Global Capability Centers (GCC) in India : Gujarat unveils its GCC Policy 2025-2030

published on 20 Februrary 2025 | reading time approx. 3 minutes

India is emerging as a key hub for Global Capability Centers (GCCs). This growth is driven by the country’s rapid technological progress, digital transformation and competitive workforce. There are about 1700 GCCs in India employing more than 1.5 million professionals. The market of GCC in India is expected to be doubled with a size of over 100 billion euros by 2030.

In this context, the Indian state of Gujarat, home to numerous German and DACH companies’ manufacturing facilities, which also has large number of IT companies, is strengthening its position as a premier destination for GCCs with the launch of the Gujarat GCC Policy 2025-2030. This policy aims to attract global investment and drive technological advancements by offering a range of incentives for setting up GCCs in Gujarat.

Key Incentives Under Gujarat GCC Policy 2025-2030

Well known for its business-friendly environment, Gujarat now aims to position itself as a highly competitive hub for companies looking to establish or expand their GCC operations through this policy. In this alert, we have provided a brief overview of the benefit and incentives that Gujarat is offering for setting-up a GCC in the state.

CAPEX Support to support Infrastructure development

The policy extends significant capital expenditure support for GCC set-up. It provides 20 percent financial assistance for non-IT Infrastructure and 30 percent support for IT Infrastructure.

Additionally :

Category 1 units with a Gross Fixed Capital Investment (GFCI) of less than 2.50 billion INR (~27.50 million euros) can avail financial assistance of up to 500 million INR (5.5 million euros), and
Category 2 mega projects with a GFCI of 2.5 billion INR (~27.50 million euros) Cr or more are eligible for support of up to 2 billion INR (~11 million euros).

OPEX Support: Reducing Operational Expenses

The policy also eases operational costs by offering 15 percent support on eligible operational expenditure. To further facilitate business operations, Bandwidth & Cloud Rental expenses are capped at 35 percent of eligible OPEX. Category 1 units with a GFCI below 2.50 villion INR (~27.50 million euros) can receive financial assistance of up to 200 million INR (~2.19 million euros), whereas Category 2 mega projects with a GFCI of 2.50 billion INR (~27.50 million euros) or more can avail support of up to 4 billion INR (~22 million euros).

Special Incentives for Employment & Skill Development

Employment Generative Incentive (EGI): To encourage job creation, the policy introduces the Employment Generative Incentive (EGI), offering 50 percent of CTC as a one-time support. Female employees can receive up to 60,000 INR while male employees are eligible for up to 50,000 INR .
Atmanirbhar Gujarat Rojgar Sahay / Social Security Support: To strengthen job security, the policy provides 100 percent EPF support for female employees and 75 percent EPF support for male employees for a period of five years.

Financial Incentives for Sustainable Growth

Interest Assistance: To ease financial burdens, the policy extends 7 percent interest assistance on term loans, with eligible companies receiving up to 10 million INR per annum for five years.
Electricity Duty Incentive: GCCs establishing operations in Gujarat can benefit from a 100 percent exemption from electricity duty for five years, reducing overhead costs and enhancing operational efficiency.

Support for Skill Development and Innovation

Skilling of Local Talent: To equip the workforce with relevant skills, the policy offers Direct Benefit Transfers (DBT) of up to 50,000 INR. Working professionals can claim 50 percent reimbursement, while undergraduate and graduate students can receive 75 percent reimbursement for skilling programs.
Quality Certification Support: To encourage adherence to international quality standards, the policy provides 80 percent reimbursement of certification costs, up to 1 million INR Lakh, covering up to five certifications.

Additional Benefits Under Gujarat IT/ITeS Policy (2022-27)

In addition to the core incentives, GCCs can avail benefits under the Gujarat IT/ITeS Policy (2022-27), including support for ICT & Deep Tech Incubators and ICT & Deep Tech Accelerators. Startups leveraging GCC incubation and acceleration programs are also eligible for incentives under the ICT & Deep Tech Startups initiative.

Our Comments

The Gujarat GCC Policy 2025-2030 reinforces the state’s commitment to making Gujarat a global hub for GCCs. With a strategic focus on infrastructure development, employment generation, skill enhancement, and technological advancement, this policy provides great option for companies who are looking to set-up a GCC. One should consider the new Gujarat policy with strong government support while deciding on the GCC.

For any clarifications or support on Gujarat GCC Policy or setting-up a GCC, please feel free to contact us. We are proud to have a strong local presence in Gujarat with our office in Ahmedabad, ensuring that we are always close to our clients. Roedl & Partner is here to assist you with our comprehensive range of services.