The policy has also set an ambitious $50 billion economic output target for Karnataka from GCC operations by 2029.
The Karnataka Government Friday unveiled the draft of India’s first-ever Global Capability Centre (GCC) policy.
The policy outlines a vision to establish 500 new GCCs by 2029, contributing significantly to the state’s economy and creating 3.5 lakh jobs. The draft policy is now open for public comment and the government has invited inputs to refine and strengthen the policy.
A GCC is an offshore facility that provides services to a parent organisation, most often a multinational corporation.
Karnataka is home to over 30 per cent of India’s GCCs and accounts for 35 per cent of the country’s workforce in this sector.
GCC policy objectives
The policy has also set an ambitious target for the state to aim for an economic output of $50 billion from GCC operations by 2029. The new GCC policy also aims to create an investor-friendly environment to attract GCCs and facilitate their expansion in Karnataka; position Karnataka as a global leader in Artificial Intelligence (AI), promote research and development tailored for GCCs; foster a research and development-driven environment focused on deep-tech and emerging technologies and provide platforms for collaboration between GCCs and the local innovation ecosystem, helping to generate cutting-edge solutions. Moreover, the policy also encourages decentralised growth through the ‘Beyond Bengaluru’ initiative, spreading GCCs across various regions in the state.
Innovation and Infrastructure Focus
The policy places a heavy emphasis on creating Global Innovation Districts in Bengaluru and beyond. These districts will provide state-of-the-art infrastructure, fostering collaboration among startups, academic institutions, and businesses. The government has also proposed creating Centers of Excellence (CoEs) focused on emerging technologies like AI and machine learning. Karnataka already houses 21 such CoEs and aims to expand further through public-private partnerships.
Support for GCCs Beyond Bengaluru
Recognising the need for balanced regional development, the government’s ‘Beyond Bengaluru’ initiative promotes the growth of GCCs in cities like Mysuru, Hubballi-Dharwad, Tumakuru, and Shivamogga. Companies that set up operations in these areas will receive a special package of financial incentives, including rent reimbursements, internet cost subsidies, and property tax exemptions. The policy also supports the establishment of Nano GCCs, which require fewer employees, making it easier for companies to set up operations.
AI and Research Development
A Center of Excellence for AI will also be established in Bengaluru, focusing on the research and development of artificial intelligence. The policy also introduces an AI Skilling Council to develop AI-specific curricula, which will be implemented across the state’s educational institutions. The government has allocated Rs 100 crore to support joint research between GCCs and academic institutions, with a focus on solving real-world business and societal challenges.
Special Incentives for ER&D
Engineering Research and Development (ER&D) is a focus area within the policy. Karnataka is already contributing over $34 billion to India’s GCC market size. The government aims to foster innovation and encourage collaboration between industry and academia to accelerate product development in ER&D.
Talent Development
To strengthen Karnataka’s rich talent pool, the government will provide recruitment assistance, skilling reimbursements, and support for leadership development. Internship programs aimed at providing hands-on experience to local talent will also be a key part of the policy.
source/content: indianexpress.com (headline edited)