Paper: GS – III, Subject: Economy, Topic: Growth and Development, Issue: Global Capability Centres.
Context:
India has evolved from a back-office outsourcing base into the world’s largest Global Capability Centres (GCC) hub, where centres now drive innovation, strategy, and long-term corporate growth, not just operational support.
Key Takeaways:
Evolution of Global Capability Centres (GCCs):
- Initial Phase: GCCs were primarily established to leverage labor arbitrage. Focus was on routine IT and business process tasks.
- Transition to GCC 4.0: The evolution has progressed through four distinct waves. Current GCCs are characterized by end-to-end product ownership. They manage global strategy leadership, high-end R&D, and proprietary IP creation.
- Investment in Advanced Technologies: Approximately 58% of GCCs are investing in Agentic AI, which are autonomous systems capable of complex reasoning and execution.
Need for Proactive Policymaking:
- From Regulation to Facilitation: Policymakers should act as facilitators to accelerate GCC growth.
- National GCC Policy Framework (2026–27): Provide structured support; effective implementation is key.
- Single-Window Clearance: Simplify and speed up legal establishment of GCCs.
- Rationalised Transfer Pricing: Offer tax safe harbours for R&D-intensive GCC operations.
- Industry–Academia Collaboration: Strengthen deep-tech skills and workforce training.
- Tier-II City Incentives: Provide capital subsidies to promote expansion beyond metros.
India’s rise as a global GCC hub reshapes the economic landscape. Sustained growth requires proactive policies, talent development, and tech investment, ensuring innovation-driven leadership and long-term global competitiveness.
Source: (The Hindu)
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