the next wave of growth. Mohali in Punjab and the state of Uttar Pradesh are actively pitching unique propositions to attract global businesses, moving beyond just cost advantages.
This evolving competition was a central theme at a recent technology and GCC leadership conference organized by global management consulting firm Zinnov, featuring key leaders from Punjab, Uttar Pradesh, and Karnataka.
Mohali's Proposition: Liveability, Planning, and Talent
Punjab's pitch for Mohali begins with a focus on quality of life and efficient infrastructure. Gurkirat Kirpal Singh, Principal Secretary for Industries & Commerce, Investment Promotion, and Information Technology Industry in Punjab, highlighted the stark contrast in commute times. He noted that reaching Mohali's IT city from the international airport takes mere minutes, compared to the significantly longer journeys often experienced in Bengaluru.
"If I am spending an additional hour every day, that translates into roughly 730 hours a year, almost one whole month of time that I could have spent with my family or for myself," Singh emphasized, underscoring Mohali's superior work-life balance.
Mohali boasts a substantial talent pool of approximately 1.25 lakh tech professionals across the tri-city region, supported by numerous engineering colleges, ITIs, polytechnics, and institutions like Plaksha University. Furthermore, the city's infrastructure, featuring eight-lane and six-lane roads, was planned decades in advance to mitigate traffic issues.
To sweeten the deal for GCCs, Punjab offers significant incentives, including 125% of fixed capital investment (subject to policy conditions), an employment-generation subsidy of ₹7,500 per seat created, electricity duty incentives, and a capital subsidy of up to ₹10 crore.
Uttar Pradesh's Ambition: AI City and Second Wave Growth
Uttar Pradesh is also aggressively pursuing GCC investments, aiming to become a key player in the "second wave" of India's GCC growth. Arvind Kumar, Technology & GCC Strategy Leader and GCC Head at Invest UP, stated that the state has prioritized fundamental hygiene factors like law and order to create a conducive business environment. Building on lessons from mature GCC hubs, UP is now focusing on developing robust infrastructure, Grade A office spaces, and a skilled talent pipeline.
Lucknow is being developed as an AI City and a center of excellence for artificial intelligence, with around 25 institutes identified to integrate emerging and deep-tech areas into their curricula. Kumar noted the importance of senior leadership in fostering a thriving GCC ecosystem, drawing parallels with Bengaluru's success.
UP's incentive package for GCCs includes capital, operational, and payroll subsidies for the first three years, along with support for establishing centers of excellence, internships, intellectual property, and patents. The state is also enhancing its investor support systems through platforms like Nivesh Mitra and Nivesh Sarathi, which consolidate approvals across various departments.
Bengaluru's Defense: Deepening a Mature Ecosystem
Despite the rise of new contenders, Karnataka is not resting on its laurels. Sanjeev Kumar Gupta, CEO of the Karnataka Digital Economy Mission, highlighted the immense growth potential in the GCC market, which is projected to expand from $60 billion to $100 billion. Karnataka aims to capture over $20 billion of this opportunity while also supporting other states.
Gupta pointed out Bengaluru's unparalleled ecosystem, featuring multiple tech nodes within the city itself, alongside expanding propositions in other cities like Mysuru and Mangaluru under the "Bangalore Plus" strategy. Karnataka's trump cards remain its robust talent supply, innovation ecosystem, and deep-tech capabilities, which continue to attract a significant share of Fortune 2000 companies.
The Next Battleground: Ecosystem Depth and Innovation
The competition is intensifying across various fronts. Mohali is banking on its proximity, planned infrastructure, talent, incentives, and superior quality of life. Uttar Pradesh is leveraging its vast scale, improving infrastructure, AI focus, academic institutions, and a dispersed talent base.
Karnataka, meanwhile, is deepening its already mature ecosystem, focusing on talent, trust, innovation, deep tech, and global leadership. As Gupta aptly put it, "The water will flow where the slope is, where the ecosystem exists. But multiple canals can be created." The future of India's GCC growth will likely see multiple hubs flourishing, with success hinging on which regions can build the most robust and innovative ecosystems.