States race to build India’s next GCC boom

New Delhi: Indian states are rapidly building their own Global Capability Centre (GCC) boom, aiming to create over 1.1 million jobs and establish more than 1,300 new GCCs by 2031, according to CBRE. Karnataka, Maharashtra, Haryana, Uttar Pradesh, Gujarat, Rajasthan, Madhya Pradesh and Andhra Pradesh are among the states that have enacted GCC policies to entice investment and spur sectoral growth.

Tamil Nadu has also introduced incentives for GCC employees, while Telangana and Delhi have drafted policy frameworks to foster the growth of the GCC ecosystem. Other states are also considering GCC policies, with Kerala proposing draft policies.

Anshuman Magazine, Chairman & CEO of CBRE India, notes that the swift implementation of GCC policies by state governments is unprecedented in India's commercial real estate sector. He emphasizes that GCCs have transitioned from being peripheral to central components of India's services economy, thanks to targeted incentives, accelerated approvals, and long-term infrastructure commitments from states.

Since 2022, GCCs have leased more than 123 million square feet of office space across India's top nine cities, accounting for a growing share of total office leasing. Technology, BFSI, and Engineering & Manufacturing sectors dominate GCC leasing, with these sectors collectively accounting for more than 60% of leasing activity. Karnataka leads the GCC leasing market, with Bengaluru alone recording over 51 million square feet of GCC leasing between 2022 and the first half of 2026.

Hyderabad, Chennai, Delhi-NCR, and Pune also contribute significantly to the national GCC leasing total. While Mumbai has a smaller share at around 4%, it remains a preferred destination for BFSI occupiers.