During his address at the CII GCC Business Summit 2026, Chief Economic Adviser (CEA) Dr. V. Anantha Nageswaran highlighted the significant evolution of India's Global Capability Centres (GCCs). He noted that these centers, which initially established a presence in India due to cost advantages, have now transformed into crucial hubs for advanced engineering, product development, and artificial intelligence.
India's GCC Transformation
India currently hosts approximately 2,100 GCCs, employing around 2.3 million professionals. These centers have collectively generated over $64 billion in revenue, with projections to exceed $100 billion. Dr. Nageswaran emphasized that India is home to roughly half of all GCCs globally, a scale unmatched by any other nation. What began as basic support operations has matured into environments where significant global decisions are now formulated, reflecting a shift from mere cost-effectiveness to high-value capability generation.
AI's Dual Impact on Jobs
Addressing concerns about artificial intelligence (AI) impacting employment, Nageswaran acknowledged that roles involving routine, repetitive, and rule-bound tasks are indeed susceptible to automation. He stated, “The work that was routine, repetitive and rule-bound is exactly the work that AI does most easily and most cheaply.”
However, he also presented a more nuanced view, arguing that India's GCC ecosystem has largely progressed beyond such basic work. He stressed that AI's deployment necessitates a new wave of professionals skilled in designing, developing, testing, and governing AI systems. According to Nageswaran, “Artificial intelligence does not build, deploy or govern itself. Someone has to design these systems.” Therefore, AI is not merely a disruptor but also a creator of new, higher-value opportunities within well-managed GCCs, while those that fail to adapt risk falling behind.
Bridging the Employability Gap
Nageswaran also called for enhanced collaboration between government, industry, and academia to tackle India's employability challenge. Despite a large number of graduates entering the workforce annually, only about half are considered job-ready from day one. He articulated that while the government's role is to establish supportive policies and infrastructure, the industry must take the lead in driving innovation and fostering a skilled workforce. “Government can build the runway. It cannot fly the plane,” he concluded, underscoring the shared responsibility in advancing India's economic capabilities.