GCC Regulatory Compliance in India: Key Concerns & Priorities
May 30, 2024 21:52
A new report highlights regulatory compliance as a major concern for GCCs in India, with transfer pricing, SEZ/STPI laws, labor laws, and data protection among top priorities.
New Delhi, May 30 (PTI) India has emerged as a global hub for GCCs but regulatory compliance remains a key concern for the majority of leaders, a report released on Thursday said.
The joint report by industry body Nasscom and KPMG in India revealed that transfer pricing, SEZ and STPI compliance, labour laws, DPDPA, and FEMA are among the top priorities for leaders.
The report drew insights from surveys with more than 75 GCCs, in addition to discussions with C-suite executives.
As many as 81 per cent of the respondents surveyed named transfer pricing as their top regulatory priority for GCCs in India, the report said.
A total of 67 per cent of the people surveyed mentioned SEZ (special economic zones) laws and STPI (Software Technology Parks of India) regulations, while 60 per cent identified labour laws among key concerns.
They were followed by the DPDPA -- Digital Personal Data Protection Act (49 per cent), and FEMA -- Foreign Exchange Management Act (37 per cent).
"By embracing compliance as a strategic imperative, GCCs can not only mitigate risks but also enhance operational efficiencies and foster trust with stakeholders... proactive engagement with regulatory frameworks will be paramount in ensuring sustained success and contributing India's position as a global business hub," the report said.
The report further said India accounts for about half of the GCCs globally with 1,580 of them in FY23.
"Given this momentum, the country is estimated to have 1,900+ GCCs by 2025 with a market size of USD 60 billion," it said.
"Over the last few years, we have witnessed a remarkable growth of GCCs in India with several factors are driving its growth.
"As GCCs continue their growth trajectory, moving up the maturity curve, with factors such as blurring geographic borders, and technology disruptions, these centres are constantly scanning the dynamic risk landscape and adapting to successfully navigate through," Nasscom Vice President Srikanth Srinivasan said.
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