Karnataka GCC Policy: $50 Billion Economic Output & 3.5 Lakh Jobs by 2029

Bengaluru, Sep 27 (PTI) The Karnataka Government on Friday launched a draft Global Capacity Centres (GCC) policy with the aim to generate USD 50 billion economic output and attract 500 new GCCs by 2029, creating 3.5 lakh jobs.
With this, the government has targeted to double global capability centres in the State to 1,000 by 2029, they said.
According to officials, a key highlight of the policy is the establishment of Global Innovation Districts, with three new state-of-the-art technology parks — one in Bengaluru and two in "Beyond Bengaluru" clusters.
These parks will feature cutting-edge infrastructure to foster collaboration between startups, tech leaders, and academia. Anchor investors in these districts will receive special incentives, with mega projects eligible for customised packages, they said.
"To support AI research, the government will establish a Centre of Excellence (CoE) for AI in Bengaluru, operating through a hub-and-spoke model across academic institutions. An AI Skilling Council with industry participation will also be launched, with the government funding curriculum development," an official statement said.
Officials said the policy places special emphasis on expanding the GCC ecosystem beyond Bengaluru. It introduces a 'Beyond Bengaluru Package', offering recruitment assistance, rental support, co-working space creation, property tax reimbursement, and the formation of Cluster Anchor Groups.
Speaking at the event, Information Technology and Biotechnology Minister Priyank Kharge said: "Today, we proudly launch India's first dedicated policy for Global Capability Centres (GCCs), reaffirming Karnataka's position as the top destination for innovation and business transformation. GCCs have evolved from back-office operations to becoming critical drivers of global strategic initiatives, R&D, and technology solutions."
He emphasised that with a workforce of over 1.2 million and contributing USD 22.2 billion to the economy, GCCs have been a vital source of growth and employment for Karnataka.
"Through this policy, we expect the GCC sector to grow at a compound annual rate of 12-14 per cent over the next decade and foresee Karnataka holding nearly 50 per cent of the National GCC market share by 2029. We are committed to creating an ecosystem that fosters innovation, supports R&D, and nurtures top talent, ensuring Karnataka remains the most attractive destination for GCCs globally," Kharge said.
According to the draft policy, a dedicated GCC support unit within the Department of Electronics, IT, BT, and S&T will be established to serve as a Single Point of Contact (SPOC) for GCCs.
This unit will streamline coordination with government departments, fast-track approvals, provide real estate scouting support, and facilitate local ecosystem integration. Additionally, a Global Outreach Initiative with substantial marketing budgets will promote Karnataka's GCC ecosystem on the international stage.
A key element of the policy is the creation of the GCC Acceleration and Investment Network, a strategic body comprising global leaders and industry experts. This network will guide Karnataka's GCC initiatives, attract investments, promote innovation, and drive talent development.
"The policy sets ambitious targets to attract 500 new GCCs by 2029, bringing the total to 1,000, creating 3.5 lakh new jobs, and generating an economic output of USD 50 billion. Under the Talent Pillar, the policy aims to facilitate internships for up to 1 lakh individuals in leading GCCs and has earmarked Rs 100 crore Innovation Fund to support joint research projects between academia and GCCs," it stated.
According to officials, this policy is designed to enhance investor confidence, promote seamless collaboration with the local innovation ecosystem, and position Karnataka as a global leader in AI research and development.
Crafted through extensive industry research and stakeholders consultations, it draws insights from over 500 discussions with experts and industry leaders, they said, adding, the result is a comprehensive framework that sets ambitious goals for growth, incentives, and collaboration.
The draft policy is now open for public comments, and the government invited inputs from all stakeholders to refine and strengthen the policy further.
Secretary to the Government of Karnataka's Department of Electronics, IT, BT and S&T, Ekroop Caur, presented an overview of the draft GCC policy, detailing its objectives, vision, and goals and emphasised that it seeks to expand the GCC ecosystem beyond Bengaluru through the introduction of the 'Beyond Bengaluru Package', aimed at attracting investments and fostering development across the state.
"Our target is to establish 500 new GCCs by 2029, which will create 3.5 lakh new jobs and generate an economic output of USD 50 billion," she said.
"Karnataka's GCC Policy 2024-2029 is a testament to the state's proactive approach to enhancing global competitiveness, driving innovation, and positioning itself as a premier destination for GCCs worldwide," it stated.
According to the draft policy, to further strengthen the talent ecosystem, the policy will incentivise GCCs for skilling local talent, including technical and soft skill enhancement for graduates and diploma holders. The development of future-oriented curricula will be supported, with funding for training students and master faculties.
Reimbursement will be provided to GCCs for internship stipends, with an aim to provide internships to overall one lakh students during the policy period. The policy will support joint research projects between academic institutions and GCCs, funding project costs to encourage industrial applications of academic research.
Recruitment assistance will be provided to GCCs setting up or expanding operations beyond Bengaluru, it stated.