Unlocking Andhra’s Digital Future: The IT & Global Capability Centers Policy (2024–2029)

published on 26 March 2025 | reading time approx. 6 minutes

India is emerging as a key hub for Global Capability Centers (GCCs), driven by rapid technological advancements and a skilled workforce. With approximately 1,700 GCCs operating in India and expected market growth surpassing USD 100 billion by 2030, states are competing to attract these global centers.

Andhra Pradesh, with its ambitious IT & GCC Policy 2024-2029, aims to establish itself as a premier destination for GCCs by offering attractive incentives and fostering technological advancements.

The Frequently Asked Questions related to the Andra Pradesh’s GCC Policy (Referred as ‘Policy’) has been discussed herein under.

What is the objective of the Policy? »

What is the time-period of the Policy? »

What is the Policy Framework? »

Who all are eligible to avail the benefits under the Policy? »

What are the eligibility criteria under to avail benefits under all three models? »

What are the Incentives for infrastructure developers under the Policy? »

What are the eligibility criteria for the IT and GCC Firms? »

What are the incentives for the IT and GCC Firms? »

Are there provisions for Skill Development? »

How Policy will be implemented? »

What are the objectives of the Policy?

The policy is designed to:

Build a global talent hub with employment generation at scale, aiming to create saturation-level job opportunities across all districts.
Enhance human capital with continuous skilling aligned to a flexible workforce model, preparing the youth for new-age digital roles.
Promote advanced technologies with a focus on deeptech, AI, cybersecurity, and automation.
Leverage emerging trends like remote work, gig economy, and hybrid workspaces to democratize access to global careers.
Enable inclusive, innovation-led growth and strengthen Andhra Pradesh's leadership in India's evolving digital economy.
Foster entrepreneurship through initiatives such as "One Family, One Entrepreneur" under the Swarna Andhra Vision 2047.

What is the period covered under the Policy?

The policy is valid for 5 years starting from 12 December 2024 or until a new policy is introduced. Amendments, if made, will be prospective and will not affect benefits already granted. The Government of Andhra Pradesh retains the discretion to extend the policy as needed.

What is the Policy Framework?

The policy adopts a three-model approach with tailor-made incentives:

Model 1: Co-working space developers: focused on flexible infrastructure in Tier I & II cities.
Model 2: Neighborhood workspace developers: aimed at grassroots-level employment through local work hubs.
Model 3: IT Campus developers: for large-scale infrastructure and Fortune 500-level investments.

Apart from this, it also includes:

Incentives for IT and GCC firms.
Skill development initiatives including the Future Skills Credit Scheme.
Startup-driven governance collaborations.
Tailor-made packages for mega projects.

Who all are eligible to avail the benefits under the Policy?

The following entities are eligible:

Co-working space developers
Neighborhood workspace developers
IT Campus Developers
IT and GCC firms
Large projects proposing significant employment or investment

What is the eligibility criteria under to avail benefits under all three models?

The eligibility criteria under all the three models are as follows:

Model 1: Co-working space developers

Turnover of at least INR 100 Cr or developed co-working space of minimum 20,000 seats.
Coworking spaces which creates co-working spaces which can accommodate a minimum of 100 seats per facility or have 10,000 sqare feet of developed workspace.
Typical co-working spaces will be located in Tier I and Tier II locations and are large buildings that can accommodate IT workforces from multiple firms in a single location.

Model 2: Neighborhood workspace developers

Turnover of at least INR 100 Cr or developed co-working space of minimum 5,000 seats.
Typical neighboring workspaces will be located in Tier I, II or Tier III locations. Neighborhood workspaces developers who develop workspace which can accommodate a minimum of 10 seats per facility or have 1,000 sqare feet of developed workspace.
These workspaces are typically smaller buildings and could be located within smaller government buildings, apartment complexes, schools or houses that could be leased out. These spaces could house working spaces for as few as 10 people.

Model 3: IT Campus Developers

Developers who developed minimum office space of 5 Lakh square feet.
IT campuses will be located in Tier I and Tier II locations who develops more than 5 Lakh sqare feet with seating requirements determined as per individual proposals. This model would be applicable to developers, IT companies and GCCs.
IT firms must create employment for over 50 employees of the appropriate cadre for at least 18 months to be eligible for the respective benefits. This requirement applies to mid-size IT firms and larger.

What are the Incentives for infrastructure developers under the Policy?

