What a GCC is
A global capability centre (GCC) is a unit that a multinational group owns and runs in India to carry out technology, engineering, analytics or business operations for the group. Older terms include captive centre, shared-services centre and development centre. The defining feature is that the work is done for the group, usually under an inter-company agreement, rather than sold to third parties.
In practice most GCCs are set up as a wholly owned Indian private limited company that charges the parent on a cost-plus basis. Some groups start with a provider-run model and take ownership later; see operating models.
The market in numbers
Industry and government counts use different bases and years, so each figure below carries its own source.
| Measure | Figure | Source |
|---|---|---|
| Number of GCCs | 2,110+ GCCs across 3,728+ units | Zinnov, FY2026E |
| GCC revenue | USD 98.4 bn | Zinnov estimate, FY2026E |
| Employment | 1.9 mn+ professionals in over 1,700 GCCs | Economic Survey 2025-26, FY2023-24 |
| Growth | 7% compound annual growth, FY2019-20 to FY2024-25 | Economic Survey 2025-26 |
| FDI equity, computer software and hardware | USD 13,946 mn | DPIIT, FY2025-26 (provisional) |
| Tier-2 and tier-3 talent | 82,000+ GCC professionals in cities such as Coimbatore, Indore and Vizag | Zinnov, FY2024 |
| AI skill penetration | India 2.5, second to the US at 2.6 | Stanford AI Index 2025, cited in the Economic Survey 2025-26 |
The work has moved up the value chain
The Economic Survey 2025-26 records that GCCs now carry out product development, engineering, analytics, cybersecurity operations and AI-enabled digital functions, not only support work. It also credits mid-sized and emerging multinationals with widening the GCC base: entry thresholds can be modest, and a first site need not be large.
Foreign groups are building six broad kinds of capability:
| Capability | What it covers |
|---|---|
| Engineering, software and product development | Core GCC work: product engineering, platforms, DevOps |
| AI, data and analytics | Data engineering, analytics and AI functions |
| Financial services and operations | Group finance and operations; a GIFT IFSC option exists for financial-services work |
| Mid-market GCCs | Smaller first sites for mid-sized groups |
| Tier-2 and tier-3 city centres | Centres outside the main metros |
| Life sciences and industrial GCCs | Capability work beyond IT, for pharma, engineering and industrial groups |
Public examples from 2024–2026 include AstraZeneca’s expansion of its Chennai centre, described as its largest such centre worldwide (Business Standard, 14 Jul 2024), and a cluster of announcements in Hyderabad: T-Mobile’s technology centre inaugurated in June 2026, Lonza’s planned GCC (BusinessToday, 5 Mar 2026), JLL’s second Business Services hub after Gurugram (Business Standard, 6 Aug 2026) and Billtrust’s ₹450 crore GCC over three years (UNI, 28 Sep 2026). Headcounts in such announcements are company plans, not commitments.
FDI position
IT, ITeS, BPM, engineering, R&D and consulting services are not listed in the FDI policy, so the general rule for unlisted sectors applies: 100% foreign ownership under the automatic route, with no prior approval. The investor reports after the event (for example, Form FC-GPR within 30 days of issuing shares).
Two exceptions matter:
- Land-border investors. Where an investor, or its beneficial owner, is from a country sharing a land border with India, the government route applies. Non-controlling land-border ownership within 10% may use the automatic route but must be reported on the FIF/NSWS portal first (Press Note 2 (2026), in legal effect from 2 May 2026). See land-border investors.
- GIFT IFSC. A Global In-House Centre serving group financial-services operations registers with IFSCA under the IFSCA (Global In-House Centres) Regulations, 2025, approved on 22 December 2025.
Policy support is now explicit
At the centre, Budget 2026-27 introduced a single 15.5% transfer-pricing safe harbour for IT services and a fast-track for unilateral APAs, aiming to conclude them within two years. The employment-linked incentive (ELI) pays employers for additional jobs created up to 31 July 2027. A national framework guiding states on GCCs in tier-2 cities, announced in the Union Budget 2025-26, was at draft stage in January 2026.
At state level, Karnataka, Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Odisha have GCC-specific policies offering capital, rent, payroll or EPF support. Andhra Pradesh has an IT & GCC Policy (4.0) 2024–2029. Details and conditions are on the locations page.
What a captive needs before go-live
A GCC needs company, labour, data-protection and FEMA filings in place before it starts work:
- incorporation through SPICe+ with GST, EPFO and ESIC registrations;
- share capital received through an authorised dealer bank and reported on FC-GPR;
- shops and establishments, professional tax and Labour Code registrations;
- optional STPI or SEZ unit approval, which some state policies link to stamp duty relief;
- an inter-company services agreement and a transfer-pricing position;
- a plan for the Digital Personal Data Protection Rules, whose core duties apply from 13 May 2027.
The full sequence is on the set-up roadmap.
The main risks
Four issues drive most of a captive’s risk:
- Control and permanent establishment. In Hyatt International (25 July 2025) the Supreme Court found a fixed place PE where the foreign group controlled Indian operations. Decision rights and secondee roles should be documented.
- Pricing. The 15.5% safe harbour suits routine cost-plus centres. Higher-value R&D or AI work may attract a higher margin claim; see tax and transfer pricing.
- Labour rules. The four Labour Codes apply from 21 November 2025, including equal benefits and gratuity after one year for fixed-term staff; see people and hiring.
- Incentive lock-ins. Some state packages carry minimum operating periods, such as Maharashtra’s 10 years.
What to check next
- Confirm that no shareholder or beneficial owner in the chain triggers the land-border rule.
- Decide the operating model (owned from day one, build–operate–transfer or managed team) before choosing a city.
- Screen state GCC policies for eligibility thresholds, domicile conditions and lock-in periods before signing a lease.
- Model the cost-plus margin against the 15.5% safe harbour and decide whether an APA is worth pursuing.
- Map DPDP obligations against the 13 November 2026 and 13 May 2027 dates.