Uttar Pradesh’s Bid to Become India’s Next GCC Hub

Posted by Written by Sudhanshu Singh Reading Time: 4 minutes

India’s northern state of Uttar Pradesh (UP) has taken notable steps to transform itself into a leading destination for Global Capability Centers (GCCs). With the official notification of the UP GCC Policy 2024, the state aims to attract multinational corporations, including Fortune 500 firms, by offering a robust package of fiscal incentives and regulatory support.

Recognizing the need to extend development beyond established urban corridors, the UP-state government approved the GCC Policy 2024 on May 12, 2025. The policy targets the creation of new GCCs in tier-2 and tier-3 cities such as Kanpur, Varanasi, Gorakhpur, and Bareilly, aiming to stimulate job creation, promote innovation, and reduce the concentration of investments in the Noida-National Capital Region (NCR) belt.

Multinational companies directly manage GCCs—formerly known as global in-house centers—as offshore operations to handle key functions such as IT services, finance, human resources, analytics, research and development (R&D), and customer support. Traditionally, companies have established these centers in metropolitan hubs to retain strategic control over critical operations.

A hub-and-spoke model for UP’s GCC ambitions

The UP GCC policy introduces a hub-and-spoke model to distribute investments across the state. It identifies four distinct types of GCCs to cater to varying scales and business requirements:

  1. Global hubs: Fully integrated centers with end-to-end ownership of operations, functioning as strategic extensions of global headquarters.
  2. Satellite offices: Regional support centers aligned with broader national or global business objectives.
  3. Outsource centers: Facilities run by local partners, responsible for delivering specific business functions.
  4. Cluster/outpost offices: Smaller units with limited staffing, designed to support remote work and talent retention in specific geographies.

Incentivizing decentralized investment

To attract GCCs to non-metro regions, the policy provides a comprehensive suite of financial incentives, such as:

  • Land subsidies of up to 50 percent, depending on location.
  • 100 percent exemption from stamp duty on land and office premises.
  • Capital investment subsidies of up to 25 percent.
  • Reimbursement of operational expenses such as rent, electricity, and internet.
  • Salary support for hiring local talent, including additional incentives for recruiting recent graduates from within UP.

These benefits aim to reduce setup and operating costs, making smaller cities viable and competitive alternatives to traditional tech hubs.

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Classification criteria for level-1 and advanced GCCs

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To ensure that incentives are aligned with the scale and impact of investments, the UP GCC Policy 2024 categorizes proposed projects into two tiers—Level-1 GCCs and Advanced GCCs—based on a combination of investment size and job creation potential. Level-1 GCCs are expected to invest a minimum of INR 200 million (US$2.3 million) or employ at least 200 people in locations such as Gautam Buddha Nagar or Ghaziabad. In other districts, the thresholds are slightly lower, starting at INR 150 million (US$1.7 million) or 100 employees.

For companies looking to set up larger operations, the Advanced GCC category sets the bar higher, requiring INR 750 million (US$8.6 million) or 500 employees, or INR 500 million (US$5.7 million) and 300 employees elsewhere.

Capital and operational support through fiscal incentives

To reduce both setup and recurring expenses associated with establishing GCCs, the state policy provides a structured package of capital and operational incentives. It promotes equitable regional development by calibrating land subsidies based on location. Companies setting up in western UP receive subsidies of 30 percent, while those investing in less-developed regions like Bundelkhand and Purvanchal can avail subsidies of up to 50 percent.

Eligible infrastructure and fixed capital investments qualify for capital subsidies of 25 percent, capped at:

  • INR 100 million (approx. US$1.1 million) for Level-1 GCCs, and
  • INR 250 million (approx. US$2.8 million) for Advanced GCCs,

This capital will be disbursed over a period of seven years.

The state has also earmarked customized incentives for high-impact projects. These include operations with 1,500 or more employees, investments exceeding INR 2.5 billion (US$28.8 million) (excluding land), foreign direct investment (FDI) of at least INR 500 million (US$5.7 million), or firms affiliated with a Fortune Global 500 or Fortune India 500 company that employs more than 1,000 personnel. Such applications will be reviewed by a High-Level Empowered Committee for tailored incentives and fast-tracked approvals.

Addressing regional disparities: UP’s GCC challenges

UP faces a key hurdle in the form of regional imbalance. While Noida and the NCR region have successfully attracted major global players such as Samsung and Adobe, other regions in the state have not witnessed equivalent GCC activity.

To address this, the policy also offers non-financial incentives, such as the following:

  • Approval to operate 24×7 without restrictions.
  • Regulatory exemptions in select areas, including environmental and labor laws.
  • Establishment of a dedicated technical support group for guidance on compliance, clearances, and operational bottlenecks.
  • Promotion of academia-industry collaboration by encouraging partnerships between companies and local universities, incubators, and centers of excellence for talent recruitment and R&D.

This integrated approach is designed to support businesses throughout the investment lifecycle and ensure smoother operations.

States competing for national GCC’s share

Along with UP, other states such as Madhya Pradesh, Tamil Nadu, and Andhra Pradesh are also ramping up efforts to attract multinational GCC investments. According to a 2025 HSBC report, India is expected to host 2,550 GCCs valued at US$110 billion by 2030, creating 2.5 million jobs in the process.

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To tap into this opportunity, several states are implementing GCC-centric policies and promoting their unique advantages—whether in infrastructure, talent, or cost competitiveness—to shift investor focus away from dominant hubs like Mumbai, Bengaluru, and Delhi-NCR.

Karnataka, a traditional tech powerhouse, unveiled its own GCC policy in September 2024, targeting the establishment of 500 new centers by 2029. 

India’s GCC evolution from cost arbitrage to strategic value

Indian companies have transformed GCCs in the country from basic back-office units into sophisticated hubs for innovation and strategic control. Initially, multinational firms outsourced operations to Indian IT service providers like Tata Consultancy Services (TCS). However, corporate companies are increasingly establishing in-house capability centers to ensure stronger data security, protect intellectual property, and align more closely with global business goals.

According to a 2024 KPMG-NASSCOM report, India’s GCC ecosystem employs approximately 1.66 million people. Leading global firms such as Amazon, Microsoft, Google, Goldman Sachs, Deloitte, JP Morgan, etc., have established a significant presence in the country.

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