	Co-working space Developers	Neighborhood Working space Developers	IT-Campus Developers
Capital subsidy	50% of capex cost Maximum: Rs. 2,000/ Sqft. * total developed Sqft. Subsidy disbursed after 50% seats are filled. Paid Over 3 years.	50% of capex cost Maximum: Rs. 1,000/ Sqft. * total developed Sqft. Subsidy disbursed after 80% seats are filled. Paid Over 1 year	50% capital subsidy Maximum: Rs. 2,000/ Sqft Paid over 5 years Subsidy to be dis-bursed once at least 30% of land/seats committed are filled
Rental lease subsidy	Rs. 2,000 /seat, for 6 months, as per committed seats.	Rs. 1,000 /seat, for 6 months. Mandatory to meet standards of seats/Sqft.	None
Other Benefits	Industrial Tariff power	None	Industrial tariff power Power at doorstep, 100 feet road system to fast-track approvals area master plans infrastructure buildup Mixed use (not exceeding 33%)
Early Bird	Government buildings – Rent exemption for 5 years Rental assistance – Rs. 2,000/seat for one year if firms create more than 1,000 seats over 12 months	Government buildings – Rent exemption for 5 years Rental assistance – Rs 1,000 per seat for 12 months if firm creates 500 seats across the state within one year of policy	Exemption of contract demand charges for 3 years from start of phase 1 Land at subsidized cost
Tailor-made incentives	Firms creating more than 2,000 workstations across the state	Firms creating more than 2,000 work-stations across the state	Firms creating more than 1 million Sqft for office space

What are the eligibility criteria for the IT and GCC Firms?

IT Annual turnover ≥ INR 30 Cr orat least 50 employees
Firms must maintain employment for at least 18 months to qualify for subsidies

What are the incentives for the IT and GCC Firms?

Description	Incentives
Land	Land facilitation for setting up operations through APIIC
Job creation subsidy for IT Firm	6 months' CTC; disbursed after 18 months: - INR 1.5L for AP graduates - INR 3L for Top 10 NIRF or experienced hires - 100% EPF share for 6 months for Women/BC/SC/ST/Transgender
Rental subsidy	Rs. 2,000 /seat, for 24 months, as per committed seats.
Power Incentive for IT firm	Power Incentive: Industrial tariff will be applicable and discount of INR 1/unit for 5 years
Employee incentive	HRA or Education Allowance up to INR 1L/employee for 3 years Must complete 18 months in AP Claimed via employer portal
Tailor made incentives	Custom incentives for firms creating 2,000+ jobs or 1M+ sq. ft. development
Early Bird incentives	Rent exemption for 5 years in Government buildings

Are there provisions for Skill Development?

Yes. The state will launch a Future Skills Credit Scheme aimed at:

Supporting self-motivated learners, entrepreneurs, gig workers, and mid-career professionals.
Covering in-house, self-funded, and government-sponsored certifications.
Providing access to online and offline courses in tech (AI, cloud, cybersecurity), functional (Excel, accounting), and soft skills.
Offering assessments to align learning with career aspirations.
Making AP's workforce future-ready, adaptable to global trends like hybrid work and the gig economy.

How will the Policy be implemented?

The governance structure includes:

State Investment Promotion Board (SIPB):
Chaired by the Chief Minister; approves mega and strategic investments.
State Investment Promotion Committee (SIPC):
Recommends changes and tailor-made incentives; supports SIPB.
Consultative Committee for IT & Electronics Investments (CCITEI):
A government-industry body for continuous feedback, rapid resolution, and policy review.

Operational guidelines detailing procedures, definitions, and compliance measures will be issued separately by the ITE&C Department.

With its forward-thinking IT & GCC Policy 2024-2029, Andhra Pradesh positions itself as a competitive GCC hub in India. By offering robust financial incentives, cutting-edge infrastructure, and work-force development programs, the state aims to attract top global GCC firms and create a world-class business ecosystem. The policy reflects Andhra Pradesh’s commitment to becoming a leader in India’s evolving digital economy, making it a prime destination for GCC investments.

Navigating government incentives and policy frameworks can be complex, but that's where we come in. Our team offers end-to-end support for stakeholders looking to benefit from the Andhra Pradesh IT & GCC Policy 2024–2029. Reach out to explore how we can tailor our support to your specific business goals in Andhra Pradesh.