Global Capability Centres to employ 1 million people in Karnataka by 2030: Report

Karnataka is expected to host some 330 Global Capability Centres of top companies by 2030, which are in turn expected to create one million jobs, stated a report released by the state government.

“Our analysis indicates Karnataka’s potential to become a premier GCC hub, potentially hosting over 15 per cent of Forbes 2000 firms. By 2030, Karnataka could host around 330 Forbes 2000 firms. This trend is driven by India’s increasing prominence as the global GCC hub,” said the report, released by IT/BT Minister Priyank Kharge on Monday. GCC employment in the state is expected to see a compound annual growth rate (CAGR) of 10per cent.

Kharge said the government’s upcoming GCC policy will focus on providing incentives and regulations in Bengaluru as well as cities like Mysuru, Hubbali, and Mangaluru.

“Bengaluru holds a commanding 39 per cent of the larger GCC market share in India, a testament to its position as the market leader and largest hub for GCC operations,” he said.

At present, while Bengaluru continues to attract the most GCC-related investment by global companies, it faces stiff competition from Hyderabad, Chennai, Gurugram, Mumbai and other cities.

Kharge said the state government has numerous initiatives in place to attract investments in the state, including the IT Policy, ER&D Policy, Cyber Security Policy, and Data Centre Policy. “Notably, the state has captured an impressive 53 per cent share of the total foreign direct investment (FDI) in the computer hardware and software sector during the fiscal year 2021-22,” he said. 

For pan-India, the number of GCCs, which stood at more than 1,600 in 2022-23, is expected to rise to 2,400 plus by 2029-30, for a market size of $110 billion, according to the report.

This will lead to the employment of 4.5 million plus professionals.

The report said that Bengaluru is home to 25 per cent of India’s digital talent, catering to the rising demand by GCCs, who are increasingly looking at hiring professionals well-versed in artificial intelligence (AI), machine learning (ML) and research and development (R&D) roles.

Going by sectoral breakdown, about 42 per cent of all the GCCs of fast-moving consumer goods (FMCG) giants like Target, Walmart and Unilever are based in the state. Banking, financial services and insurance (BFSI) companies like Goldman Sachs and JP Morgan Chase have 33 per cent of their GCCs here. In absolute terms, BFSI dominates, with 90 plus GCCs in Karnataka, according to data available in the report.