Source: Financial Express
Context: Global Capability Centres (GCCs) have become a crucial component of India’s economic landscape, contributing over 1% to the nation’s GDP and significantly boosting services exports.
- In FY24, ‘other business services’ provided by GCCs accounted for 26% of services exports, second only to IT services at 48%.
- These centres employ around 3.2 million professionals, including engineers and scientists, with significant contributions in engineering, research, and development (ER&D), business process management (BPM), and IT services.
- GCCs are increasingly establishing operations in tier-II cities due to cost advantages and fresh talent pools.
Government initiatives like ‘Digital India’ and supportive state policies in Karnataka, Telangana, and Tamil Nadu have facilitated the establishment and expansion of GCCs, particularly in sectors like automotive, electric vehicles, electronics, pharmaceuticals, and life sciences.
